Kibo Energy reports progress on Mbeya Power Project deal

Shares in renewable power developer Kibo Energy surged on Thursday, after it updated the market on its Mbeya Power Project (MPP).

The AIM-traded firm issued a renewed memorandum of understanding on 23 November last year, which outlined the clear guidelines, deliverables, and timelines for the conclusion of a power purchase agreement and related implementation agreements between Kibo’s subsidiary Mbeya Power and the Tanzania Electric Supply Company (Tanesco).

Over recent months, Mbeya Power and representatives of Tanesco had engaged in several meetings to discuss the project, Kibo said on Thursday.

In the latest meeting, the parties reached agreement on the scope and process of Tanesco’s due diligence on the Mbeya Power Project, in line with the key project milestones established in November’s memorandum of understanding.

As a further step, both entities also agreed to establish a joint technical committee.

The company said the committee would have the primary responsibility of ensuring that the key milestones specified in the memorandum were met as agreed on.

“We are excited by the renewed commitment and enthusiasm that all parties are showing towards getting a power purchase agreement agreed as soon as possible, and to be part of an opportunity to contribute towards addressing Tanzania's extensive and urgent energy needs,” said chief executive officer Louis Coetzee.

At 1451 BST, shares in Kibo Energy were up 22.77% at 0.08p.

Reporting by Josh White for Sharecast.com.