Member Info for CF73

What does this all add to:

1. Government Tendering Docs for transmission infrastructure, near our project, just out.

2. NCCL Tranmission Study directly supported the above tendering process., where NCCL have said:

"#Mozambique takes another step towards expanding the transmission network into #Malawi #NCCL's recently completed transmission study accounts for these exciting developments ensuring an optimal supply strategy into the grid"

3. Where Hanno Pengilly had said in the most recent Proactive interview:

"[...] in addition [...] other power plants that were looking to be developed at the time we last did the study, have fallen away. So, it has all impacted how we integrate into the grid, and very, important that we work closely with EDM, to gain access to proprietary information that they have, to complete that study."

What does this all add up to? ;-)

Hanno had said in the recent Proactive Interview regarding other power project/ programmes and implication for Ncondezi feeding into the Grid:

“And, in addition to that, other power plants that were looking to be developed at the time we last did the study, have fallen away. So, it has all impacted how we integrate into the grid, and very, important that we work closely with EDM, to gain access to proprietary information that they have, to complete that study.”

In his most recent Proactive interview, Hanno Pengilly, NCCL CEO, let out that a nearby interconnector line had reached financial close.

We know by other news that very recently Germany, the World Bank and Norway, approved just over $100m for the building of transmission infrastructure (power line and substations) around where our project will be (centre-north of Moz/ Tete).
https://allafrica.com/stories/202008030091.html

This is the financial close that Hanno must have been talking about.

Hanno had said regarding other power project/ programmes:

“…other power plants that were looking to be developed at the time we last did the study, have fallen away.”

The minimum we can infer from that is, is that a) we are the only viable remaining power project, and b) for some reason, significant power-related infrastructure is being implemented, in the area of the centre-north/ Tete, where the monies have been approved for that infrastructure and tendering has begun, where that tendering was directly supported by NCCLs recent transmission study.

The maximum we can infer is that this approved transmission infrastructure is being implemented for OUR project, meaning OUR project is going ahead - all in my opinion (and perhaps a few others).

It was always going to be hard keeping this under wraps, if work in certain areas had to progress (thus enabling us to get to a point of increased confidence by a process triangulation)

Bought some more earlier, but was getting harder and harder. Good luck all!

This is all mahoosive Alex!!

The arrangement of that funding from Germany, World Bank and Norway is the financial close on the connector/ interconnector line he was talking about.

And they would only have agreed, and the tendering started, if our project was guaranteed to happen -- especially in light of other large projects in the area, that were meant to be developed, having 'fallen away'...

In his most recent Proactive interview, Hanno Pengilly, NCCL CEO, let out that an nearby interconnector line had reached financial close. Below is the relevant excerpt:

"A lot of different workstreams that we are working on. We are working very closely with Government, as well as EDM, their state power utility, and our strategic partners, to progress a number of these workstreams. A lot of stuff has followed our submission of the power tariff at the end of March. And following that announcement, a number of peripheral studies had been initiated, one of which was the transmission integration study update, which was, which we provided on update on yesterday. That was really just, reassessing our integration plans. A lot of has changed in Mozambique, since our last plans were done. It was very important that things were up-to-date. Particularly, given that a lot of transmission plans and programmes have been, are being successfully implemented, in Mozambique, which we need to take into account [Then there is audio interference at this point: but Hanno says something about another interconnector/ power line, reaching financial close] ‘right around where our project is located."

https://www.proactiveinvestors.co.uk/companies/news/925908/ncondezi-energy-ceo-updates-as-it-submits-new-transmission-integration-study-925908.html

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The compare with the below segment from the article I've posted:

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"The German government is providing 30 million euros (about 35 million US dollars) for the regional interconnection project and to strengthen internal communications along the EDM transmission lines. The World Bank has provided 42 million dollars, and the contribution from the Norwegian government is 24 million dollars, channelled via the World Bank. These three financing agreements became effective as from this month."

https://allafrica.com/stories/202008030091.html

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The following article, tweeted by NCCL - where NCCL had said their transmission study work had supported the tendering process - provides great insight (our project is happening!):

https://allafrica.com/stories/202008030091.html

Mozambique: Tenders for Mozambique-Malawi Power Line
27 July 2020
Agencia de Informacao de Mocambique (Maputo)

Maputo — The Mozambican government has launched an international public tender to select the contractor who will build the 400 kV electricity transmission line linking Mozambique and Malawi.

The line will run for 220 kilmetres - 145 kilometres inside Mozambique and 75 kilometres inside Malawi.

A source in the Ministry of Mineral Resources and Energy, cited in Monday's issue of the Maputo daily "Noticias", said the line has guarantees of funding of 127 million US dollars from the World Bank, the Norwegian government, and German Cooperation (through the German Development Bank. KfW).

