Tanzania moves to fast-track power project

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Tanzania moves to fast-track power project

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Published Date: 2018-01-08 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tanzania moves to fast-track power project

Kibo remains optimistic that a memorandum of understanding is imminent

Tanzania's Ministry of Energy has called Kibo Mining to a meeting today to finalise a memorandum of understanding (MOU) on the Mbeya Coal to Power Project (MCPP), forcing it to pull out of a conference in London this week. It says getting the coal and generation project off the ground takes precedence. The Tanzanian Electric Supply Company will also be present at the meeting.

The energy and resources company says it's optimistic that the MOU for the project will be completed as announced last month. The project entails developing a coal mine along with a 300-megawatt power station at the mine mouth. It's being developed in partnership with China's Sepco III.

Analysts say the MCPP is viewed as the most advanced Independent Power Producer project in the Tanzanian energy strategy pipeline and is expected to make a significant contribution towards achieving the country's energy targets.

It's good to see the urgency of all stakeholders involved with the goal to fast-track the MCPP towards finalisation," Top Aim Stocks said in a note on Friday. "We look forward to the details of the agreement which will be the precursor to the crucial (Power Purchase Agreement). In the meantime, we maintain a Speculative Buy on the stock."

Kibo says it expects to finalise the MOU and the final Power Purchase Agreement during the first quarter of this year.

The company's shares ended unchanged at R1.07 on Friday.



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