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KIBO ENERGY PLC - Update on MCPP in Tanzania

Release Date: 26/09/2018 08:00
Code(s): KBO     PDF:  
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Update on MCPP in Tanzania

Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
(“Kibo” or “the Company”)


Dated: 26 September 2018


                               Kibo Energy PLC (‘Kibo’ or the ‘Company’)
                                       Update on MCPP in Tanzania

Kibo Energy PLC (“Kibo” or the “Company”), the multi-asset, Africa focused, energy company, is pleased to
announce that, further to the announcement dated 16 August 2018, the Company has noted that the Mbeya
Coal Mine, which comprises the mining component of the Mbeya coal to Power Project (“MCPP”), has been
recommended for grant of a Special Mining Licence from the Mining Commission of Tanzania (see also
Tanzanian Ministry of Minerals announcement at: http://tumemadini.go.tz/download/orodha-ya-special-
mining-licence/)


Additionally, further to the announcement dated 18 September 2018, Kibo has now also submitted the request
to the Tanzania Electricity Supply Company (“TANESCO”) asking for further clarification on the impact /
affect the tender process for coal power projects may or may not have on its ongoing Power Purchase Agreement
(“PPA”) negotiations with TANESCO in respect of the Company’s MCPP in the Songwe district in South
Western Tanzania.


In the meantime, the Company has engaged in the tender process and has already obtained the relevant
documentation for submission of the tender qualification as stipulated in the Invitation for Qualification
(“IFQ”). The Company’s current understanding of the broad technical criteria outlined in the tender
documentation, shows that Kibo qualifies on each of these aspects and is at a significantly more advanced
development stage with regard to most of the minimum requirements contained therein.


Louis Coetzee, CEO of Kibo, said, “Receipt of the Special Mining Licence will be a further box ticked in the
MCPP’s development plan. Whilst timelines could be affected by TANESCO’s recent initiation of a tender
process, the strong fundamentals of the project remain unaffected: the MCPP is a key energy project positioned
to help alleviate Tanzania’s acute power deficit. With local, governmental and international support, we remain
focused and confident on advancing the project through the very last steps of the planning and development
phase to first power production. We believe we remain firmly on course to deliver the MCPP and our two other
utility scale projects in Botswana and Mozambique respectively.”
                                               **ENDS**


This announcement contains inside information as stipulated under the Market Abuse Regulations (EU) no.
596/2014 ("MAR").


 For further information please visit www.kibo.energy or contact:


  Louis Coetzee             info@kibo.energy           Kibo Energy PLC             Chief Executive Officer
  Andreas Lianos            +27 (0) 83 4408365         River Group                 Corporate and Designated
                                                                                   Adviser on JSE
  Ben Tadd /                +44 (0) 20 3700 0093       SVS Securities Limited      Joint Broker
  Tom Curran
  Jon Belliss               +44 (0) 20 7399 9400       Novum Securities Ltd        Joint Broker

  Andrew Thomson            +61 8 9480 2500            RFC Ambrian Limited         NOMAD on AIM

  Isabel de Salis /         +44 (0) 20 7236 1177       St Brides Partners Ltd      Investor and Media
  Gaby Jenner                                                                      Relations Adviser


 Notes to editors
 Kibo Energy PLC is a multi-asset, Africa focussed, energy company positioned to address the acute power
 deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end,
 it is the Company’s objective to become a leading independent power producer in the region.


 Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project
 (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana; and the Benga
 Independent Power Project (‘BIPP’) in Mozambique. By developing these projects in parallel, the Company
 intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement,
 equipment, human capital, execution capability / capacity and project finance. Additionally, the Company will
 benefit from its robust and experienced international blue-chip partnership network across its project portfolio,
 which includes: SEPCO III (China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon
 Consulting (South Africa); ABSA / Barclays Africa; and Hogan Lovells International LLP.


 Johannesburg
 26 September 2018
 Corporate and Designated Adviser
 River Group

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