Ncondezi Energy is developing power station in northern Mozambique
China Machinery Engineering Corp (CMEC) and General Electric Switzerland (GE) are its partners
Construction will be in 300Mw phases up to 1,800Mw
New CEO appointed to move project forward
What it owns
“It’s a billion-dollar project,” says chief executive Hanno Pengilly.
GE and CMEC have the balance sheets and the track records to build and operate a project like this.”
The project is in the heart of Tete, Mozambique’s most rapidly industrialising region and a hub for power generation.
Ncondezi Energy (LON:NCCL) will end up with 40% of the project and GE and CMEC with a combined 60%.
Around US$700mln could be funded by debt, leaving the partners with a total of US$300mln to find between them.
Ncondezi’s end would be 40% of that, or roughly US$120mln.
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.
To fund this deal a capital raising of £1.88mln was put in place.
GridX has 15 solar and battery storage projects, of which six are at an advanced stage.
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
· Technical team site visits and final due diligence- Q4 2019
· Submission of updated EPC and O&M proposals - Q4 2019
· Update the Project Financial model and power tariff - Q4 2019
· Finalise tariff offer with EDM - H1 2020
· Finalisation of Ncondezi historic costs - Q2-Q3 2020
· Finalisation of subscription price - Q2-Q3 2020
· Finalise PPA and PCA - Q2-Q3 2020