(Sharecast News) - Ncondezi Energy announced on Thursday that the engineering, procurement and construction (EPC) power plant contract for the integrated Ncondezi 300MW coal-fired power project and coal mine in Tete, Mozambique, had been signed with China Machinery Engineering Corporation (CMEC) at a virtual signing ceremony.
The AIM-traded firm said the contract confirmed CMEC as the main contractor to provide design, engineering, manufacturing, procurement, construction, erection, installation and commissioning of the two 150MW coal-fired power station on a turnkey basis.
It said the contract was valid for three years, and subject to standard conditions being met before construction could start, including the achievement of financial close at the project.
"We are delighted to sign the power plant EPC contract, the main construction contract for the project," said chief executive officer Hanno Pengilly.
"This represents a material de-risking event and demonstrates the commitment of our strategic partner CMEC going forwards.
"Together with our partners we are now focused on delivering the remaining milestones and look forward to providing further updates in due course."
At 1309 BST, shares in Ncondezi Energy were up 6.98% at 1.74p.
IN BRIEF: Ncondezi renewable energy subsidiary agrees loan extension