The recently inaugurated 120MW gas-fired power station at Ressano Garcia, on the border between South Africa and Mozambique, could be one of the sources of electricity for Southern African countries, which are experiencing supply constraints. Castigo Langa, chairman of Gigawatt Mozambique made this observation during a ceremony marking its launch.
Langa, chairman of Gigawatt Mozambique, who developed the power station, commented: “The $200m (R3.2bn) investment is also a first step
in the harnessing of Mozambique’s huge natural gas resources not only for the benefit of Mozambique and its people, but also for whole of the Southern African region.”
Highlighting the power station’s strategically location close to the main transmission lines that connects South Africa and Mozambique, Langa:
“The project is also an excellent example of successful collaboration across borders between several stakeholders including the public and private sectors.”
Standard Bank provided equity support for the shareholders Old Mutual and WBHO and debt funding. The Export Credit Insurance Corporation (South Africa) and the Multilateral Investment Guarantee Agency (World Bank Group) provided equity.
The plant generates electricity to the equivalent of 250,000 households and will make a substantial contribution to the Mozambican power supply capacity.
Gigawatt Mozambique supplies the power to EDM (the Mozambican power utility) under a long-term power purchase agreement for use in Mozambique and for on-selling into the regional grid.