Announcement of Ncondezi Power Plant discussions

RNS Number : 4829D

Ncondezi Energy Limited

07 July 2016

 

Shanghai Electric Power and Ncondezi Lead Delegation in Maputo to Discuss 300MW Ncondezi Power Plant

During the week of 4 July 2016, a delegation from the Chinese energy company Shanghai Electric Power Co., Ltd ("SEP") together with Ncondezi Energy Limited ("Ncondezi") arrived in Maputo for meetings with key representatives of the Mozambican Government to discuss the planned 300MW Ncondezi coal fired power project ("Ncondezi Project") to be built in the Tete Province of Mozambique. The project meets the highest standards of environmental protection, and the large scale investment will provide jobs for local people and contribute to the further industrialization of Mozambique.

The delegations were led by Mr Wang Yundan, SEP Chairman and Mr Michael Haworth, Ncondezi Chairman. The objective of the visit was to update local officials on the progress of the Ncondezi Project as well as the future plans and timing for development, financing, construction and operation of the plant.

Key meetings were held with the Minister of Mineral Resources and Energy, Minister of Finance, Electricity de Mozambique ("EdM"), and the Chinese Embassy. A ceremony was held for the signing of the Shareholders Agreement Term Sheet between SEP and Ncondezi, representing an important step towards completing the Joint Development Agreement for Ncondezi Power Project.

The Ncondezi Project is a transformational project for Mozambique, increasing its installed generating capacity, diversifying its energy mix and providing economic and social development to a key growth region with low access to electricity.

SEP Chairman Wang Yundan commented on the visit: "SEP has a strong desire to work with Ncondezi and the Mozambican Government to generate power as soon as possible. The preparatory work is in the advanced stages following significant collaboration between the SEP and Ncondezi technical teams. The investment in the Ncondezi Project meets SEP's strategy to capitalise on overseas opportunities using its technical and financial competence for the creation of another SEP by 2020. The Ncondezi Project will bring many benefits to the Mozambican people, including access to power, skills development and value maximisation of in country resources."

Ncondezi Chairman Michael Haworth commented on the visit: "We are very pleased to once again host Chairman Wang and the SEP delegation in Mozambique. Signing the Shareholder Agreement Term Sheet represents a further step towards completion of the JDA. SEP is the right partner to facilitate the development of the Ncondezi Project and brings significant development and operational experience to the project. SEP and Ncondezi are aligned in their target to complete the development phase of the project and reach financial close. I would like to thank the Mozambican Government and EDM for their continued support for this project and we look forward to a continued strong relationship as we move forward for the benefit of all stakeholders."  

 

Enquiries

For further information please visit www.shanghaipower.com, www.ncondezienergy.com or contact:

Ncondezi Energy:	Hanno Pengilly	[e-mail]
Bell Pottinger:	Daniel Thöle	[phone]
Liberum Capital Limited: NOMAD & Broker	Neil Elliot / Christopher Britton	[phone]

Shanghai Electric Power is incorporated in the People's Republic of China and listed on the Shanghai Stock Exchange with the majority of its shares held by State Power Investment Corporation ("SPIC"). SPIC is one of the largest power generation groups in China with an installed capacity of over 100,000 MW. SEP has experience of owning, constructing and operating coal fired power stations and has a stated strategy of international growth.

Ncondezi Energy owns 100% of the Ncondezi Project which is strategically located in the power generating hub of the country, the Tete Province in northern Mozambique. The Company is developing an integrated thermal coal mine and power plant in phases of 300MW up to 1,800MW. The first 300MW phase is targeting domestic consumption in Mozambique using reinforced existing transmission capacity to meet current demand.

 

END

 

 

AGRZMGGNMVLGVZZ