Aggreko and Shanduka Group have signed power purchase agreements (PPA) with South African power utility Eskom and Mozambique power utility Electricidade de Mocambique.
As part of the deals, Aggreko will sell 92MW of electricity to Eskom and remaining 15MW to EDM. The UK company will supply electricity to both countries from the third quarter of this year until July 2014.
The total value of the deals is expected to be $250m over two years, which include fuel costs.
Aggreko in association with the Matola Gas Company and Gigawatt Mozambique will build gas interconnections, a major substation and 1.5km of 275kV transmission line.
The company is scheduled to start operations at the plant early in the third quarter of 2012.
