Ncondezi Energy is in the final stages of negotiations to sign an agreement to sell the electricity produced at a thermal power plant to be built in the Mozambican province of Tete, the British company said Thursday in a statement.
The company also said that it had concluded all the steps required to sign the power purchase agreement (PPA) and the concession contract, and was in the final stages f negotiations with the Energy Ministry and state power company Electricidade de Moçambique (EdM).
According to the statement published in London these negotiations have taken longer than expected “due to their size and complexity.”
The chief executive of Ncondezi Energy, Paul Venter, said that the formal presentation of the PPA and the concession contract was expected in mid August.
At the end of 2013 Ncondezi Energy, formerly the Ncondezi Coal Company, announced that state power company EdM would have the right to an initial stake of 5 percent in the vehicle company that will build the power plant and an option to buy a further 10 percent at “market prices.”
Under the terms of the agreement, a further 5 percent of the shares in the vehicle company will be earmarked for Mozambican citizens who will be able to buy them within five years of the power plant’s launch. (mhub/MZ)