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Kibo Energy moves closer to landing permits for Tanzania coal-to-power project

Published: 02:28 26 Sep 2018 EDT

power on
Talks over a power purchase agreement and a tender process are underway

Kibo Energy PLC (LON:KIBO) told investors that it moved closer to securing permits for the Mbeya coal to Power Project (MCPP) in Tanzania.

The company, in a statement, revealed that the mining element of the project had now been recommended for a special mining licence from Tanzania’s mining commission.

"Receipt of the special mining licence will be a further box ticked in the MCPP's development plan,” said Louis Coetzee, Kibo chief executive.

“Whilst timelines could be affected by TANESCO's recent initiation of a tender process, the strong fundamentals of the project remain unaffected: the MCPP is a key energy project positioned to help alleviate Tanzania's acute power deficit.”

READ: US industry giant to help Kibo develop its energy projects

The company said it has now asked the Tanzania Electricity Supply Company (TANESCO) for ‘further clarification’ regarding the potential impacts of a new tender process for coal power projects on its ongoing negotiations for a power purchase agreement.

It has now, nonetheless, engaged in the tender process and has obtained the relevant documentation for submission of the tender qualification.

The company also noted that Kibo qualifies on each of the broad technical criteria outlined in the tender documentation, and, it is at a ‘significantly more advanced development stage’ for most of the minimum requirements.

Coetzee added: “With local, governmental and international support, we remain focused and confident on advancing the project through the very last steps of the planning and development phase to first power production.

“We believe we remain firmly on course to deliver the MCPP and our two other utility-scale projects in Botswana and Mozambique respectively."

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