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Ncondezi signs JDA agreement with SEP

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World Coal,

Mozambique coal power developer, Ncondezi Energy, has signed a joint development agreement with Shanghai Electric Power (SEP) to develop the Ncondezi 300 MW coal-fired power plant in Tete Province.

SEP is listed on the Shanghai Stock Exchange with most of its shares held by State Power Investment Corp. (SPIC) – one of the largest generation groups in China with an installed capacity of over 100 000 MW. SEP has experience of owning, constructing and operating coal-fired power plants and has a stated aim of international growth.

Under the JDA, SEP will invest up to US$25.5 million in a new holding company for the project, Ncondezi Power Co., in which it will hold a 60% stake. The Ncondezi coal mine will continue to be wholly owned by Ncondezi Energy and will be developed and financed separately.

As a result of the agreement and SEP’s expertise in coal-fired power generation, the project boiler technology will change from circulating fluidized bed to pulverized coal. SEP will also have effective control of the power project, leading the procurement of the EPC agreements, the O&M agreements and debt financing.

The Ncondezi Project comprises integrated coal mine and plant with development planned in phases of 300 MW to 1800 MW. The first phase targets domestic consumption in Mozambique.

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