Power development company, Ncondezi Energy (NCCL) announced on Monday the successful completion of a technical due diligence site visit by its strategic partner, China Machinery Engineering Corporation (‘CMEC’).
The visit was to prepare the Engineering, Procurement and Construction, as well as Operation and Maintenance contracts for the group’s integrated 300MW coal fired power project in Tete, Mozambique.
CMEC were the main contractor, sending a technical team of 14 specialists from its investment, power, mine and water departments.
The visit to the mine viewed the proposed location of key components of the power plant, mine and water infrastructure as well as the nearby operating coal mine and supply quarries.
The EPC and O&M contracts, whose submission is on target for Q4 2019, are key inputs in finalising the project power tariff for submission to Mozambique state power utility Electricidade de Moçambique.
“Completion of CMEC's site visit is an important step in the technical due diligence process to finalise the power plant and mine EPC and O&M proposed contracts,” said Ncondezi Chief Executive Officer, Hanno Pengilly.
He added, “These proposed contracts will provide firm capex and opex numbers for the Project financial model and electricity tariff proposal, required by EDM to demonstrate the proposed Project tariff is both credible and attractive.”
A Q&A session also took place between the technical teams of both CMEC and Ncondezi over two days -- this included power and mine technical consultants involved in the power plant and mine feasibility studies.
The Company described the sessions as successful and explained that the internal due diligence team are now focused on addressing outstanding questions to finalise the EPC and O&M process within the target Q4 2019 timeframe.
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