MAPUTO – AN investment of $55 million (about R698.5 million) is set to enhance the utilisation of Mozambique’s natural gas resources to generate power for the country’s economic growth and to increase access to electricity.
International Finance Corporation (IFC), a member of the World Bank Group, on Monday announced the investment in Central Térmica de Ressano Garcia (CTRG), a 175 MW gas-fired power plant in the Southern African country.
CTRG, which is located about 100 kilometers from Mozambique’s capital Maputo, and close to the South African border, is the country’s first gas-fired power plant to reach commercial operation.
It is one of its first independent power producers.IFC provided $55 million on its own account together with a syndicated loan of $42 million from the Emerging Africa Infrastructure Fund and FMO.
Proparco and ABSA Bank Ltd (as arranger) provided parallel loans.
The club of lenders disbursed debt facilities amounting to a total of $189 million.
Adérito Sousa, Chairman of CTRG Shareholders General Meeting, said the conclusion of the project financing for CTRG marked an important milestone not only for EDM and Sasol, but for the entire electricity sector of Mozambique.
Oumar Seydi, IFC Director for Sub-Saharan Africa, said IFC was committed to bridging the infrastructure gap in Africa.
“CTRG uses Mozambique’s natural gas resources to generate power for the country’s economic growth and to increase access to electricity. By supporting projects like CTRG, IFC, Proparco and ABSA Bank seek to encourage other private investors to engage in Mozambique’s power sector,” Seydi said.
Completed in early 2015, the CTRG plant provides highly reliable and competitively priced power to Mozambique’s national utility Electricidade de Mocambique (EDM) under a 20-year power purchase agreement.
CTRG is owned by EDM and Sasol of South Africa, which provided bridge financing for the plant’s construction up to the project financing stage.
– CAJ News