The newly-formed Tanzania Ministry for Energy has committed to an indicative timeline for the completion of a memorandum of understanding for fast-tracking development of the Mbeya coal to power project owned by Kibo Mining PLC (LON:KIBO).
A briefing was held between Kibo, General Electric (GE), the Tanzania Electric Supply Company (TANESCO) and the Deputy Minister for Energy on 14 December 2017. There was also a subsequent follow-up meeting between Kibo and the Deputy Minister.
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The strategic importance of Mbeya was discussed, and full support offered. The focus will now be on signing an MOU with TANESCO within the next 10 to 12 working days and agreeing a final Power Purchase Agreement during the first quarter of 2018.
The meeting also provided confirmation that priority generation projects are being fast-tracked as the Tanzanian Government targets the delivery of 5GW installed generation capacity by 2020, with a further 7GW to be added in the following five years.
"Our focus on positioning Kibo as a strategic regional electricity supplier gained further momentum as we continue to strengthen our relationships with TANESCO, the Ministry of Energy, and General Electric for assisting in the structure and implementation of the country's new energy policy and the resultant fast-tracking and development of the MCPP,” said Kibo chief executive Louis Coetzee.
“We were delighted with the commitment to sign a MOU within 10 to 12 working days and the prospect to finalize the PPA in Q1 2018, which will allow us to materially advance the project level financing talks we have been conducting.
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"I understand that there has been frustration with the delays we have been experiencing, however we believe these latest very positive outcomes reiterate the strong commitment from all the MCPP stakeholders to see the MCPP come to fruition in the shortest possible time, given the complex procedural and bureaucratic environment of the current development phase of the MCPP."