In East Africa, Nava Bharat Ventures Ltd, a diversified organisation with interests in power generation, ferro alloys, mining and agri-business, announced on Wednesday that its step-down subsidiary Maamba Collieries’ Ltd (MCL) integrated coal and power project has reached financial close.
The Zambian coal power project, which is funded on a debt equity ratio of 70:30, is estimated at a total cost of $828 million (ZAR10 billion), live mint reported.
Nava Bharat said: “Large international lenders group, comprising development financial institutions from South Africa and large international commercial banks from Africa and China, have participated in this limited project finance deal.”
Coal fired power plant
The project includes the development of a 300MW coal-fired power plant, which will be integrated with captive coal mining, dedicated water supply system and an exclusive 330 kV power transmission line.
Nava Bharat (Singapore) Pte Ltd, a wholly-owned subsidiary of Nava Bharat, holds 65% of the equity stake in MCL and the balance is held by the ZCCM Investments Holding, live mint reported.
Nava Bharat will be investing an estimated $150 million (ZAR2 billion) to form part of its equity share.
According to power company, the coal power project is scheduled for commissioning by mid-2016 from when Nava Bharat will be responsible for the operation and maintenance of the power plant.
According to Nava Bharat management, MCL had signed a 20-year power purchase agreement to supply 100% of the power plant’s generation capacity to Zambia Electricity Supply Corporation.