Aggreko Power Plant to Supply 107.5 MW to South Africa & Mozambique

Aggreko Inaugurates Project to Supply Power to South Africa & Mozambique

Mozambique, 18 July 2012: Aggreko, along with its joint-venture partner Shanduka Group, has officially opened and delivered power from its 107.5 MW interim gas-fired power station at Gigawatt Park in Ressano Garcia, Mozambique. The project was inaugurated by the President of the Republic of Mozambique, His Excellency Armando Emilio Guebuza, during a ceremony held today at the project site.

The project is the result of a Power Purchase Agreement (PPA) that Aggreko have signed with Electricidade de Moçambique (EDM), the Mozambique power utility and with Eskom, the South African power utility. The project will produce 107.5 MW of power to supply baseload and peak power to both companies until July 2014.

The power station is situated in Ressano Garcia on the Mozambique / South African border, 90 kilometres north-west of Maputo at Gigawatt Park, a development of Gigawatt Mozambique S.A. It is powered by natural gas from the Temane gas fields in Mozambique and its output is being injected directly into the national grid of Mozambique/ EDM on site via a purpose built substation. The power generated at the plant is being split between the two utilities, with EDM utilising 15 MW and Eskom 92.5 MW.

This is a ground-breaking project by a private company to supply fast–track, cross-border power to two utilities in Southern Africa, and it underlines the potential benefits that can accrue to countries sharing resources. Both countries will get much needed additional power, and the project also underlines the importance of Mozambique as an energy hub for the entire Southern African region.

Aggreko has invested in the construction of a number of significant infrastructure projects to bring the overall project to fruition. This includes the building of a 1.2 km high pressure gas pipeline, gas processing and de-pressurising infrastructure, a major substation and 1.5 kilometres of 275 kV transmission line. The construction and commissioning of the entire project has been delivered in the space of 14 weeks. The fast-track deployment of significant power generation infrastructure of this type is a hallmark of Aggreko’s worldwide operations.

Rupert Soames, Chief Executive of Aggreko said, “This is a very important project for Aggreko, and for Southern Africa, as it underlines the benefits of countries working together for the common good.  We hope it will be a pathfinder for other countries seeking to make the most of their resources to optimise the supply of power across the region.”

“While this is a temporary power solution to meet the immediate needs of South Africa and Mozambique, it is likely to have a lasting impact. It provides an excellent model for public-private partnership and cross-border collaboration that can be used as a benchmark for future ventures.” said Cyril Ramaphosa, Executive Chairman, Shanduka Group.

As part of the social development plan which will run alongside the project, Shanduka will bring its successful Adopt-a-School programme to Mozambique with the sponsoring of a local primary school in Ressano Garcia. “The adoption of the Escola Primaria Completa school will result in a significant improvement in the learning environment at the school over the next five years and will leave a lasting, positive legacy in the local community,” continued Ramaphosa.

“EDM, in its role as the national power utility and system operator in Mozambique provided the support required to make the Aggreko Ressano Garcia project a reality,” commented Augusto Sousa Fernando, Chief Executive of EDM. “By adding fast-track, additional power to the national grid, EDM is directly contributing to the development of Mozambique while at the same time supporting the socio-economic development of the wider SADC region”.

Brian Dames, the Chief Executive of Eskom, said: “We are pleased that we are now receiving power from this innovative cross-border project. Our relationship with Mozambique is very important to Eskom, and we are keen to see more cross-border projects in the region.”