Ncondezi Energy does not expect GE coal exit to impact Mozambique project

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Ncondezi Energy does not expect GE coal exit to impact Mozambique project

9:08 CAT | 23 Sep 2020

File photo: For illustration purposes only. [File photo: Folha de Maputo]

Ncondezi Energy said it did not expected General Electric’s decision to exit the new-build coal power market to have a material impact on its namesake 300 megawatt project in Mozambique.

The company said it had not received any formal notification from GE regarding its future role in the project, to which it had previously agreed to provide its power technology.

Ncondezi Energy last month signed a shareholders agreement term sheet with China Machinary Engineering Corporation confirming the latter’s intention to be the lead investor subscribing for a 60% equity stake in the project.

‘Should the project need to replace GE in its role as the technology partner the company is confident that in conjunction with CMEC it can source a new technology partner and it is not envisaged that such a process would have a material impact on the project,’ it said.

‘All critical project work streams, including the historical cost audit and tariff negotiations, continue to progress positively.’

News Release

General Electric

Ncondezi Energy Limited (“Ncondezi” or the “Company”) (AIM: NCCL) notes General Electric Company’s (“GE”) announcement yesterday regarding their intention to exit the new build coal power market.

The Company is in communication with GE and confirms that it has not received any formal notification from GE regarding its future role in the Ncondezi 300MW coal-fired power project (the “Project”) following the announcement.

In August, the Company signed a Shareholders Agreement Term Sheet with China Machinary Engineering Corporation (“CMEC”), which confirmed CMEC’s intention to be the lead investor subscribing for a 60% equity stake in the Project and acting as the main Engineering Procurement and Construction (“EPC”) and Operations & Maintenance (“O&M”) contractor for the construction and operation of the Project. Should the Project need to replace GE in its role as the technology partner the Company is confident that in conjunction with CMEC it can source a new technology partner and it is not envisaged that such a process would have a material impact on the Project. Further updates will be made in due course.

All critical Project work streams, including the historical cost audit and tariff negotiations, continue to progress positively.

Source: Shares Magazine / Investgate