Ncondezi Energy still waiting on formal feedback in Mozambique

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Ncondezi Energy Ltd (LON:NCCL) continues to await formal feedback from the Mozambique authorities following the December submission of studies for the Ncondezi power project.

In a statement, the company also noted that its Engineering, Procurement and Construction (EPC) power plant contract with China Machinery Engineering Corporation (CMEC) are nearing completion.

The company has received approval to conduct further work on optimised transmission integration solution. This addition is expected to reduce project costs, it noted.

“We believe the project is in a very strong position despite frustrating delays to the completion of the tariff negotiations,” said chief executive Hanno Pengilly. “We look forward to providing further updates in due course.”

Pengilly added: “Whilst we remain confident the Ncondezi Project offers a uniquely advanced stage proposal with a competitive solution to Mozambique’s energy generation targets we continue to await formal feedback from EDM and the government. 

The company is proactively engaging with both EDM and Government to reach a conclusion as soon as possible.

“Agreement on the tariff will unlock the remaining milestones including; finalisation of the 60% subscription price to be paid by CMEC, the Power Purchase Agreement, Power Concession Agreement and Financial Close.”

“In the meantime, we continue to progress other parallel workstreams including signing of the EPC agreement contract for the power plant with CMEC.”

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