Ncondezi progresses JDA with SEP on 300 MW Mozambique power plant project
Aim-listed Ncondezi Energy is steadily progressing the joint development agreement (JDA) with Shanghai Electric Power (SEP) for its 300 MW power plant project, located near Tete, in northern Mozambique.
The agreement, once effective, will see SEP inject $25.5-million to fund the balance of the power project development costs to financial close in return for a 60% shareholding in the subsidiary, Ncondezi Power Holding 2, which will own and operate the project.
The JDA will become effective upon completion or waiver of all the SEP investment conditions and the issue of a Ministerial Decree from the Mozambique government approving the award of the power concession agreement (PCA), both of which are targeted for completion in the first quarter of 2018.
SEP, Electricidade de Mozambique (EDM) and Ncondezi are making good progress on both the power purchase agreement and PCA, which are expected to be completed by the fourth quarter of this year.
“Ncondezi is currently in advanced negotiations with SEP to finalise a development funding agreement pursuant to which SEP will provide up to $3-million to fund a development programme and budget to obtain the decree and finalise the investment agreements over the next 12 months,” the company said in a statement on Thursday.
The funding is intended as a pre-investment to funding under the JDA and will form part of the total investment under the JDA.
Ncondezi further noted that the conclusion of the JDA would be followed by the last development phase of the power project development programme to finalise funding from lenders and achieve financial close in the third quarter of 2018.
Meanwhile, Ncondezi assured shareholders that it had adequate cash resources to fund its activities until May 10 – the date on which the shareholder loan becomes repayable – owing to careful working capital management.
The company has an existing $2.32-million shareholder loan that is repayable at a 1.5 times return rate if paid before May 10, after which the loan becomes repayable at two times the return.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation