Scottish company Aggreko is to provide 122 megawatts of electricity to Mozambican state power company Electricidade de Moçambique (EdM) and to Nampower, Namibia’s state electricity company, under the terms of a three-way contract signed Thursday, Mozambican daily newspaper Notícias reported.
The electricity will be produced at the natural gas fired power plant at Parque Gigawatt, in Ressano Garcia, southern Mozambique next to the border with South Africa.
The contract was signed after EdM gave its authorisation to supply electricity directly to Nampower and will divide the installed capacity of 122 megawatts between the two state companies. EdM will take 32 MW and Nampower will take 90 MW.
Aggreko built the Ressano Garcia natural gas fired power plant in 2012 as part of an ambitious project that turned it into the first cross-border supplier to the Southern African Power Pool (SAPP).
The electricity that will be purchased by Nampower will be supplied via EdM’s transmission lines as far as the border with South Africa and then along the lines of South Africa’s Eskom to the Namibian border.
The new power plant is expected to start operating in the second quarter of the year and, under the terms of the contract just signed, will provide 122 megawatts of electricity for a minimum of two years. It will be powered by gas supplied by the Matola Gas Company.
The total cost of the project is estimated at US$200 million, including fuel costs. (macauhub)