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Mozambique issues RFQ for hydropower project

The project company will sign an offtake agreement under a long-term power purchase agreement (PPA) with EDM. (Image source: Adobe Stock)

Mozambique’s Ministry of Mineral Resources and Energy (MIREME) has invited developers to submit request for qualification (RFQ) documents for the planned 1,500MW Mphanda Nkuwa Hydropower Project

MIREME is being represented by Gabinete de Implentacao do Projecto Hirdoelectrico de Mphanda Nkuwa (GMNK) for the hydropower scheme. The government entities are conducting a competitive tendering process to select a strategic partner to develop the project, which will be located on the Zambezi river, 60km from the Cahora Bassa Dam.

Interested parties can obtain more information and collect the RFQ by contacting GMNK from 14 December. The deadline for submitting RFW is 28 February 2022.

Synergy Consulting is the transaction advisor (TA), with Worley and Baker Mckenzie providing technical and legal advisory services respectively. HRA Advogados is acting as the local legal adviser.

Under the proposed structure, the strategic partner is expected to be the majority shareholder developing the project, with government entities Electricidade de Mozambique (EDM) and Hidoelectrica de Cahora Bassa (HCB) owning the remaining stakes.

The project company will sign an offtake agreement under a long-term power purchase agreement (PPA) with EDM, along with direct and indirect offtake agreements with other potential offtakers in the region.

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