Standard Bank provided US170-million dollars in debt financing to help build a 118MW gas-fired power plant in Ressano Garcia, Mozambique. The transaction, funded with 75% senior debt and 5% sub-ordinated debt with a door-to-door tenure of 12 years, is the first project-financed independent power producer (IPP) initiative to reach financial close in Mozambique.
The government awarded Gigawatt a gas power generation concession which is expected to supply power to the capital city of Maputo. On completion, the project will supply about 12% of Mozambique’s total power demand. Gigawatt has also signed a long-term power purchase agreement with state power company, Electricidade de Moçambique. The company plans to use all the power generated by the project domestically.
The plant will be built over 18 months, through a joint venture between WBHO Construction and Parsons Brinkerhoff. Engines for the gas plant will be supplied by Rolls Royce and will be run by TSK.