British company Ncondezi Energy has reached an agreement with Mozambican state electricity company Electricidade de Moçambique (EdM) for the sale of electricity produced in a future coal-fired power plant, the company said in a statement.
Under the contract, valid for a period of 25 years, the amount to be paid initially by EdM, which was not made public, shall be subject to adjustments during the expected lifetime of the plant.
The agreement is still dependent on a number of conditions to be met by the end of 2014, including approval of an investor by EdM and confirmation of the political and business coverage of the risk involved.
The board of Ncondezi Energy also said in the statement that the announcement was the result of negotiations between the company, EdM and the Mozambique Department of Energy on the viability of the project to build a coal-fired power plant in Tete province. (macauhub/MZ)