Chinese company Shanghai Electric Power (SEP) has agreed to invest US$25.5 million in an energy production project in Mozambique in return for a 60 percent stake in Ncondezi Power Company (NPC), said the Ncondezi Energy group.
The Ncondezi Power Company when the joint development agreement was signed was a 100 percent subsidiary of British energy group Ncondezi which had 100 percent control of the project to build a coal-fired thermal power plant in Tete province.
According to the statement issued Monday, the US$25.5 million to be paid by SEP will be placed into a new holding company that will own 100 percent of NPC’s shares, and will be used to finance the development costs of the power production project.
The agreement, the statement said, covers only the power station, and Ncondezi Energy will keep control of the coal concession it has in Tete province, central Mozambique.
The coal mine will produce 1.3 million tons of coal per year and the power plant will generate 300 megawatts initially, increasing to 1,800 megawatts in successive phases of 300 megawatts each.
Shanghai Electric Power is listed on the Shanghai Stock Exchange, with the majority of its capital controlled by the State Power Investment Company, one of China’s largest power production groups. (macauhub/CN/MZ)