Africa investor (through its Ai Capital) has been mandated as the sole advisor to sell a minority equity stake in Nava Bharat (Singapore) Pte Ltd. (“NBS”) (the “Proposed Transaction”). NBS has a majority shareholding in an operating 300 MW coal fired power plant with an integrated coal mine in Zambia. NBS is a wholly owned subsidiary of Nava Bharat Ventures Limited (“NBVL”). NBVL is listed on the BSE Ltd (“BSE”) and National Stock Exchange of India Ltd (“NSE”)
- Maamba Collieries Limited (“MCL”), incorporated in 1971, is the largest coal mining company in Zambia and houses the 300 MW power plant
- The Government of Zambia (“GoZ”) successfully privatised MCL in 2008 with NBS purchasing a 65% stake in MCL and ZCCM (a government entity) retaining the 35% balance
- As part of the Proposed Transaction the new investor will become a c. 20% shareholder in NBS
- The new investor will benefit from the existing operating plant and can participate in the planned expansion to 600 MW, which is a government imperative to alleviate the country’s power deficit.
Strategically important Project
- Zambian power generation capacity is overwhelmingly dominated by hydro power at present
- The development of a coal fired power generation capacity is strategically important to diversify the generation mix
- The country is currently facing a power deficit of c. 560 MW and the expansion will largely contribute to meeting this demand supply gap
- In addition, the Project provides an opportunity to monetize hitherto unutilized coal reserves in the country
The 300 MW coal based power plant (the “Project”) has:
- Been in operation since Q4 2016 and supplies power to ZESCO Ltd (“ZESCO”) under a Power Purchase Agreement (“PPA”)
- A 20 year United States Dollar (“USD”) based PPA signed with ZESCO backed by an escrow arrangement with a large mining customer for collection of receivables
- The current 300 MW (2 x 150 MW) power plant which is the first phase of the power project
- The potential to be expanded to 600 MW through the addition of an additional 300 MW (2 x 150 MW)
- Proven coal reserves and existing infrastructure to support the planned additional 300 MW
Experienced developer with a proven track record of project delivery
- Strong power project development team with over 20 years of in-house expertise in development, operation and maintenance of coal fired plants in emerging markets predominantly in India and Africa
- NBS’s parent company owns and operates four power plants in India with a total capacity of c. 451 MW
- Are one of the first private developers to successfully bring to operation a coal fired power plant in Southern Africa
