Name and Location
Ncondezi power plant project, Tete, Mozambique.

Client
Ncondezi Coal Company. The power plant is expected to be developed in partnership with a power plant developer and operator.

Project Description
The definitive feasibility study (DFS) on the Ncondezi power plant project has confirmed the economic and technical viability of an 1 800 MW mine-mouth, thermal coal-fired power plant, consuming 7.2-million tons a year of coal.

The power plant is expected to be built in phases of 300 MW units using domestic coal from the proposed Ncondezi coal mine.

Each 300 MW power block will comprise a steam generator, using circulating fluidised bed technology; a steam turbine and generator; a wet-type cooling condenser system and electrostatic precipitators. The cooling system is proposed to include wet mechanical draft cooling towers, which will enable the units to operate at higher thermal efficiency.

Value
Initial 300 MW power plant capital expenditure (capex) is estimated at $504-million, with additional capital expenditure of $50-million for transmission.

Phase 1B (600 MW) will cost about $1.1-billion.

Phase 2 (1 800 MW) will cost about $2.25-billion, with a further $247-million for transmission.

Duration
The initial 300 MW Phase 1A unit is expected to be commissioned in 2017. Expansion to 1 800 MW is targeted for 2023.

Latest Developments
The process to select an engineering, procurement and construction (EPC) contractor for the 300 MW Phase 1A of Ncondezi Coal’s proposed 1 800 MW power project is under way.

More than 25 EPC firms worldwide were invited to submit indicative capital expenditure (capex) estimates and funding proposals during a preselection process led by Steag Energy Services.

The proposals are expected during the second quarter of 2013, following which Ncondezi and Steag will select a shortlist of preferred EPC bidders to submit binding, detailed bids during the second half of the year.

The winning EPC contractor’s project capex quote is expected to form part of a power purchase agreement (PPA), the detailed discussions of which are to be initiated by Ncondezi during the next quarter, while the binding bids will play a key role in completing the PPA negotiations and securing project funding.

Key Contracts and Suppliers
Parsons Brinckerhoff (DFS).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Ncondezi Coal Company, tel +44 1481 810102 or fax +44 1481 810120.
Parsons Brinckerhoff, tel + 1 212 465 5000 or fax +1 212 465 5096.