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; as well as a wet-type cooling condenser system and electrostatic precipitators. It is proposed that the cooling system  includes 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
Ncondezi Coal has concluded a power framework agreement with the Mozambique government in relation to its proposed Ncondezi power project.

The agreement will govern the relationship between Ncondezi and government during the development phase of the power project. It will also stipulate the agreed pathway and requisite milestones that need to be reached before financial close of the project, so that Ncondezi can become eligible to be awarded a formal power concession.

The agreement is, besides others, a legal prerequisite for the initiation of exclusive discussions with potential power offtakers, including State-owned utility Electricidade de Moçambique (EDM), for the conclusion of a power purchase agreement.

The agreement covers the first two phases of the Ncondezi project, which will have the capacity to generate up to 600 MW of power. It stipulates that Ncondezi and government will negotiate in good faith and agree to conditions that are mutually acceptable to both parties for any subsequent phases of the Ncondezi power project to take its output up to 1 800 MW.

Further, Ncondezi and the Mozambique government will constitute a liaison committee to assist with the implementation of the agreement. The committee will initially comprise one member each from Ncondezi, government and EDM.

The parties involved hope to have the heads of terms on the key commercial contracts by the fourth quarter of 2013.

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.