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Ncondezi Energy hails tariff proposal submission to Mozambican government

The firm will now start formal tariff negotiations with the local energy provider

Ncondezi Energy Ltd - Ncondezi Energy hails tariff proposal submission to Mozambican government

Ncondezi Energy Ltd (LON:NCCL) has announced the submission of a tariff proposal to the Mozambican Government and state-owned Electricidade de Moçambique (EDM).

The AIM-listed firm, which wants to build a 300MW coal-fired power project and coal mine in Tete, said it represents the last milestone to start formal tariff negotiations with EDM, which will be completed in the second quarter.

READ: Ncondezi Energy continuing with power plant work, tariff submission expected this quarter

The energy company added that “other key workstreams” are expected to start in parallel. 

“The proposal is the culmination of work completed over the last nine months to confirm the project's commercial viability and the company believes it to be strongest and most attractive proposal delivered to date,” said Hanno Pengilly, chief executive at Ncondezi in a statement.

“This is a strategic project for Mozambique, targeting the provision of low cost, reliable and accessible electricity, contributing to both domestic and regional objectives to expand energy access and exports over the next three to five years,” he added.

Total capital expenditure is expected to be US$1.1bn and once completed it will be one of the largest generation plants in the country.

The firm said the programme does not take into account any potential impact from the coronavirus outbreak.

Shares rose 1% to 4.53p on Tuesday afternoon.

Quick facts: Ncondezi Energy Ltd

Price: 3.398 GBX

AIM:NCCL
Market: AIM
Market Cap: £10.72 m
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