Kuvaninga Energia power plant

Active

Prospective

In December 2013, the 40.29MW Kuvaninga Energia gas-fired power plant reached financial closure in Mozambique. The sponsors of the project were Investec Bank, Eventure Partners and KDM. The developers funded the roughly $99 million project through $74 million in debt financing, provided by Investec and the Industrial Development Corporation (IDC), and around $25 million in equity. The three sponsors developed the project and brought it to financial close, at which point Investec and Eventure Partners sold down their combined 75% equity stake. The equity breakdown following financial close is as follows: KDM (comprising several Mozambican companies and individuals) – 25% Public Investment Corporation – 30.6% Kastel Group (a local subsidiary of US-based Eventure Partners) – 28% Pele Clean Energy – 16.4% The debt had a tenor of 13 years and three months, and splits into two tranches. Investec was providing a $40 million facility with cover from an unnamed export credit agency (ECA). This portion would draw down on 28 February. A smaller direct loan of $34 million, which draws down on 31 January, came from Investec ($11 million) and IDC ($23 million). Both facilities had semi-annual repayment schedules with 27-month grace periods. The financing had a debt service coverage ratio of 1.34x and a loan life coverage ratio of 1.37x. Group Five was responsible for engineering, construction and maintenance for the plant, which was scheduled to begin operations in the second quarter of 2015. The plant was located in Chokwe, in Gaza Province, next to the natural gas pipeline co-owned by Sasol and the government of Mozambique. The sponsors had a 16-year power purchase and concession agreements with state utility Electricidade de Moçambique, which would supply the plant with gas until 2029, at which point it took control of the asset. ADC Projects would operate the site over the length of the concession, and GE Jenbacher is equipment supplier

Energy

World Bank Group

Project

Natural Gas, Government, Manufacturing (Industrial), Power Transmission, Power Generation (CCGT), Commercial