A Review of the Nigerian Energy Industry

UK’s Ncondezi Energy shortlists 7 firmsfor Mozambique power project

Power Transmission 109 November 2013, Maputo — The London-based company Ncondezi Energy has announced that it has pre-selected seven companies to bid for the contract to construct its 300 megawatt power station in Moatize district, in Mozambique’s western province of Tete.

In June, Ncondezi received 16 non-binding proposals for the engineering, procurement and construction contract (EPC). From these proposals, Ncondezi has selected a short list of seven construction companies who can now tender for the final, binding proposal process.

According to Ncondezi, these companies must submit “a binding, fixed price lump sum turnkey contract for the engineering, procurement, construction and commissioning of two 150 megawatt power plant boiler units”.

The company expects to select the successful construction company in the first quarter of 2014, which will pave the way for a purchasing power agreement with Mozambique’s publicly owned electricity company, EDM.

Unlike neighbouring coal projects, Ncondezi will devote itself to meeting Mozambican demand for electricity, using its own thermal coal. It is thus, unlike other mining companies in Tete, not dependent on the rail and port infrastructure.

Ncondezi’s mine will be an open cast operation with a target output of 1.3 million tonnes per annum. This should be commissioned in the second half of 2016 and begin stockpiling for the power plant, which is due to open in the second half of 2017.

The company plans to expand the power plant in stages up to 1,800 megawatts.

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