SCOTTISH company Aggreko is to undertake a project worth about $250 mil-lion (£162m) over two years to supply power to South Africa and Mozambique, in a joint venture with local partner Shanduka Group.
Shares in Glasgow-based Aggreko rose 50p or 2.35% to £21.77 yesterday after the project's announcement, while the FTSE-100 share index leapt 123.92 points to 5384.11.
Aggreko and South African company Shanduka have agreed deals with Eskom, the South African power utility, and Electricidade de Moçambique (EDM), the Mozambique power utility, to provide a 107-megawatt power plant that will supply baseload and peak power to both companies. EDM will utilise 15 MW of the capacity and Eskom 92MW.
The estimated $250m value of the contract over two years includes the cost of fuel.
The power plant will be on the Mozambique-South Africa border at Ressano Garcia, 90 kilometres north-west of Maputo. It will be powered by natural gas from the Temane gas fields in Mozambique. Its output will go into the national grid of Mozambique at Ressano Garcia.
Aggreko said the project was thought to be the first by a private company to supply power cross-border to two utilities in southern Africa.
Rupert Soames, chief executive of Aggreko, said, "This is a very important project for Aggreko, and for southern Africa, as it underlines the benefits of countries working together for the common good."
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