Ncondezi Energy is hoping to complete the process of signing on a partner to assist with the development of its proposed 300 MW Ncondezi coal-fired power project, in Tete, Mozambique, by the end of this year.
Ncondezi is seeking a partner capable of providing a leadership role in the financing, construction, and operation of the power plant.
The company has already started receiving non-binding offers and expected all such offers to be submitted to it before the end of August.
During September, the company will narrow the offers down to a few preferred parties. It will support these parties to complete due diligence ahead of the submission of binding offers early in the fourth quarter of this year.
The company expects to be in a position to accept its preferred offer before year-end.
“The Ncondezi project is one of the most advanced development-stage coal-fired power projects in the region and remains an attractive opportunity to international developers and operators. Today’s announcement highlights the progress achieved in identifying a new strategic partner to take on a leadership role in further developing the project.
“We are very pleased with the quality of the partners who have submitted offers to date, and believe the power project will be well positioned to finalize development, financing and initiate construction once a binding offer has been agreed,” commented chairperson Michael Haworth.
Meanwhile, Ncondezi on Friday also announced that it had received support from loan holders to extend its shareholder loan for a further 12 months to September 2, 2018. This will give the company time to conclude its search for a new partner, to better develop loan repayment option and raise additional working capital.(miningweekly)