Aim-listed Ncondezi Energy confirms that an updated financial model for its 300 MW coal-to-power and coal mine project in Tete, Mozambique, is ready to be submitted to State-owned utility Electricidade de Moçambique (EDM) by the end of this quarter.
The company anticipates the tariff negotiation process to be finalised before June.
The financial model is being reviewed by Ncondezi’s partners before it is submitted to EDM. It was recently updated with engineering, procurement and construction, as well as operations and maintenance, proposals.
The model was also updated with indicative debt terms from the Industrial and Commercial Bank of China, as well as tax and accounting assumptions from auditors KPMG .
Ncondezi had also received a letter of interest from China Export and Credit Insurance Corporation (Sinosure) to provide political and commercial risk insurance for the project.
The updated model is the final milestone to unlock power tariff negotiations with EDM as Ncondezi looks to deliver a credible and competitive tariff offer during the first quarter of the year.
“The updated financial model, with supporting documentation from leading global players in the power and finance sectors, further elevates the project as a leading advanced-stage development project in Mozambique, and sends a clear message to government, EDM and potential investors as to the serious intentions of the company and its partners to deliver the project,” says Ncondezi CEO Hanno Pengilly.
He adds that the letter of intent from Sinosure, while still at an early stage, is a critical path item for debt funding of any large infrastructure project of this nature and highlights the Chinese government's continued support towards development of reliable baseload energy projects in Mozambique.