The company Scatec Solar and the Norwegian Development Fund (Norfund) signed on Monday in Maputo a contract guaranteeing the sale of solar power to the state-held Electricidade de Moçambique (EdM) for a 25-year period, the company announced in a statement.
The contract was signed at a ceremony attended by visiting Norwegian Foreign Minister Børge Brende and Mozambican Mineral Resources and Energy Minister Letícia Klemens.
The project comprises the first large-scale solar energy production plant in Mozambique, located in the city of Mocuba in Zambézia province. With an installed capacity of 40 megawatts it is expected to supply 77,000 megawatt-hours per year to about 175,000 homes.
A shareholders agreement was also signed between KLP Norfund Investments AS (22.5 percent), Scatec Solar (52.5 percent) and Electricidade de Moçambique (25 percent), involving an estimated cost of USD 84 million.
The project will be financed with USD 64 million (76 percent) from the International Finance Corporation of the World Bank group. The remainder will be guaranteed by the shareholders; EdM’s part will be borne by the Norwegian government by means of a donation.
Scatec Solar also reported that the financial part of the project is nearly concluded. Construction of the solar power installation should begin in the first quarter of 2017 and be finished in December of the same year. (Macauhub)