British company Ncondezi Energy has signed a contract with Mozambican state power company Electricidade de Moçambique (EdM) to buy and distribute electricity produced at the coal-fired power station that is due to be built in the country, the company said in a statement.
Under the terms of the agreement, which sets tariffs and other conditions, EdM will be the 300 megawatts of electricity produced in the first phase of the project, for a period of 25 years.
Ncondezi Energy also signed a 25-year coal supply contract with Ncondezi Coal.
The Ncondezi integrated coal mine and thermal power plant project is located in Tete province and will be carried out in phases of 300 megawatts each up to a total of 1,800 megawatts. Construction of the power plant is due to begin in 2017 and commercial operation is expected to begin in the following year. (macauhub)