LONDON (Alliance News) - Ncondezi Energy Ltd Tuesday said it has submitted its Draft Power Purchase Agreement and Power Concession Agreement for its 300 megawatt Ncondezi Project and it continues to be in negotiations with potential co-developers.
The thermal-coal producer, with operations in Mozambique, said it submitted its Draft Power Purchase Agreement for the site to Electricidade de Mozambique and made its application for a Power Concession to the Mozambican Department of Energy during March.
The company said that it is in negotiations over both processes and is targeting the finalisation of its Power Purchase Agreement and the receipt of its Concession application during the second quarter.
Ncondezi said it has now expects to announce the preferred bidder for its Engineering, Procurement and Construction for the site during the third quarter, while evaluation confirmed that the power plant's capital costs and build times are in line with expectations previously announced.
In March, the company said it received four bids for the EPC contract from internationally recognised firms, which were all submitted as fixed-price lump-sum turnkey contracts.
Ncondezi added on Tuesday that negotiations with several potential co-developers for the site started during the previous three months and are progressing well with an update expected to be made to the market during the second quarter.
The company added that it is fully funded to complete its current work streams, with cash balances of USD5.9 million.
Ncondezi shares were up 2.6% to 5.00 pence Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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