CDC-Norfund platform may get Dutch backing for Mozambique power project

 CDC-Norfund platform may get Dutch backing for Mozambique power project

Central Termica de Temane, a special purpose vehicle that is constructing a gas-fired power plant in Mozambique, may get $70 million in debt funding from Dutch development finance institution FMO to build and run the project.

The project is an 85:15 joint venture between Mozambique Power Invest (MPI) and Sasol Africa. It houses a 450 MW combined cycle gas-fired power plant.

MPI is majority owned (60.8%) by Globeleq Africa Holdings Ltd, an Africa-focused independent power producer platform created by the UK’s CDC Group Plc and Norway’s Norfund.

EleQtra, an Africa-focused developer and investor in infrastructure assets, owns 15.2% while Electricidade de Moçambique (EDM) holds 24% in MPI.

The power generation project, together with the associated Temane transmission project, is expected to increase the supply of low-cost electricity in Mozambique, where just about a third of the population has access to electricity.

At the regional level, the proposed investment will deepen the integration of the southern African power market by increasing the supply of affordable and reliable energy. This can be deployed as either baseload or peaking power, and that will improve liquidity on the regional competitive market.

Globeleq indirectly owns a majority interest in the project. It is a 70:30 joint venture between CDC and Norfund. While its head office is in London, Globeleq operates through its regional offices in Nairobi, Cape Town, and Douala.

The company has 13 power plants located in Tanzania, South Africa, Côte d’Ivoire, Cameroon and Kenya. It currently generates more than 1,400 MW, and have projects with total capacity of another 2,000 MW in development.

Vivek Sinha

The Capital Quest