Banking group Standard Bank has confirmed the provision of $170-million in debt financing to support the construction of a 118 MW gas-fired power plant being developed by Gigawatt in Ressano Garcia, Mozambique.
Gigawatt, which is a Mozambican company, has signed a long-term power purchase agreement with State-owned power utility Electricidade de Moçambique (EDM).
EDM plans to use all the power generated domestically so as to lessen the country’s dependence on imports from South Africa.
Head of investment banking at Standard Bank Mozambique Ronaldo Toledo says the deal follows several other gas-related transactions, but is the first project-financed independent power producer initiative to reach financial close in Mozambique – the project reached financial close on June 20, 2014.
The Gigawatt plant would be constructed over an 18-month period by a joint venture comprising WBHO Construction and Parsons Brinkerhoff. Engines for the gas plant were to be supplied by Rolls Royce and would be operated by TSK.