Central Termica de Temane

active

Mozambique Power Invest, S.A. (‘MPI’) in a joint development agreement with Sasol New Energy Holdings (Pty) Ltd (‘SNE’) intend to develop the Central Térmica De Temane (‘CTT’) project, a 450MW Combined Cycle Gas Turbine power project (the ‘project’). CTT will sell power through a 25-year tolling agreement to Electricidade de Mozambique E.P. (‘EdM’). The project is located in northern Inhambane Province, Mozambique, approximately 30 km southwest of the town of Inhassoro, 20 km inland from the coast. IFC’s financing seeks to support the construction and operations necessary for the project development. Details of IFC’s financing package can be found in the accompanying Summary of Investment Information (‘SII’).The Project will be owned by Central Termica de Temane, S.A. which is owned 85 percent by Mozambique Power Invest (“MPI”) and 15 percent by Sasol New Energy Holdings Ltd. (“Sasol New Energy”). MPI is owned 60.8 percent by Globeleq Africa Holdings Limited (“Globeleq”), 15.2 percent by EleQtra Limited (“EleQtra”) and 24 percent by EDM.MPI’s shareholding is comprised of EdM and Temane Energy Consortium (Pty) Ltd, the latter being a joint venture between Globeleq and EleQtra. Globeleq, the project operator with effective 51.7% of project ownership, operate thirteen power plants throughout Africa generating more than 1,400 MW, with an additional 2,000 MW in development. Remaining effective project shareholders are Sasol 15%, EleQtra 12.9%, EdM 20.4%. The Globeleq ESG team is the leading partner on environmental and social matters for the project. Natural gas for the power plant will be supplied from the nearby Temane and Inhassoro gas fields, developed by Sasol Petroleum Mozambique (‘SPM’) and Empresa Nacional de Hidrocarbonetos E.P. (‘ENH’), of which IFC has been an investee since March 2006 [project #10983].The main components of the project include i) a 450MW combined cycle gas turbine (‘CCGT’) power generation facility requiring ~15ha land, including a Partial Protection Zone (PPZ) of 100m, ii) a buried 1.8 km gas pipeline with a PPZ of 100m (footprint of ~18ha), from an LPG plant to the CTT plant, to be developed and operated separately by EdM, iii) a 25 km 400 kV electrical transmission line connecting the project to the proposed Vilanculos substation with 100m PPZ (~250ha footprint), iv) two groundwater boreholes located within the CTT plant site, v) water injection wells for the injection of process effluent also located within the CTT plant site, vi) a ~1 km access road to the CTT plant site, vii) upgrade and minor widening to limited sections of existing national roads (EN1 and N241) allowing for heavy load transport during construction, viii) a construction accommodation camp at an existing plot north east of the site and a contractor laydown area within the CTT site, ix) a temporary jetty and laydown area (footprint of ~1ha) at a beach landing site in in Inhassoro town (either the Maritima or the SETA sites) to allow for a maximum of 10 barge deliveries of oversized and heavy equipment over 7-10 months during construction, and x) the temporary reinforcement of an existing bridge across the Govuro River to allow for the transportation of the heavy equipment required for the CTT plant construction. The CTT plant site is located in a rural area, over 2km from the nearest community - Mangugumete. The main economic activity in the area is subsistence farming. At the point of IFC’s disclosure the CTT project is in the process of selecting an engineering, procurement and construct (‘EPC’) contractor via competitive tender. It is anticipated that construction works will commence Q3 2021 with commissioning due to commence Q3 2023  The 25km 400 kV Vilanculos transmission line (‘VTL’) will be funded by the CTT sponsors and constructed by an EPC contractor under a wider regional power interconnection project, the Temane Transmission Project (‘TTP’). The VTL EPC contractor will be contracted to Sociedade Nacional de Transporte de Energia (‘SNTE’), a wholly owned subsidiary of EdM, who will construct, operate and maintain the VTL. A separate 110kV electrical transmission line (between Vilanculos substation and the Temane 110kV/33kV substation) will be developed by EdM connecting CTT to the EdM central grid and may be used under a limited commissioning scenario in the event of any TTP construction and commissioning delays. The 110kV line carrying capacity is limited to approximately 85 MW, a limited portion of the overall 450MW CTT production capacity. The CTT project viability is not reliant on the 110kV line and is therefore not an associated facility to the CTT project.Natural gas for the power plant will be supplied from the nearby Temane and Inhassoro gas fields, developed by Sasol Petroleum Mozambique and Empresa Nacional de Hidrocarbonetos E.P.. Partial flow of the LPG plant gas will go to the CTT project. The LPG project will be developed with or without the CTT project in place as its main purpose is production of LPG to third party customers. The gas fields and LPG plant project viability is not dependent on the CTT project and is therefore not an associated facility to the project. IFC has been an investee of the upstream gas production facilities since March 2006 (project #10983).In order to support the country’s growing energy requirements, the Government of Mozambique (‘GOM’) is seeking to develop its significant energy resources through several large scale power generation projects. To facilitate this, the Mozambique Integrated Transmission Backbone System (‘STE project’) was launched in 2011 as an integral part of the GOM’s energy planning. The TTP project, a ~561 km long 400 kV line connecting Vilanculos to Maputo, is the first phase development of the STE project and will be implemented by SNTE, supported by multiple development finance institutions including a World Bank International Development Association loan [P160427]. The TTP will be developed with or without the CTT project in place as it will serve multiple purposes and developments of the energy sector in the country and exports to the wider Southern Africa region. Thus, the TTP is not an associated facility to the CTT project.