(Sharecast News) - Ncondezi Energy updated the market on its power tariff finalisation and submission process for the integrated 300MW coal-fired power project and coal mine in Tete, Mozambique on Friday, reporting that the tariff financial model was on track for submission to its strategic partners at the end of January.
The AIM-traded firm said it was targeting a "competitive" tariff rate in line with recently-agreed tariff rates with Electricidade de Moçambique (EDM).
It added that supporting engineering, procurement and construction information had been received, and was under review by its technical team, with supporting operations and maintenance information currently going through an "optimisation process" with strategic partners.
Ncondezi confirmed its tariff submission remained on track for the first quarter, and added that it was targeting the finalisation of tariff negotiations during the first half.
"The process to finalise a tariff offer for submission to EDM is well underway and on track for submission in the first quarter," said chief executive officer Hanno Pengilly.
"The company continues to work closely with its strategic partners and tariff financial advisor to achieve a competitive firm tariff offer in line with the latest agreed tariff rates in Mozambique.
"The updated tariff financial model is expected to be submitted to the company's strategic partners before the end of January for review and comment."
Following that, Pengilly said Ncondezi was expecting the model to be further optimised for final sign-off by all parties, ahead of submission to EDM.
"The Ncondezi Project is one of the most advanced development stage baseload power projects in Mozambique, and is being designed to provide low cost, reliable 24-hour power whilst meeting the strictest emission standards.
"The project is aligned with government strategy for additional baseload power on the grid by 2023 and universal energy access by 2030."
At 1414 GMT, shares in Ncondezi Energy were down 6.22% at 5.21p.
27 Jun 2022 12:53
IN BRIEF: Ncondezi Energy shares drop; company funded until August
Ncondezi Energy Ltd - Mozambique-based power development company - Narrows its pretax loss in 2021 to USD1.8 million from USD2.8 million the previous year. Assets at December 31 stand at USD19.6 million, down from GBP20.3 million at the same time the previous year. Says year was focused on positioning the Ncondezi project within an "increasingly challenging market" for coal and coal power generation. Company adds it is funded into August, with the potential to extend this to the first quarter of 2023, depending on the outcome of its Seritza restructuring.
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