Ncondezi Energy has announced an extension to the deadline by which it must satisfy the investment conditions outlined within the joint development agreement (JDA) with Shanghai Electric Power (SEP).
The JDA covers the development of the 300 MW Ncondezi coal-fired power plant in Mozambique’s Tete Province and will see SEP invest up to US$25.5 million in a new holding company for the project, Ncondezi Power Co.
“Both SEP and [Ncondezi Energy] continue to focus on satisfying the SEP investment conditions as quickly as possible to make the JDA effective and are targeting completion within the extension period,” Ncondezi said in a statement.
The investment conditions include approval by state-owned utility EDM to change the plant design from circulating fluidized bed to pulverized coal, completion of an independent audit of historical project costs, finalisation of the work programme and budget, as well as the relevant transaction documents, and approval from the necessary Chinese regulator and SEP’s parent company.
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.
Shanghai Electric Power is 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.
Edited by Jonathan Rowland.
Read the article online at: https://www.globalminingreview.com/exploration-development/09022016/deadline-to-meet-investment-conditions-extended-ncondezi-energy-2016-197/