Thursday , February 22 2024

Tanesco to seal power purchase agreement with Kibo

Kibo Mining has almost concluded securing project financing for its Mbeya coal-to-power project (MCPP) in Tanzania.

The development comes at the backdrop of ongoing power purchase agreement negotiations with Tanzania power utility Tanesco.

The company has passed all the relevant legislative stages and is awaiting final confirmation from Tanzania’s Attorney General.

Once signed, the MoU will provide a fixed framework within which the fundamental commercial and technical components of the PPA will be negotiated and agreed.

Meanwhile, Kibo is also in advanced negotiations with potential project level investors, after several international engineering, procurement and construction companies, power infrastructure developers and financing conglomerates expressed an interest in providing full project level equity funding for the MCPP.

“Having so many global powerhouses expressing a keen interest to partner with us is a fantastic validation of Kibo, the work we’ve done at the MCPP and the inherent value of the project.

“With the final negotiation of the PPA approaching, full feasibility studies complete and development finance on its way to being secured, this nationally significant project is reaching a tipping point that I believe will see stakeholders rewarded,” Kibo Chief Executive Officer Louis Coetzee said.

The MCPP includes a planned 1.5-million-tonne-a-year coal mine and a 300 MW mine-mouth power station.

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