Mozambique’s Ncondezi Energy has launched talks with China Machinery Engineering Corporation (CMEC) and General Electric South Africa (GE) on the construction of its 300 MW coal plant in Tete. The parties have drawn up the terms of a non-binding offer for the development, construction and operation of the plant and a coal mine in the province of Tete.
This offer confers the exclusivity of the project to the two developers until April 30, 2018, at which time they will have to
submit a Joint Infrastructure Development Agreement (JDA).
submit a Joint Infrastructure Development Agreement (JDA).
Ncondezi will own 60% of the plant and the JDA will specify the conditions for the acquisition of the remaining shares by the
two companies. It will also specify the conditions under which the plant will be developed as well as the means of mobilizing the
necessary funds.
two companies. It will also specify the conditions under which the plant will be developed as well as the means of mobilizing the
necessary funds.
CMEC and GE hope to lead the mobilization of these funds in collaboration with Ncondezi. The financial close is scheduled for Q4 2018.
The construction of the plant will be based on a build-own-operate model under which the two developers will build, operate and
maintain the plant.
The construction of the plant will be based on a build-own-operate model under which the two developers will build, operate and
maintain the plant.
Recall that Ncondezi Energy has recently suspended its discussions with Shanghai Electric Power on the same project, after more than three years of negotiations and works, because of delays in funding