Mozambique’s state-owned electricity company Electricidade de Moçambique (EDM) has secured up to US$200M from the U.S. International Development Finance Corporation (DFC) and up to US$50M from OPEC to fund its Central Termica de Temane (CTT) project.
The project – a 40 MW gas-fired power plant – is planned to be operational in the fourth quarter of 2021.The plant will supply affordable and reliable power to EDM through a 25-year tolling agreement.
Gas for the plant will be fed from the Sasol-operated Pande-Temane Inhassoro fields, with Globeleq as the lead developer, along with its partners EDM, Sasol Africa Limited and eleQtra. The plant will be designed and constructed by Spanish contractor TSK.
“Mozambique faces one of the lowest electrification rates in the world,” said Edward Burrier, Executive Vice President for Strategy of the DFC.
“This project will reduce the cost of electricity, increase power generation and address a critical development challenge for the people of Mozambique. We are proud of our partnership and look forward to this important project moving forward.”
“Our private sector loan facility complements a public-sector term loan we recently extended to Mozambique’s Government to finance 563-km of associated transmission infrastructure,” said Abdulhamid Alkhalifa, Director General of the OPEC Fund. “Once completed, the Temane initiative will increase the supply of efficient and affordable energy to households, businesses and industries, contributing to social and economic development in Mozambique and the region.”
“The Temane initiative is an absolute regional game-changer. It will ensure a reliable and affordable power supply – crucial elements for economic and social development. CTT will provide electricity access to millions of people in the region,” added Mike Scholey, CEO of Globeleq.
Original article from our partners @ Africa Oil & Power