Debt funding has been secured, and Spain’s TSK been appointed to design and construct, the Central Termica de Temane (CTT) power project in Mozambique.
Globeleq reported that the US International Development Finance Corp. (DFC) would provide up to $200 million for CTT. The OPEC Fund for International Development will provide up to $50mn. The International Finance Corp. (IFC) will meet the balance of the required debt financing.
The OPEC Fund and IFC are both working to finalise their lending.
Financial close on CTT is expected in the second quarter of 2021. The plant should generate first power in the fourth quarter of 2023.
“Mozambique faces one of the lowest electrification rates in the world,” said DFC executive vice president Edward Burrier. “This project will reduce the cost of electricity, increase power generation, and address a critical development challenge for the people of Mozambique. We are proud of our partnership and look forward to this important project moving forward,”
TSK will build the 450 MW power plant using Siemens turbines, which will use gas from the PSA concession. Sasol Petroleum Mozambique operates this concession, producing gas from the Pande-Temane Inhassoro fields. CTT will provide power to Electricidade de Moçambique (EDM) under a 25-year tolling agreement.
Globeleq, state-owned EDM, Sasol Africa and eleQtra are developing the CTT plan.
Lead developer Globeleq’s CEO Mike Scholey said the Temane plan was “an absolute regional game-changer. It will ensure a reliable and affordable power supply – crucial elements for economic and social development. CTT will provide electricity access to millions of people in the region.”
The OPEC Fund also backed the Temane Transmission Project (TTP). This 563 km high-voltage transmission line will carry power from CTT to Maputo, home of around 1.2 million people.
EDM’s chairman and CEO Marcelino Gildo Alberto said the Temane plan was a “key strategic priority” for the company and the government. “We remain committed to delivering this important CTT project, thereby contributing to the government’s goals of universal access by 2030 and positioning of Mozambique as a regional energy hub.”