Globeleq and partners secure financial close for Central Termica de Temane power project

Globeleq, Africa's leading independent power company and its partners, Electricidade de Moçambique, E.P. (EDM), and Sasol, have achieved the financial close of its planned Central Termica de Temane power project (CTT) in Mozambique. 

The debt financing of the US$652.3 million project is being provided by IFC, together with its "B" loan participants FMO and Emerging Africa Infrastructure Fund (together US$253.5 million), US International Development Finance Corporation (DFC) (approximately US$191.5 million) and the OPEC Fund for International Development (OPEC Fund) (US$50 million). The Multilateral Investment Guarantee Agency (MIGA) has provided up to US$251.3 million in political risk insurance to private sector equity investors.

Located at Temane in Inhambane Province, CTT consists of a 450 MW gas-fired power plant that will supply power to EDM under a 25-year tolling agreement. CTT is expected to provide electricity to meet the demand of 1.5 million households and will contribute about 14% of the electricity supply capacity available to meet demand in Mozambique.

CTT also anchors a new 563 km high-voltage transmission line (the Temane Transmission Project (TTP)) and secures the first phase of the interconnection of the southern grid to the central and northern grids of Mozambique.  This will establish a corridor of electrification and ensure a more stable and secure grid and enable the connection of future renewable generation projects. The TTP is owned by EDM and will be funded using grant and concessional finance provided by the World Bank, Africa Development Bank, Islamic Development Bank, OPEC Fund, and the Norwegian Government.  Together, the entire value chain (gas development, gas-fired power plant, and transmission infrastructure) will see an investment of more than US$2 billion.