JOHANNESBURG (miningweekly.com) – The Africa Finance Corporation (AFC) has committed an additional $3-million loan facility to Ncondezi Energy to fund ongoing project development costs at its 300 MW coal-fired power project in Tete, Mozambique.
The loan, which will be paid in two tranches, will be used to cover costs not included in the joint development agreement (JDA) between Ncondezi and Shanghai Electric Power (SEP).
SEP is investing up to $25.5-million to fund the development costs to financial close in return for a 60% equity interest in subsidiary company Ncondezi Power.
The $1-million first tranche of AFC’s loan is repayable in 2017.
The second tranche of $2-million has a 24-month term from first drawdown and is conditional on the completion of the JDA with SEP and Ncondezi providing an appropriate security package.