Mozambique gas-fired power plant financing takes shape
A Globtech-led team is expected to close a heavily DFI-backed loan to finance its $624 million 450MW Temane gas-fired project in Mozambique for Q2 2021.
The shareholding in the special purpose vehicle – Central Termica de Temane – is as follows: Mozambique Power Invest (MPI) – 85% and Sasol – 15%, with MPI comprising Globeleq – 60.8%; EleQtra – 15.2%; and Electricidade de Mocambique (EDM) – 24%.
Funding approval is currently being sought for the $391 million debt package being provided by US Development Finance Corporation (DFC) - $200 million, IFC - $100 million, and OPEC Fund for International Development (OFID) - $91 million. The financing may also benefit from a guarantee from fellow World Bank Group member MIGA.
EDM will also be the offtaker of power from Temane under a long-term PAA, while natural gas will be supplied as fuel under a 25-year tolling agreement from the Pande-Temane fields operated by Sasol and state-owned oil and gas company ENH.
