Tancoal coal
Wikimedia
Dual-listed Kibo Mining has been in engagement with the Tanzanian Government and TANESCO to conclude the updated MoU to fast-track the Mbeya coal to power project.

All stakeholders have recognised that the development and implementation of a power purchase agreement (PPA) for the Mbeya coal to power project must be expedited quickly given the significant delays over the past year, as well as the strategic importance of the Mbeya coal to power project.

As a result, all parties have agreed to replace the original MoU and update it to streamline the process for conclusion of the PPA.

[quote]This updated MoU has subsequently been approved and confirmed in writing by the board of TANESCO, and authorised for immediate implementation.

Accordingly, the approved updated MoU has now been submitted to all other concerned parties, i.e. Ministry of Energy and the Attorney General, for endorsement before final signing by Kibo and TANESCO.

This remaining administrative process is already underway, and the Kibo board believes it will be completed imminently.

Kibo anticipates providing further information on the material details of the updated MoU and the expedited time lines therein once the updated MoU has been fully executed.

“This agreement underlines the recognition by all stakeholders that the Mbeya coal to power project is of national importance and that there was a need to define a faster process to reach formal agreement on a PPA via the MoU,” says Kibo Mining CEO, Louis Coetzee.

“Both the Ministry of Energy and TANESCO recognise the importance of reaching a final PPA for the Mbeya coal to power project as soon as practically possible and that the delays in the finalisation of the MoU and subsequent PPA had to be addressed by a reassessment of the conditions precedent to ensure that the PPA is expedited and crystallised for the benefit of all stakeholders.

In the confirmation letter received, TANESCO emphasised the strategic importance of the Mbeya coal to power project, as well as their support and full commitment to ensure that the expedited timelines in the updated MoU, along which the PPA is to be agreed and finalised, are indeed met.

“We continue to work with all parties, including SEPCO III and GE to execute the milestones associated with Mbeya coal to power project and I would like to thank all our shareholders and stakeholders for their support and look forward to updating them on further developments as we progress and build value for them and Tanzania.”

Feature image credit: Wikimedia