Kibo Mining has signed a memorandum of understanding (MoU) with the Tanzania Electric Supply Company (TANESCO) for a power purchase agreement (PPA) for its flagship 300MW Mbeya Coal-to-Power Project (MCPP).
The MoU is said to be an important precursor for the completion of the PPA, which is expected to take place by Q1 2018.
The PPA agreement will be signed in accordance with a timeline that was previously agreed by TANESCO and Tanzania’s Ministry of Energy.
Kibo intends to build a 300MW mine-mouth power station at MCPP to address the country’s acute power deficit.
Completion of the PPA will allow Kibo to begin the final development phase of MCPP, including construction and commissioning.
Kibo CEO Louis Coetzee said: “This is a seminal moment for Kibo as a signed MOU signals the official engagement by TANESCO and the Ministry in the formal implementation of the MCPP and moves us to just one step away from finalising the PPA.
“During the meeting with the Honourable Minister for Energy referred to above, the strategic national importance of the project was reiterated, as well as the critical importance of seeing the project completed in less than 36 months if achievable.
“The Honourable Minister also informed the company that the ministry is taking proactive steps to ensure an expedited PPA process.”