The Shanghai Electric Power Co will invest US$3.0 million over the next 12 months to ensure completion of work related to the construction of a thermal power plant in Mozambique, the Ncondezi Energy company said on Thursday.
The completion of the work, said the company listed on the Alternative Investment Market (AIM) of the London Stock Exchange is required to secure a concession contract, which will be granted by government decree.
The two companies have been jointly developing this project in Mozambique and the Shanghai Electric Power Co has committed to an investment of US$25.5 million in exchange for a 60% stake in Ncondezi Power Holding 2 Ltd, the company that will hold and manage the thermal plant.
This plant, which at an initial stage will have an installed capacity of 300 megawatts, will be expanded up to 1,800 megawatts and production will be sold to Mozambican state power company EdM.
The coal mine that will supply the power station has resources estimated at 4.7 billion tons, an amount which according to the Energy Ncondezi, can feed a large project with a long useful life. (macauhub)