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KIBO ENERGY PLC - Update on MCPP in Tanzania

Release Date: 02/11/2018 13:15
Code(s): KBO     PDF:  
Wrap Text
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: 02 November 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, notes today’s
public notice from the Tanzania Electricity Supply Company (‘TANESCO’) with regards to the ongoing tender
process as announced in the Company’s RNS’s dated 18 September and 19 October 2018 respectively. In
today’s notice, TANESCO announced that:


“This is to inform the general public that due to unavoidable circumstances and pursuant to Section 59 sub
section 2(f) of the Public Procurement Act 2011 and its amendment 2016, TANESCO with immediate effect has
cancelled the tender proceedings for the following invitations for qualifications Information (IFQs): - Tender
Ref. No. PA/001/2018-19/HQ/N/032 for Qualification of Large Solar Power Generating Projects, Tender
Ref. No. PA/001/2018-19/HQ/N/033 for Qualification of Coal Fired Generating Projects and PA/001/2018-
19/HQ/N/034 for Qualification of Large Wind Power Generating Projects.


The abovementioned Tenders have been cancelled and remain annulled with immediate effect.


The Management is working on next cause of action to execute these Tenders.


Any inconvenience that might be caused by this Notice is highly regretted.


THE MANAGING DIRECTOR TANZANIA ELECTRIC SUPPLY COMPANY LTD”


It is the Company’s understanding upon further enquiry that the tender, asking for an undertaking to do a
feasibility study, finance, build, own, operate and transfer coal power projects of a capacity not less than 150MW
and not more than 300 MW in one location (See RNS’ referenced above), is definitely still going ahead and not
affected by today’s TANESCO announcement. There are however certain procedural amendments required to
the process before the tender can proceed. It is expected that these procedural amendments will be announced
shortly and without any effect on the expected timeline for completion of the tender process.


Louis Coetzee, CEO of Kibo, said, “Today’s TANESCO announcement is unfortunate but not out of the
ordinary for a complicated tender process of this nature. We are looking forward to resuming the tender process
shortly. In a rather curious manner the Company welcomes the brief respite in respect of the MCPP process
allowing us to bolster our efforts in Botswana and Mozambique where multiple work streams are constantly
gaining in momentum to see the ongoing technical studies and PPA negotiations for the MCIPP and BPPP
completing ahead of schedule. Significant progress has also been made over the past weeks with regard to
power off take agreements for the respective projects during meetings with potential power off takers. We are
also very pleased with progress on advancing the reserve power projects under Mast Energy Developments
over the past two weeks.”


                                                   **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
                                                                                  Corporate and Designated
  Andreas Lianos            +27 (0) 83 4408365        River Group
                                                                                  Adviser on JSE
  Ben Tadd /Tom Curran +44 (0) 20 3700 0093           SVS Securities Limited      Joint Broker

  Jason Robertson            +44 (0)20 7374 2212      First Equity Limited        Joint Broker

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

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


Notes to editors
Kibo Energy PLC is a multi-asset, Africa focused 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
02 November 2018
Corporate and Designated Adviser
River Group

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