(Ecofin Agency) - Ncondezi Energy secured a $3 million from the African Finance Corporation (AFC) to develop its Ncondezi coal-powered power station in the Tete province, in Mozambique.

The loan will be used to pay charges which are not included in the joint development agreement signed between Ncondezi Energy and Shanghai Electric Power (SEP). Under the agreement, SEP may acquire up to 60% of interests in the firm, against $25.5 million to finance to Ncondezi project.

The loan is to be reimbursed in two tranches, the first of $1 million in 2017 and the other, $2 million, 24 months later.

The Ncondezi coal-powered station can produce 300 MW of power.

Louis-Nino Kansoun