LONDON (Alliance News) - Ncondezi Energy Ltd said Thursday it has entered the final stages of negotiations on a power purchase agreement and power concession agreement for its 300 megawatt power plant project near Tete in Mozambique.
The company said it has completed all application requirements and internal work streams to finalise the agreements. It is in the closing stages of negotiating the parameters of the agreements with the Mozambican Department of Energy and Electricidade de Moçambique.
The agreements have taken longer than it has expected due to their length and complexity, Ncondezi said.
"Fortunately, these minor delays do not impact the overall project schedule, and we are still targeting project close by year end and construction in the second half of 2015," said Chief Executive Paul Venter in a statement.
Formal submission of both agreements is expected by mid-August.
Negotiations with potential co-developers are at an advanced stage, and Ncondezi said it expects to provide an update during the third quarter. Additionally it has appointed Marsh Ltd as its insurance advisor.
Shares in were trading up 1.7% at 6.10 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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