Africa-focused, energy and resource firm, Kibo Mining, has reached the final phase of discussions regarding the Power Purchase Agreement (PPA) for the Mbeya Coal to Power Project (MCPP) with the Tanzania Electric Supply Company (TANESCO).
This phase was reached after submitting a reformatted Integrated Bankable Feasibility Study (‘IBFS’) in accordance with the agreed amended PPA-process.
The Company explained that it has previously compiled an extensive IBFS, which has been commended by TANESCO, that consisted of nine chapters with a variety of technical reports, including:
• the financial model and report;
• the definitive feasibility study (power);
• the environmental and social impact assessment report;
• the competent persons report on the MCPP mineral resource;
• an extensive geotechnical report;
• a report on aquifer testing and numerical flow modelling, geohydrological investigation, hydrological study, topographical analyses and digitised topographical mapping;
• the definitive feasibility study (mining); and
• grid inception report
However, TANESCO requested that the Company reformat the IBFS into its own preferred structure and format, which added considerable time to the PPA process. Read more: Tanzania: Kibo Mining enlists shares to raise funds for coal project
Notably, the content remained unchanged. The reformatted IBFS was resubmitted to TANESCO today and the final commercial discussions on the PPA are expected to conclude expeditiously following submission of the reformatted IBFS.
Kibo’s CEO Louis Coetzee said: “Whilst the negotiations regarding the PPA for the MCPP have taken longer than we anticipated, it is important to understand that this agreement represents a coal fired power project of a magnitude never dealt before by TANESCO. We are hopeful that having completed the reformatted IBFS we can conclude negotiations on the MCPP PPA soon.”
Coetzee added: “We remain committed to advancing this project, in tandem with our other two major energy projects located in Botswana and Mozambique, which like Tanzania, suffer acute energy deficits that hamper economic development. With our own team, as well as strong partnerships, we look forward to building our position as a leading African-focused energy provider.”