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Three parties sign power deal

Located just inside the border with South Africa, Aggreko gas-fuelled power facility at Ressano Garcia in Mozambique has just concluded a deal with the two national power utilities of Mocambique and Namibia for 122mW into the Southern African Power Pool, in the second half of this year.

Located just inside the border with South Africa, Aggreko gas-fuelled power facility at Ressano Garcia in Mozambique has just concluded a deal with the two national power utilities of Mocambique and Namibia for 122mW into the Southern African Power Pool, in the second half of this year.

Last week power utility, Nampower, became party to a three partner deal to bring electricity via the Southern African Power Pool network, to Namibia. The private operator, Aggreko signed a Power Purchase Agreement with Nampower as well as with the Mozambique utility, Eletricidade de  Moçambique (EDM), for 122 mW electricity from Aggreko’s gas-fuelled interim power plant located at Ressano Garcia, less than a kilometre inside the border with South Africa at Komatipoort.
The agreement follows the authorisation by the Mocambican utility for the direct supply of power by Aggreko to NamPower and will see the installed capacity of 122 MW split between the two utilities with Electricidade Mocambique utilising up to 32 mW and NamPower up to 90 mW, based on the specific needs of both utilities.
Aggreko built the facility at Ressano Garcia in 2012 as part of an ambitious project in which it became the first cross-border, interim Independent Power Provider to the Southern African Power Pool (SAPP). Under the first phase of the project, which started power production in July 2012, Aggreko and its joint-venture partner Shanduka supplies power to EDM for national energy requirements in Mozambique, and also generates power for Eskom.
The new 122 mW plant is scheduled to go into production in the second quarter of 2013 and will supply power for a minimum of two years. Natural gas to the project will be supplied by the Matola Gas Company SA through their gas facility at Ressano Garcia and Aggreko will generate power utilising a sub-concession agreement with Gigawatt Mozambique SA. The total value of the project is likely to be in excess of US$200 million, including fuel costs.
Rupert Soames, Chief Executive of Aggreko plc said: “This new project will make Ressano Garcia the world’s largest cross-border interim power plant, with over 232 mW of gas-fuelled power generation. It underlines the immense potential of the Southern African Power Pool to be a real conduit of cooperation and development among the countries of Southern Africa. The fact that three national utilities are collaborating to support each other’s energy requirements is testament to the benefit of working together for the common good.”
Paulinus Shilamba, Managing Director of NamPower said: “This innovative approach to securing an effective power supply for the people of Namibia is a great example of the spirit of Southern African cooperation. This unique project will contribute to the provision of a reliable power supply across Namibia and support the continued development of the country.”
Augusto Sousa Fernando, CEO of EDM added: “We welcome the second phase of the Aggreko interim power plant at Ressano Garcia, which will assist EDM and its partners in the SAPP to bridge the period until we implement our permanent plants in Mozambique.”

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