Aim-listed Kibo Mining has awarded Sepco III the second lot of the engineering, procurement and construction (EPC) contract for its Mbeya coal-to-power project (MCPP), in Tanzania.
Lot 2 of the EPC contract involves the construction of the power line that will evacuate power from the Mbeya power plant, in the Songwe district, to Tanzania Electricity Supply Company’s (Tanesco’s) Mbeya substation.
Stemming from the past four weeks’ intensive engagement with Tanesco on the development of the power purchase agreement (PPA) for the MCPP, Kibo met with Sepco III to discuss various matters.
During the discussions, Sepco III was given an update on the progress with regard to the PPA negotiations.
Further, the existing EPC contract price for MCPP was revalidated, while the parties also discussed the integration and alignment of PPA technical requirements with the EPC contract provisions.
Kibo and Sepco III also discussed expanding their existing cooperation agreement to also include Kibo’s Mabesekwa project, in Botswana.
During these meetings, the company and Sepco III also decided that sufficient progress has been made with the PPA discussions and that it would be prudent to sign Lot 2 of the EPC contract with Sepco III.
“We are delighted to continue working with Sepco III as our designated EPC partner. The signing of this second lot of the EPC is the conclusion of discussions with Sepco III that occurred last week in China, during which several strategic decisions were taken with regard to the further development of the MCPP, as well as our future strategic cooperation with Sepco III,” said Kibo CEO Louis Coetzee.