Ncondezi Energy has signed a joint development agreement for a thermoelectric power station in Mozambique’s Tete province with the China Machinery Engineering Corp. (CMEC) and General Electric Switzerland (GE), the British company said in a statement.

The company, which is expected to have a 40% stake in this project which links a coal mine to a thermal power plant, expects it to initially have a production capacity of 300 megawatts, which will be increased in stages to 1,800 megawatts.

The statement recalls that the region where the mine is located and where the thermal power station will be built is not connected to the national power grid, and currently has a very low level of electrification.

The agreement stipulates that the China Machinery Engineering Corp will be responsible for engineering design, materials procurement and construction, as well as operation and maintenance and that GE Switzerland will guarantee the technological component of the project, including the boiler, steam turbine, generator and emission-quality control solutions.

The statement from Ncondezi Energy recalls that this agreement is key in order to start negotiations with state-owned power company Electricidade de Moçambique (EDM) on tariffs as well as on electricity concession and purchase contracts.

— Macauhub