Ncondezi inks master services deal with Synergy Consulting

Ncondezi Energy has signed a master services agreement with Synergy Consulting, it announced on Thursday, to provide financial and transaction advisory services for the 300MW solar photovoltaic and battery energy storage system (BESS) project in Tete, Mozambique.

The AIM-traded firm said the agreement would cover potential advisory services to accelerate the project's delivery up to financial close.

It would include finalising power tariffs with potential offtakers, as well as key agreements, and negotiations with project lenders for debt financing, in addition to capital raising for Ncondezi's equity contribution towards the solar project at financial close.

Ncondezi described synergy as a “leading global power financial services provider” that had successfully achieved financial close on more than $70bn of projects with “significant experience” in Mozambique, supporting its largest energy projects in recent years.

It was already familiar with Ncondezi and the solar project, having acted as financial advisor on various mandates for the company since 2016.

Services would also include potential due diligence and capital raising support for additional expansion renewable energy projects.

The board said the agreement’s structure would provide “flexibility” for Ncondezi to approach each work stream and applicable fee on a case-by-case basis, within a capped fee structure.

“As we continue to make good progress on our 300MW solar photovoltaic project, Synergy's appointment ensures access to world class resources to achieve the next set of development goals and further enhance the company's value proposition,” said chief executive officer Hanno Pengilly.

“Synergy is well placed to assist the company having worked closely on the solar project since inception as well as being involved in some of the largest delivered and under-development power projects in Mozambique.”

Pengilly said the services provided would require approval by the company on a workstream-by-workstream basis, allowing it to “efficiently manage” cash flows.

“With the solar project feasibility study in near final form including an advanced form competitive tariff proposal, the company has initiated power offtake discussions with potential offtakers and submitted its preferred transmission connection to supply power to the grid for approval with the relevant local authorities.

“We look forward to providing updates on these work streams during the first quarter.”

Reporting by Josh White for Sharecast.com.