As per the deal, Aggreko will provide the power from its plant at Ressano Garcia in Mozambique, which was opened in 2012.
It will be shared between Mozambique’s Electricidade de Moçambique (EDM) power utility and NamPower in Namibia.
EDM will utilize about 32MW of power, while NamPower will use up to 90MW, based on the specific needs of both utilities.
The new 122MW power plant is scheduled to go into production in the second quarter of 2013.
Matola Gas Company will supply the natural gas to the project through its gas infrastructure at Ressano Garcia.
Aggreko will generate power utilizing a sub-concession agreement with Gigawatt Mozambique.
Aggreko chief executive Rupert Soames said the new project will make Ressano Garcia the world’s largest cross-border interim power plant, with over 232MW of gas-fuelled power generation.
"It underlines the immense potential of the Southern African Power Pool to be a real conduit of co-operation and development among the countries of southern Africa," Soames added.
