Ncondezi Energy is developing a power station in northern Mozambique
Construction will be in 300Mw phases up to 1,800Mw
New CEO appointed to move the project forward
What it owns
“It’s a billion-dollar project,” says chief executive Hanno Pengilly.
The project is in the heart of Tete, Mozambique’s most rapidly industrialising region and a hub for power generation.
In July 2019, a joint development agreement was signed with Chinese firm CMEC and US group General Electric.
Ncondezi Energy (LON:NCCL) will look to retain a 40% equity stake in the project.
Around US$700mln of the construction costs could be funded by debt, leaving the partners with a total of US$300mln to find between them.
On the share register are the African Finance Corporation, a specialist Africa infrastructure fund, and Polenergia that together hold approximately 30% of the company’s issued shares.
Separately, Ncondezi has a joint venture deal with GridX Africa Development with a view to building captive solar and battery storage solutions for commercial and industrial use.
GridX has 15 solar and battery storage projects, of which six are at an advanced stage.
How it's doing
In November, Ncondezi said it had received support “in principle” for a restructuring of an outstanding US$4.3mln loan plus interest.
The restructuring involves a 12-month extension on existing terms, including 12% annual interest rate and the ability for lenders to swap debt for equity in part or in full at a conversion price of 10p per share
Hanno Pengilly, Ncondezi's chief executive said in a statement: “The restructuring will provide additional time to explore future refinancing options and the company has received several refinancing offers to date.
“Management is concentrating on further de-risking the 300MW Ncondezi power project over the next 3 to 6 months and the proposed restructuring will provide the team with sufficient time it needs to do that.”
What the CEO says: Hanno Pengilly
“Ncondezi is uniquely positioned to take advantage of baseload power generation development in Mozambique at an important time for the country.
“The company's 300MW Ncondezi project is one of the most advanced baseload power plant projects in Southern Africa with market-leading co-development partners.”
- Interim COO appointed to lead technical processes at Tete
- Finances for Ncondezi agreed and put in place
- Permits agreed and construction gets underway in Mozambique
- Expansion of GridX solar project
- JDA timetable for Ncondezi