Ncondezi Energy Ltd (LON:NCCL) said it remains on track to deliver a formal tariff offer to the Mozambique authorities in “early Q1 2020” after receiving tender bids from engineering and operations partners. 

The AIM-listed company said it has been given updated engineering, procurement and construction (EPC) and operations and maintenance (O&M) bids for its proposed 300-megawatt power station, with supporting information “on track” for early January.

READ: Ncondezi Energy believes there may be scope to accelerate development of Mozambique power plant

In addition, preliminary commercial bank funding terms for the debt component of the project financing have been received, with chief executive Hanno Pengilly saying Ncondezi was targeting a minimum debt financing of 70% of the project’s full capital costs.

With the EPC and O&M now being reviewed, Pengilly said together with the bank funding the company has all the “key inputs to update the project financial model and deliver a credible tariff offer” to Electricidade de Moçambique, with a further update to be provided once all information to update the model has been received.

The Ncondezi project, where a nearby coal mine will supply fuel for the proposed power station, aims to provide low-cost additional baseload power for the EDM grid by 2023 as the government aims to move towards universal energy access by 2030.