Standard Bank appointed as lead arranger and underwriter of a 100MW gas power plant in Mozambique
Standard Bank has been appointed as the lead arranger and underwriter to provide debt for the construction of a 100MW natural gas fuelled power station. The plant, situated just outside the border town of Ressano Garcia in Mozambique, will source fuel from an existing natural gas supply pipeline under a long term fuel supply agreement. A Concession Agreement for the project was signed in December 2010 and is expected to start construction in January 2012 with operations scheduled to start mid-2013.
The project sponsors include Gigajoule Power (Pty) Ltd from South Africa and Eagle Holdings SA and Electrotec from Mozambique. These sponsors have a successful track record in developing and operating large scale energy projects in Mozambique including a natural gas transmission and distribution pipeline of more than 100km. Kensani Capital Advisory (Pty) Ltd is providing financial advisory services to the project sponsors in the raising of the debt facilities.