Aggreko wins $250m cross-border contract in Southern Africa

By Murray Pollok08 June 2012

The Aggreko depot in Cape Town

The Aggreko depot in Cape Town

Aggreko has won a US$250 million, two-year contract to supply a 107 MW power plant to be used by utility companies in South Africa and Mozambique.

The plant will be located at Ressano Garcia on the Mozambique/South Africa border and will use natural gas from Mozambique's Temane gas fields.

Aggreko said it is a ground-breaking contract in that power will be shared between the two countries, with Electricidade de Moçambique (EDM) taking 15 MW and South African utility Eskom utilising 92 MW.

Aggreko, which is in partnership with South African company Shanduka, said it was the first project by a private company to supply power cross-border to two utilities in Southern Africa.

The plant will start operations early in the third quarter of 2012 and supply power until July 2014. Aggreko will construct gas connections, a major substation and 1.5 km of 275 kV transmission line, working with the Matola Gas Company SA and Gigawatt Mozambique SA.

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."

Augusto Sousa Fernando, EDM's chief executive officer, welcomed the contract with Aggreko and said EDM would "provide the support required to make it a reality and to ensure that the energy to be generated by the project contributes to the construction of our future in Mozambique and supports the socio-economic development in the SADC region as well".

Hilary Joffe, Eskom spokesperson, said; "We are very supportive of this innovative cross-border project, and we look forward to the Ressano Garcia Plant coming on line early in the third quarter."

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