Aim-listed Ncondezi Energy has submitted a final work programme and timetable for its Ncondezi integrated 300 MW power and coal mine project, in Tete, Mozambique, to a government-sanctioned liaison committee that is tasked with implementing the project.
“The updated work programme and timetable is the final part of a process, which targets having all relevant parties responsible for the project's delivery in agreement on the way forward.
“Once agreed, the company and its potential strategic partners can focus on the delivery of key milestones, such as the joint development agreement (JDA),” Ncondezi chairperson Michael Haworth said in a statement published on Monday.
The liaison committee comprises representatives from the Ministry of Mineral Resources and Energy and Mozambican State-owned power utility Electricity de Mozambique (EDM).
The timetable has been designed to fit with EDM's generation plan, which includes coal-fired power to be produced in the Tete region by 2023.
The proposed work programme and timetable targets approval being received from all liaison committee members before year-end; however, the timing will be dependent on feedback from the liaison committee and the review and agreement process.
Ncondezi expects to conclude the JDA and the signing of binding engineering, procurement and construction and operations and maintenance contracts in the first quarter of 2019.
This will be followed by the signing of a power purchase agreement and power concession agreement by the first quarter of 2020.
Ncondezi further expects to reach financial close for the project during the first half of 2020, with commercial operation at the project to start in the first half of 2023.
“The project is one of the most advanced power development projects in the region and is located in an area where the effects of drought have reduced generation capacity from traditional hydroelectric power sources by up to 25%.
“The company believes it is well positioned to bring meaningful benefits to Mozambique and meet its growing power needs, with a clear pathway to delivery in 2023,” Haworth commented.