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Kibo Energy renews MoU with Tanesco

Kibo Energy renews MoU with Tanesco

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Kibo Energy, a renewable-energy-focused development company, announced the signing of a renewed Memorandum of Understanding (MoU) with Tanzania Electric Supply (Tanesco) regarding the development of the Mbeya Power Project.

The project was first announced on February 14, 2018.

The company said the renewed MoU was an agreement between the parties on the process to agree and conclude a power purchase agreement (PPA) whereby Tanesco would purchase power with a capacity of 300MW from Mbeya Power, a subsidiary of Kibo.

“The objective of this MoU is to establish a general framework of collaboration and co-operation to enable the design, development, financing, construction, commissioning and operation of the Mbeya Power Project and its associated infrastructure. The MoU sets out clear guidelines, deliverables and time lines for the conclusion of a PPA and related implementation agreements,” Kibo said.

According to Kibo, the project is its initial flagship energy project based in Tanzania where the company aims to build a 300MW steam-powered power station in alignment with the Tanzanian Power System Master Plan (2020).

Kibo Energy CEO Louis Coetzee said: “We are delighted to see this robust flagship project revived.”

He said they were particularly excited to embark on this process and also to introduce its bio-fuel approach for evaluation as a possible substitute fuel source for the project which, if proven feasible, would convert the project into a carbon-neutral project, which could have far-reaching implications for similar utility-scale projects in southern Africa.

BUSINESS REPORT

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