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Ncondezi Energy signs long-awaited joint development deal with GE and CMEC

Ncondezi Energy said this is a "significant milestone that should materially enhance the credibility of the project in Mozambique"

The plan is to build a coal-fired power plant with an initial capacity of 300MW

Ncondezi Energy Ltd (LON:NCCL) has signed a long-awaited joint development agreement with China Machinery Engineering Corp (CMEC) and General Electric Switzerland (GE).

The deal will allow for the development of the Ncondezi power project in northern Tete, Mozambique. The plan is to build the coal-fired power plant in phases, starting at a capacity of 300MW and building up to 1,800MW in due course.

Ncondezi said the joint development agreement was the last outstanding issue to formally engage with the Mozambican government and state power utility Electricidade de Mocambique (EDM) on electricity tariffs and key project commercial agreements, such the power purchase agreement and power concession.

READ: Ncondezi Energy on verge of signing joint development deal with GE and CMEC

Ncondezi is expected to hold a 40% equity interest in the project.

“The board welcomes CMEC and GE to the project as partners and co-developers and looks forward to working with two world class companies who will bring complimentary skills, resources and experience to deliver the project,” said Ncondezi non-executive chairman, Michael Haworth.

He added: “This is a significant milestone that should materially enhance the credibility of the project in Mozambique and with international financiers, helping to unlock key development processes including the finalisation of the electricity tariff and power purchase agreement with EDM as well as initiating project financing discussions with banks and the China Export and Import Credit Insurance company.”

The JDA signing follows the inclusion of the project as a key infrastructure project at the second China-Mozambique International Cooperation Summit held earlier this year. 

Quick facts: Ncondezi Energy Ltd

Price: 5.35 GBX

Market: AIM
Market Cap: £17.39 m

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