Page 9 - AfrElec Week 01 2021

AfrElec THERMAL POWER AfrElec

MIGA issues 20-year guarantees

for Mozambique’s CTT

MOZAMBIQUE THE Multilateral Investment Guarantee Agency will be injected into the national grid and sold
(MIGA) has issued guarantees of 20 years for the by EDM to Mozambican end-consumers and to
450-MW Central Térmica de Temane (CTT) neighbouring countries under bilateral contracts
power generating plant in Mozambique. or through the Southern African Power Pool.
MIGA, an arm of the World Bank Group The termination payment obligations of
(WBG), said on December 21, 2021 that risk EDM will be guaranteed by the Government
guarantees of $251.3mn had been issued to of Mozambique, represented by the Ministry
investors in the plant in northern Inhambane of Mineral Resources and Energy (MIREME).
Province against breach of contract and transfer Construction is expected to begin in January
restriction. 2022 and operations around November 2024.
Contracts issuing guarantees to Globeleq MIGA said CTT will provide increased
Africa Ltd, Moz Power Invest and Sasol Africa affordable and reliable power, to meet grow-
Proprietary Ltd for equity and quasi-equity ing energy demand in Mozambique, and will
investments in CTT were issued on December increase the generation capacity available for
8, 2021. export.
The natural gas-fired CTT, which is set to be Support for the project “aligns with the
located approximately 30 kilometres south-west WBG’s Country Partnership Framework and
of the town of Inhassoro and about 20 km inland MIGA’s strategic focus on International Devel-
from the coastline of Mozambique, will be an opment Association countries and conflict-af-
independent power producer (IPP). fected countries,” said MIGA.
“The project will be an IPP generating an The project will increase installed capacity
average of 3,143 GWh annually (under current in a country with a low electricity access rate
dispatch assumptions) for sale to Electricidade and support regional interconnectivity within
de Moçambique E.P. (EDM) under a 25-year Mozambique and neighbouring countries in the
tolling agreement,” said MIGA. Southern Africa region.™
MIGA said power produced by the project

Week 01 06•January•2022 www. NEWSBASE .com P9