For his part, Joao Catine, the official of the Mozambican publicly owned electricity company, EDM, responsible for the transmission line project, said that another international public tender will be launched "within days" to choose a contractor to build a brand new electricity sub-station to raise the voltage in the centre-north power system to 400 kV, and with a capacity of 500 MVA (megavolt amperes).

"This is enough power to satisfy the short and medium term demand in Malawi", said Catine. "The conclusion of all the procedures for selecting the two contractors is envisaged for December".

Work on the power line should begin in March 2021, and the conclusion is scheduled for March 2023. Catine added that KfW will also support EDM in installing fibre-optic cables along the regional inter-connection line, and along two other high voltage transmission lines in central Mozambique.

The German government is providing 30 million euros (about 35 million US dollars) for the regional interconnection project and to strengthen internal communications along the EDM transmission lines. The World Bank has provided 42 million dollars, and the contribution from the Norwegian government is 24 million dollars, channelled via the World Bank. These three financing agreements became effective as from this month.

The inter-connection project will link Malawi to the Southern African Power Pool (SAPP), which coordinates the planning and operation of electrical power systems among its member utilities. It will ensure diversification of Malawi's electricity supplies, and allow Malawi to participate in the regional electricity market.

The agreements between EDM and the Malawian Electricity Company (Escom) were signed in April 2019 in Blantyre.

This is tendering for both the transmission line and the 400kv substation, the latter for which we found that article recently (plus an extension to what must be an older substation).

Hanno let out that financial close had been reached on an interconnecter in the area where our project was. He also mentioned that other large projects had fallen away, impacting on how we had to efed into the netowkr/ grid. Though, looking at this Doc, that transmission document would have been needed earlier than we were informed that it had been done and was being reviewed i.e. they are already tendering and look at the size of those tendering docs!

Is all about our porject now.

What an excellent find Hammerphil!!

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From the Tender Doc (3.1 Project Background):

“In 2013, the governments of Malawi and Mozambique signed a power interconnection agreement for the construction of the Mozambique - Malawi Interconnector Transmission Line from the Tete Region in Mozambique to Phombeya Substation in Malawi. The proposed transmission line will interconnect the high-voltage power systems of both countries, thereby interconnecting Malawi to the Southern African Power Pool (SAPP). Furthermore, it allows a power transfer between both countries and can therefore reduce power outages due to the shortage of generation capacities in Malawi.”

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NCCLs Transmission Study has supported this, remembering NCCLs Tweet from Aug 7:

“#Mozambique takes another step towards expanding the transmission network into #Malawi #NCCL's recently completed transmission study accounts for these exciting developments ensuring an optimal supply strategy into the grid”
https://twitter.com/Ncondezi_Energy/status/1291659356841431040

If it was a coincidence, then it'd be a mahoosive one.

NCCL have bveen in engaged in GridX for at least since the 23rd Oct 2019 announcement - say about 9 months ago. A timeframe (and longer) over which NCCL have been working with CMEC, it stands to reason that CMEC would be, to some degree or other, aware of GridX. Then, suddenly, CMEC embark on this road.

Any corporation deeply involved in fossil fuel-based energy solutions has, by now, got to be also be looking at related disruptive tech, processes and industries, and they got to be looking to get in early.

CMEC here is connecting itself to a specialist (CATL- KSTAR), in order to do this. CMEC will in turn bring in scale and global connections (am guessing), with NCCL (if there is a link there) providiing a way in to Mozambique.

If we were to learn that working with CMEC on PV power, energy storage etc. nin Moz, that would be a massive positive signal for me on our main Coal2Power Project i.e. that the working relationship is going well, so much so that they are expanding their working relationship into other areas. If CMEC believes that the NCCL team and board could enable their own interests on scale elsewhere, then that really would open things open. We got to remember, the NCCL shareholder base is made up of the likes of AFC, Polenergia etc. Energy/ Infrastructure specialists - these are fairly big players. Diversification is key to all major party interests and ambitions.

If there is collaboratuon here, into PV/ energy storage solutions, then that is a huge signal for the main project! :-)

Good luck all!

A sizeable 250, 000 Buy Trade has just gone through, right on the mid price (definitely not a sell).

What's the betting that NCCL are working wuith CMEC (and KATL) on this in Moz?!

It bodes for the Ncondezi Power Project, in my veiw. The working relationship between NCCL and CMEC view is excellent, having since gone Government-to-Government.

Am confident of a very strong outcome for the Power Project!

Good luck all!

See NCCL RNS from 23 Oct 2019:

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"Ncondezi Chief Executive Officer, Hanno Pengilly, commented:

"Today's announcement marks the Company's strategic entry into the disruptive C&I renewables and battery storage energy sector with an investment in a construction ready project. The Project's technical solution will provide 100% off grid energy supply and is believed to be one of the first solar PV and battery storage projects of this size in Mozambique. The move into the C&I solar and battery storage sector represents a significant opportunity for the Company to complement its existing large-scale baseload power project and access near-term low-risk annuity income streams which the Company believes has significant growth potential."

