Kibo Mining Plc (Kibo), the multi-asset Africa-focussed energy and resource company, has recently signed a Memorandum of Understanding with the Tanzania Electric Supply Company (TANESCO) for the Power Purchase Agreement (PPA) of the company’s flagship 300 MW Mbeya Coal to Power Project (MCPP). MCPP is Kibo’s flagship project based in Tanzania, where the company intends to build a 300 MW mine-mouth power station to alleviate the acute energy deficiency in the country.
According to Kibo, the MoU represents the precursor to the finalisation of the PPA with TANESCO which is expected to be finalised as early as the end of 1Q18, in accordance with the timeline previously agreed with TANESCO and the Ministry of Energy.
The MoU sets out clear guidelines, deliverables and timelines for the conclusion of the PPA. The PPA will enable Kibo to move towards execution and conclusion of the final development phase of the MCPP, which will involve construction and commissioning. The company hopes to complete funding arrangements for the construction and commissioning of the MCPP during H2 2018, after which Kibo believes it can be in production in 36 months.