Aim-listed Ncondezi Energy on Thursday announced that the process to conclude a binding joint development agreement (JDA) for its 300 MW integrated power and coal mine project, in Tete, Mozambique, is “moving forward.”
The JDA will formally set out the terms on which the project will be developed, funded and operated.
The company said it had concluded positive meetings with the liaison committee, which was set up and chaired by the Mozambican Ministry of Mineral Resources and Energy, where the updated project work programme and timetable targeting power to the grid by 2023 was presented.
After the meetings, the potential strategic partners confirmed that the process to conclude the JDA can now move forward.
All parties are reviewing the latest draft and timetable for completion of the JDA, although Ncondezi does not expect material delays, if at all, from the current targeted timeframe of first quarter of this year or any impact on the overall timetable leading up to the first power delivery, targeted for 2023.
The JDA is now being prioritised and will be followed by other project deliverables such as the receipt of binding engineering, procurement and construction and operations and maintenance contracts.
This will ensure timelines of key milestones such as final tariff submission, the power purchase agreement or financial close are as per the approved project timetable.
Ncondezi nonexecutive chairperson Michael Haworth, noted that the announcement “further reinforces the serious intent of all parties to deliver the project, one of the most advanced power development projects in the region.”
He concluded that Ncondezi and its potential strategic partners have agreed to now focus on concluding the JDA as soon as possible.