Kibo Mining and Tanzanian government to update MoU

Kibo Mining today announced that it has agreed with the Tanzanian government to update the existing Memorandum of Understanding for the power purchase agreement (PPA) linked to the Mbeya Coal to Power Project (MCPP).

The multi-asset resource, development and energy company focused on Tanzania said that the agreement followed consultation with Tanzanian Ministry of Energy as well as the Tanzanian Electric Supply Company (TANESCO) over a period of two months.

All stakeholders had recognised the need to expedite the development and implementation of a PPA for the power project due to the significant delays over the past year and the significance of the project, Kibo said.

Furthermore, all parties had agreed to replace the original MOU and update it to streamline the process for conclusion of the PPA, which was approved and confirmed in writing by the board of TANESCO and authorized for immediate implementation.

The approved updated MOU was subsequently submitted to Ministry of Energy and the Attorney General, for endorsement before final signing by Kibo and TANESCO.

Kibo Mining Plc CEO, Louis Coetzee, said, "This agreement underlines the recognition by all stakeholders that the MCPP project is of national importance and that there was a need to define a faster process to reach formal agreement on a PPA via the MOU. Both the Ministry of Energy and TANESCO recognise the importance of reaching a final PPA for the MCPP as soon as practically possible and that the delays in the finalisation of the MOU and subsequent PPA had to be addressed by a reassessment of the conditions precedent to ensure that the PPA is expedited and crystalized for the benefit of all stakeholders. In the confirmation letter received, TANESCO emphasised the strategic importance of the MCPP, as well as their support and full commitment to ensure that the expedited timelines in the updated MOU, along which the PPA is to be agreed and finalised, are indeed met.

"We continue to work with all parties, including SEPCO III and GE to execute the milestones associated with MCPP and I would like to thank all our shareholders and stakeholders for their support and look forward to updating them on further developments as we progress and build value for them and Tanzania."