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CATL-KSTAR, the joint venture of KSTAR and CATL, focus on the R&D and production of energy storage system PCS, EMS, battery packs (including UPS-integrated Li-ion battery packs, residential energy storage battery packs, and packs for small-to-medium Li-ion batteries of nonstandard size), as well charging stations and “solar+storage+charging” integrated products. CATL-KSTAR is committed to providing global customers with the smart solutions of Micro-grid, frequency modulation, peak load shaving and PV storage system as well as offering the mature global service network and fast response service.[...]



Until now, there is 25 GW installation for KSTAR worldwide. KSTAR has been a trusted partner for global energy companies and customers. For CATL, the annual sales volume amounted to 21.18 GWh of energy storage capacity in 2018. Based on annual shipments, CATL is the world’s third largest provider of EV, HEV and PHEV battery solutions.Thus, the joint-venture CATL-KSTAR is the optimal manufacturer and supplier for new energy companies and customers.

Now this is interesing:

https://www.pv-magazine.com/press-releases/cmec-and-catl-kstar-signed-a-strategic-cooperation-agreement/

CMEC and CATL- KSTAR signed a strategic cooperation agreement

China Machinery Engineering Corporation(CMEC) and CATL- KSTAR have signed a global strategic cooperation agreement for energy storage business recently.
July 24, 2020 CATL- KSTAR

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Energy storage will play a key role in the future of developing a low-carbon electricity system. Energy storage can supply more flexibility and balancing to the grid, providing a back-up to intermittent renewable energy. Internationally and locally, it can improve the management of distribution networks, reducing costs and improving efficiency.



To meet the growing market ESS needs and for a greener world, both parties CMEC and CATL- KSTAR signed off on the MOU.The two parties will take their advantages and resources to work closely to develop and explore the global energy storage market. Both agree that a good relationship will make bilateral cooperation more extensive and in-depth,which will boost the development and enhance the competitiveness in the global PV energy storage market.



” We are thrilled to partner with CMEC.The partnership is exiting for us.This win-win partnership will allow us to work more closely with CMEC to develop energy storage projects globally and to strengthen both brand internationally as we continue to expand global market among different countries.” Said Mr. Liu, General Manager of KSTAR.??”With this agreement, we can help deliver great value to clients through deep expertise and wealthy experience.”



CMEC is a large international comprehensive enterprise held by China National Machinery Industry Corporation Ltd (Sinomach), whose core business is project contracting. The business covers international trade, investment, research and development and international service. With the perfect quality, environment, occupational health and safety management system and many years of innovation and development, CMEC has become a famous international brand, whose business covers more than 150 countries and regions in five continents. As a China first-class and famous international EPC and service provider, CMEC promises to continue to provide high-quality service with high added value and high economic returns, and devotes to mutual benefits and development and harmonious progress by adhering to the business philosophy of “making imagination come true”, and makes the world a better place.

[...]

News due in the coming weeks,

- Shareholder Agreement Temr Sheet, where equity stakes in our Billion$$$ project are confirmed. Each time I think about it, it feels an even bigger a deal, this.

- Historic Costs, how much NCCL is owed by CMEC for historic development costs that NCCL have put in. Previously, this was assessed at $17million (when we were working with SEP as opposed to CMEC), but we have spent more since then (and now working with CMEC). Add to that this was for the Power Plant, not including the mine. The total project is Power Plant and Coal Mine. Hanno has said that the more up to date figures will be $17m to $25m. WEll we know it can't be $17m. It will be, in my view, toeards the very top of that range (I have sneaky suspicion it could be more).

So, in the space of the coming weeks, we get confirmation of stakes and a firm formal commitment to the project, of/ by partners, and we begin to have some concrete numbers for helping to value the company.

Add to that our 40% stake (currently plans, may change, all good whichever way); and developer's premium/ fee, which will perhps in the order 2 x Historic Costs, which we learn down the road. We looking at a company valuation many times more tbhan where we are, all kicking off soon.

Am also of the view that the delay was caused by the installation of the CEO at EDM. Hanno said:

"We did have a new CEO of EDM, a few weeks back. That did require, sort of a reintroduction of the project and reestablishment of the processes and procedures we had in place, for the work programme we had targeted, but that’s all done and dusted."

This will not have slowed work on SHA TS or the Historic Costs materially. There are teams working on the nitty gritty of those two workstreams. They won't necessarily have been the same people to be bringing the EDM CEO up to scratch.

Hanno said:

"we’re at a near final draft of the Shareholders Agreement Term Sheet, which I think will be the next major news item."

Is one thing to say that they are nearly done (i..e near final draft'). Is quite another to suggest that it is likely to be the next big news item. Unless, we are going into a very baron period news-wise, am confident we will be hearing soon.

When Hanno says, that SHA TS and Historic Costs are in final drafts or advanced, he has a very good idea of the final content!