Standard Bank provides funding for power plant in Mozambique

14 July 2014

The Standard Bank will provide US$170 million to Mozambican company Gigawatt for construction of a gas-fired power plant with a 118-megawatt production capacity, in Ressano Garcia, next to the South African border, according to Mozambican news agency AIM.

The power plant’s generators will be fired by natural gas from the Pande and Temane fields, in Mozambique’s Inhambane province.

According to AIM, the project may provide 12 percent of Mozambique’s electricity needs and substantially reduce southern Mozambique’s power dependence on South Africa.

Construction of the power plant may take up to 18 months and it will be equipped with turbines manufactured by British company Rolls Royce.

Gigawatt signed a power purchase agreement (PPA) with Mozambican state electricity company Electricidade de Moçambique (EDM) for domestic electricity use.(macauhub/MZ)