The parties have agreed the terms of a non-binding offer (NBO) related to the development, construction and operation of the coal-fired power project and an open pit coal mine in Tete province.
Ncondezi has agreed to acquire a stake of at least 60% in the power project. The NBO provides exclusivity until 30 April 2018 to complete a binding Joint Development Agreement (JDA).
According to the power producer, the JDA will outline commercial terms on which the partners will complete the acquisition of stakes in the power plant. The JDA will also set out terms about the joint development and funding aspects up to and including financial close (FC).
CMEC and GE are expected to lead project debt financing alongside Ncondezi for the power project and the coal mine project at FC, which is slated for completion at the end of Q4 2018.
On a build-own-operate basis, CMEC and GE will handle the engineering, procurement and construction (EPC) and operations and maintenance (O&M) for the coal power plant.
Ncondezi non-executive chairman Michael Haworth said: “The CMEC and GE NBO has the potential to materially de risk the development, financing, construction and operation of the Power and Mine Projects.
“CMEC and GE’s collective experience in both the energy and mining sectors and specific experience and reputations operating in Mozambique, gives them distinct advantages as a potential partner with Ncondezi.”
Ncondezi’s possible partnership with CMEC and GE comes following the former’s suspension of exclusive discussions with Shanghai Electric Power in late May regarding the coal power project.
