The turnkey engineering, procurement, and construction (EPC) agreement with state power company Electricidade de Mozambique (EDM) is for a 110MW gas-fired combined-cycle power plant 6km southeast of the capital, Maputo.
This order is valued at about 17 billion yen (£105m), which will be covered by loans from the Japan International Cooperation Agency (JICA).
It will be the country’s first gas-fired combined-cycle power plant. Sumitomo Corporation as consortium leader will serve as the liaison for negotiations and coordination with EDM while IHI will supply the gas turbines and generators.
Construction is set to begin this year with the aim of handing the power plant over to EDM in 2018.