Saudi Power Firm In $1Bn Mozambique Investment

Saudi private firm ACWA Power has signed a 25-year concession with Mozambique to develop a 300MW coal-fired power plant at Moatize in Tete province. The plant will be built alongside a coal mine operated by Brazil’s Vale, supplying 250MW to power mining operations and the remainder to the local grid.

The plant will be developed on a build, own, operate and transfer (BOOT) basis by ACWA and independent power producer (IPP) partners Vale and Japan’s Mitsui, along with state utility EDM and local investor Whatana. ACWA says the plant will cost $1bn, to be raised through project finance. The plant will burn pulverized low grade ‘overburden’ coal, leaving higher grades for export. ACWA has picked Korea’s GS Engineering and Construction for the engineering, construction and procurement (EPC) contract. (CONTINUED - 283 WORDS)