Aggreko grabs power contract in southern Africa

The temporary power company, Aggreko, has signed a deal which will see it build a power station supplying both South Africa and Mozambique.

Aggreko has agreed terms with Eskom, the South African power utility, and Electricidade de Moambique (EDM), the Mozambique power utility, to provide a 107 megawatt (MW) power plant that will supply base-load and peak power to both companies. The total value of the project is likely to be in the region of $250m over two years, including fuel costs.

The power plant will be situated on the Mozambique / South African border at Ressano Garcia, 90 kilometres north-west of Maputo. It will be powered by natural gas from the Temane gas fields in Mozambique and its output will be injected into the national grid of Mozambique on site at Ressano Garcia.

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The output of the plant will be split between the two companies, with EDM utilising 15 MW and Eskom 92 MW.

Operations are due to start in the third quarter of 2012, with supplies continuing up to 2014, while the total value of the project is expected to be around $250m.

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."

Aggreko shares had risen 0.66% by 12:29.

BS