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Once completed, the project is set to deliver electricity to more than 800,000 people A contractual deadlock as well as turbines destroyed during a cyclone are two major obstacles the government of Mozambique is looking to overcome as it pushes for construction to continue on a key thermal energy project. Construction work on the Central Térmica de Temane or Temane Thermal Power Plant (CTT) has been interrupted as a result of a contractual impasse with the Spanish building contractor, TSK, the country’s state media agency Agência de Informação de Moçambique (AIM) reported recently. The thermal power plant is being built in the Inhassoro district, in the southern Mozambican province of Inhambane at a cost of $652.3 million. Temane Thermal Power Plant to meet electricity needs across Mozambique The Globeleq-led CTT 450MW gas-fired power project, will supply power to Electricidade de Moçambique (EDM) under a 25-year tolling agreement using natural gas supplied from the Pande-Temane Fields operated by Sasol and ENH, the state-owned hydrocarbon company. “CTT will deliver affordable electricity and boost the country’s capacity to provide more communities and businesses with electricity and will provide electricity to meet the demand of more than 800,000 consumers,” Globeleq said previously. CTT is a public-private partnership formed by the British energy company Globeleq, EDM and Sasol, which was granted a concession valid for 25 years, with the asset to be transferred to the Mozambican state at the end of the contract. Construction started in January 2022 and the first power was initially expected to be produced later this year. Deadlines on thermal project forced to be moved However, the contractual dispute with TSK could jeopardise commissioning deadlines, AIM reported. The construction work had been postponed from 2024 to 2025 for reasons beyond the control of the project’s executors, notably the cyclones that hit the country last March. The CTT project manager, Eucides Dgedge, told AIM that commissioning should begin between Q2 and Q3 of 2025 and the new plant’s operational start-up date was scheduled for 2 February 2026. But these dates are now subject to further postponement as a result of the interruption. “CTT is in the process of resolving a contractually sensitive situation with its Engineering, Procurement and Construction (EPC) contractor, TSK. “CTT assures its partners, employees, stakeholders and the public that it will take all relevant measures to protect the integrity of the project and that it is actively working to manage the situation,” he said. The project is around 80% completed with “the project’s activities continuing to be actively managed by the construction team.” “Measures are being implemented to protect the project’s schedule, safeguard critical activities and ensure that the standard of quality, safety and compliance is maintained,” he added. |
