18 December 2017

Kibo Mining Plc (AIM:KIBO; AltX:KBO), the multi-asset African focused energy and resource company, is pleased to announce that the newly formed Tanzania Ministry for Energy (‘The Ministry’) has committed to an indicative timeline for the completion of the MOU for the fast-tracking of the Mbeya Coal to Power Project (‘MCPP’).

Overview

  • Positive briefing between Kibo, General Electric (‘GE’), the Tanzania Electric Supply Company (‘TANESCO’) and the Deputy Minister for Energy (‘The Deputy Minister’) on 14 December 2017 and subsequent follow-up meeting between Kibo and the Deputy Minister;
  • Discussed strategic importance of the MCPP within the successful and expeditious execution of the Tanzanian energy strategy and establishing targeted deliverables towards its implementation;
  • MCPP viewed as the most advanced Independent Power Producer (‘IPP’) coal power project in the Tanzanian generation projects pipeline and expected to make a significant contribution towards achieving the 2020 targets and beyond, through further development of MCPP Phases II and III;
  • Full support for the MCPP: focus on signing MOU with TANESCO within the  next  10  to  12 working days; and agreeing a final Power Purchase Agreement (‘PPA’) during Q1 2018;
  • Confirmation that priority generation projects are being fast-tracked as the Tanzanian Government targets the delivery of 5GW installed generation capacity by 2020, with a further 7GW to be added in the following five years (EWURA, 2016, p 47).

Kibo’s CEO, Louis Coetzee, said: “Our focus on positioning Kibo as  a  strategic  regional  electricity supplier gained further momentum as we continue to strengthen our relationships  with  TANESCO,  the Ministry of Energy, and General Electric for assisting in the structure and implementation of the country’s new energy policy and the resultant fast-tracking and development of the MCPP.  We were delighted with the commitment to sign a MOU within 10 to 12 working days and the prospect to finalize the PPA in Q1 2018, which will allow us to materially advance the project level financing talks we have been conducting.  I understand that there has been frustration with the delays we have been experiencing, however we believe these latest very positive outcomes reiterate the strong commitment from all the MCPP stakeholders to see the MCPP come to fruition in the shortest possible time, given the complex procedural and bureaucratic environment of the current development phase of the MCPP.”

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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-15th-Update_MOU_V3.5_181217.pdf” btn_target=”_blank”]Mbeya Coal to Power Project MOU and PPA Update[/ott_teaser]