Update on MCPP in Tanzania

RNS Number : 1942G

Kibo Energy PLC

02 November 2018

 

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	[e-mail]	Kibo Energy PLC	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate and Designated Adviser on JSE
Ben Tadd /Tom Curran	[phone]	SVS Securities Limited	Joint Broker
Jason Robertson	[phone]	First Equity Limited	Joint Broker
Andrew Thomson	[phone]	RFC Ambrian Limited	NOMAD on AIM
Isabel de Salis / Gaby Jenner	[phone]	St Brides Partners Ltd	Investor and Media 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

 

END

 

 

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