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Parallel to the feasibility study, the institutional framework for implementation of the Project is being developed.
The Project will be developed in the private sector and the Government of the Republic of Mozambique (GRM) intends to award a build, own, operate, and transfer (BOOT) concession to a developer through a company established in Mozambique specifically for the implementation and operation of the Project (Project Company). Depended
on the preferences of the developer and after discussions with GRM,
two Project Companies could be established, one for generations
(hydropower plant) and one for transmission.
GRM will enter into a Project Agreement with the Project Companies for development, construction and operation of the Project for a given period of time (concession period). Separate Tax Agreement, Environment
or Monitoring Agreements are envisaged.
Based on the Concession and the Project Agreement, the Project
Companies will arrange development of the Project to financial closing, (i.a. establish the cost of the project through tendering for construction, the terms for sale of power (PPAs) and financing), construct and operate the project.
Phases leading to formation of Project Companies and Financial Closing
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Promotion of the Project will start in May of 2002 with the Investor
Conference and circulation of a Project Promotion Document. It invites interested parties to submit a pre-qualification as majority shareholder of the Project Company. Following review of the pre-qualification documents, a limited number of the candidates considered qualified for implementation of the project will be invited for competitive negotiations for implementation. Dependent on the response from interested parties, such negotiations are expected to start in the second half of 2002.
The Project Company is expected to be incorporated immediately following successful negotiation.
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