Ncondezi initiates final EPC contract proposals process for Moz energy project
JOHANNESBURG (miningweekly.com) – Aim-listed Ncondezi Energy on Thursday launched the engineering, procurement and construction (EPC) contract binding proposals process for its 300 MW integrated thermal coal mine and power plant project, near Tete, Mozambique.
The EPC preselection process was completed in June, with Ncondezi having received 16 nonbinding indicative bids from power plant EPC firms. This followed the selection of a prequalified shortlist of seven EPC firms to tender in the final binding proposals process that would be managed by Steag Energy Services, a wholly owned subsidiary of Germany's fifth-largest electricity generator Steag.
“The prequalified bidders are expected to submit a binding, fixed-price, lump-sum turnkey contract for the engineering, procurement, construction and commissioning of two 150 MW power plant boiler units using circulating fluidised bed technology,” the company said.
The EPC preselection process was based on a single 300 MW boiler unit, however, subsequent discussions with Electricidade de Mozambique (EdM) resulted in specifications being revised to include two 150 MW boiler units, Ncondezi noted, adding that all the prequalified EPC firms had confirmed that they would be able to meet the revised technical specifications.
A preferred EPC firm was expected to be selected during the first quarter of next year, and the binding bid would play a key role in completing the project’s power purchase agreement with EdM, as the recovery of the final binding capital cost would be included in the agreed tariff rate, Ncondezi said.
The emerging Mozambican power development company expected to commission the first 300 MW of the planned 1 800 MW thermal coal mine and power plant project in 2017, followed by commercial operations during the first half of 2018. Expansion to 1 800 MW was targeted for 2023.
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