Coal miner Ncondezi Energy Ltd and state-owned China Machinery Engineering Corp. (CMEC) have agreed to sign by September 30 the an engineering, procurement, construction contract for a 300 MW coal-fired power station in the northern Mozambican province of Tete.

Ncondezi Energy Chief Executive Hanno Pengilly regards the agreement as a big step forward, according to a written statement issued by his company on Monday.

Mr Pengilly said CMEC had helped Ncondezi Energy overcome obstacles to progress erected by precautions against COVID-19.

The statement quotes the CMEC project director, Zhang Daguang, as saying his company, the Chinese government and banks are looking at several proposals for paying for the project.