Mozambican power plant gets funding

Mozambican power plant gets funding

Published: July 9, 2014

Local company Gigawatt receives US$170mn debt package from Standard Bank for 118MW plant.

A 118MW gas-fired power plant project in Mozambique has attracted US$170mn in debt financing.

Gigawatt, a local company, was awarded a concession by the government to build a US$235mn plant in Ressano Garcia, a town close to the border with South Africa.

The plant will supply electricity to the Mozambican capital of Maputo (pictured), and could account for 12% of the country’s total demand. According to data from the US Energy Information Administration and the World Bank, only about 12% of Mozambique’s population has access to electricity.

Standard Bank acted as mandated lead arranger on the 12-year debt package, comprising 75% senior debt and 5% subordinated debt.

The bank worked on other recent transactions in the country’s gas industry including lending US$540mn to the Republic of Mozambique Pipeline Investments Company Limited, US$20mn to the Matola Gas Company and US$240mn to a joint venture formed by Sasol Petroleum Temane Limitada.