03 June 2016
Kibo Mining plc (“Kibo” or the “Company”) (AIM: KIBO; AltX: KBO), the Tanzania focussed mineral exploration and development company is pleased to announce that feasibility work on the Mbeya Coal to Power Project (“MCPP”) has now advanced to a level where the Company can commence with the formal EPC-bid process for both the Mbeya Power Plant and the Mbeya Coal Mine.
On 31 May 2016 the Company met with SEPCO III in Dar es Salaam to initiate the EPC bid process for the Mbeya Power Plant, in accordance with the provisions of the Joint Development Agreement (“JDA”) in place between the Company and SEPCO III. The meeting in Dar es Salaam marked the official start of the EPC-bid process and will be followed by a two day work session in Brussels in mid-June. During this second work session, Tractebel Engineering will brief and guide SEPCO III on the EPC bid process and procedure in accordance with the relevant JDA requirements. The first step in this process will require SEPCO III to agree and commit to an equity investment in the MCPP in order to obtain the right to be the sole EPC bidder for the Mbeya Power Plant EPC contract.
In the event that SEPCO III is named as the sole bidder for the EPC contract, SEPCO III’s bid will remain subject to various pre-conditions related to price, technical standards, operational standards etc. which must be met for the EPC contract to be awarded. The bid process will take place under the control and supervision of Tractebel Engineering as independent Qualified Person and in accordance with a pre-set, internationally benchmarked specification and standard. If the bid succeeds in meeting the Tractebel Engineering specification it will also require that the bid terms are approved by the Company and any debt providers to the MCPP.
The EPC bid process for the Mbeya Coal Mine is also well under way and the Company will today receive the first EPC budget quotations from eight bidders who have expressed an interest to bid for the Mbeya Coal Mine EPC and mining contract.
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[ott_teaser btn_text=”Download” btn_icon=”icon-right-big” btn_url=”https://kibo.energy/wp-content/uploads/Final-RNS_MCPP-EPC_9th-Update_V3.0_030616.pdf” btn_target=”_blank”]Mbeya Coal to Power Project Commences with Formal EPC Bid Process for Mbeya Power Plant and Mbeya Coal Mine[/ott_teaser]