Ncondezi Energy is currently in the final negotiation stages for power purchase agreement (PPA) and power concession agreement (PCA) for a 300MW power plant project near Tete, North of Mozambique.
All internal work streams and application requirements that will help in finalization of the agreement have been completed. Ncondezi Energy is now in the closing stage of negotiating key parameters of the PPA and PCA with the Department of Energy in Mozambique and Electricidade de Moçambique (EDM), which is the state’s energy group.
After a revised time line had been met by both firms, both agreements are expected to be submitted by mid August. Initiation of transmission, engineering, procurement and construction tender processes are underway.
Officials have also confirmed the power plant’s capital and operating costs through a receipt. Discussions have also been held with export credit agencies and commercial banks for financial support level.
According to the Ncondezi Energy’s CEO Mr. Paul Venter, the process had taken longer than expected due to the complexity of the agreement which will spin for 25 years and off takes in Mozambique.
Negotiations with potential developers are at an advanced stage and the power firm will be updating shareholders on the same in the third quarter of this year.
Ncondezi has received expressions of interest from potential investors with regard to participation in the project
