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Ncondezi to select EPC contractor for power project

13th March 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – The process to select an engineering, procurement and construction (EPC) contractor for the 300 MW Phase 1A of London-listed Ncondezi Coal’s proposed 1 800 MW power project, in northern Mozambique, is under way.

The company reported on Wednesday that more than 25 EPC firms globally had been invited to submit indicative capital expenditure (capex) estimates and funding proposals during a preselection process led by Steag Energy Services.

Ncondezi aimed to develop a 1 800 MW coal-fired plant in phases, with the initial 300 MW Phase 1A unit to be commissioned in 2017. Expansion to 1 800 MW was targeted for 2023.

The proposals were expected during the second quarter of 2013, following which Ncondezi and Steag would select a shortlist of preferred EPC bidders to submit binding, detailed bids during the second half of the year.

The winning EPC contractor’s project capex quote was expected to form part of a power purchase agreement (PPA), the detailed discussions of which were to be initiated by Ncondezi during the next quarter, while the binding bids would play a key role in completing the PPA negotiations and securing project funding.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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