News Column

Standard Bank to Finance Gas Fired Power Station

July 10, 2014

Standard Bank has announced it has reached an agreement with the Mozambican company Gigawatt under which it will provide 170 million US dollars to help finance the construction of a 118 megawatt gas-fired power station at Ressano Garcia, on the border with South Africa.

The power station's generators will run on natural gas from the Pande and Temane fields in the northern Mozambican province of Inhambane.

The project is expected to supply twelve per cent of the country's electricity needs and substantially reduce southern Mozambique's energy dependence on South Africa.

According to Standard Bank'sRonaldo Toledo, "the Gigawatt transaction not only demonstrates Standard Bank's commitment to Mozambique but also underscores the role that financing can play in helping resource rich countries benefit from their own natural resources".

The power station will take 18 months to construct and will use gas turbines made by British company Rolls Royce.

Gigawatt has signed a long term Power Purchase Agreement with the Mozambican public electricity company (EDM) for the domestic use of electricity.

Research carried out by Standard Bank states that peak demand in Mozambique is 805 megawatts and is growing at about 14 per cent per year.

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Source: AllAfrica

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