UK-based power generation company Aggreko and its joint-venture partner, Shanduka Group, have signed a power purchase agreement with South African power utility Eskom and agreed PPA terms with Electricidade de Mocambique, to provide a 107 MW power plant.
Aggreko will sell 92MW of the plant's electricity to Eskom and the remaining 15MW to EDM. The plant will supply electricity to South Africa and Mozambique from the third quarter of this year until July 2014.
The total value of the deals is expected to be $250m over two years, including fuel costs.
The gas-fired power plant will be based at the Ressano Garcia border between South Africa and Mozambique, and is part of gas given by petrochemicals group Sasol to Mozambique as a royalty, reports Reuters.
Aggreko, in association with the Matola Gas Company and Gigawatt Mozambique, will also build gas interconnections, a major substation and 1.5km of 275kV transmission line.