Neoen’s $56 Million Solar Plant In Mozambique Development And Financing

Linklaters has advised French renewables company Neoen on the development and financing of a 41 MW solar photovoltalic power plant located in Cabo Delgado, Mozambique.

The project represents a $56 million investment, of which $40 million will be provided in the form of debt by Agence Française de Développement (AFD) and its subsidiary Proparco. Efacec, a Portuguese group established in Mozambique for several decades, will build the facility.

This is the solar project with the highest installed capacity to reach financial close in Mozambique and is an important milestone in the country’s energy strategy. The energy produced by the Metoro Power Plant is sold under a long term Power Purchase Agreement to EDM, Mozambique’s electricity utility and also a sponsor of the project.

The power generated by the facility, which is due to enter service in late 2020, will be delivered at Metoro (Ancuabe district), the main transmission and distribution substation in northern Mozambique. It will supply the national grid and boost the power grid in the Provinces of Cabo Delgado and Nampula.

Neoen is a renewable energy company headquartered in Paris, France. It owns and operates solar and wind farms in 13 countries on four continents.

The Linklaters team was led by partners Francisco Ferraz de Carvalho (Picture) and Francois April (Paris). The core members of the team included Alex Bluett (managing associate, Paris), Samuel Bordeleau (managing associate, Paris), Rita Ferreira dos Santos (senior consultant, Lisbon) and Laura Vicente (associate, Lisbon).

Involved fees earner: François April – Linklaters; Alex Bluett – Linklaters; Samuel Bordeleau – Linklaters; Francisco Ferraz de Carvalho – Linklaters; Laura Vicente – Linklaters;

Law Firms: Linklaters;

Clients: Neoen SA;