Ncondezi Energy Limited (LON:NCCL) has submitted an updated financial model for a 300MW coal-fired power station at Tete in Mozambique to its partners for review.
The model will be used for the tariff calculation to be submitted to state power group EDM and includes engineering, procurement and construction (EPC) and operations and maintenance (O&M) proposals, debt terms from the Industrial and Commercial Bank of China and tax assumptions.
Ncondezi added that tariff submission remains on track for this quarter, with final price negotiations pencilled in by the half-year
A Letter of Interest has also been received from China Export & Credit Insurance Corporation (Sinosure) to cover political and commercial risk insurance for the project
Hanno Pengilly, chief executive, said: "The updated FM with supporting documentation from leading global players in the power and finance sectors further elevates the Project as a leading advanced stage development project in Mozambique, and sends a clear message to Government, EDM and potential investors as to the serious intentions of the Company and its Partners to deliver the Project.
"The LoI from Sinosure, whilst still at an early stage, is a critical path item for debt funding of any large infrastructure project of this nature and highlights the Chinese Government's continuing support for the development of affordable, reliable baseload energy projects in Mozambique."