Name of the Project
Rukwa coal-to-power project (RCPP).

Location
Tanzania.

Client
Edenville Energy.

Project Description
A feasibility study completed on the project has indicated an economically sound project with a 30-year, 120 MW coal-fired power plant.

The project hosts 171-million tons of measured and indicated coal, sufficient to support the station over the life of the project.

A small-scale mine scenario to provide coal for local markets is being worked on after the granting of a mining licence and the recent ban on coal into Tanzania.

Jobs to be Created
Not stated.

Net Present Value/Internal Rate of Return
Independent power modelling consultancy Diamond Energy has completed a new financial model for Aim-listed Edenville Energy’s RCPP.

The new financial model builds on and validates the results and integrity of the financial model compiled from the results of the 2015 power plant feasibility study.

It has resulted in a 14% increase in the project’s pretax net present value to $252-million, from the previous estimate of $220-million, while the internal rate of return has improved to 23.4%, compared with 23.1% in the 2015 study.

Value
The capital expenditure to deliver a combined mine and 120 MW power plant is estimated at between $180-million and $200-million.

Duration
Not stated.

Latest Developments
Edenville and Sinohydro Corporation have signed a memorandum of understanding (MoU) for the codevelopment of Edenville’s integrated RCPP.

The MoU, which is valid for 18 months and gives both companies exclusive rights to work with each other on the project, sets out the basic terms for the parties to build a strategic partnership and is aims to establish a formal joint venture (JV) contract.

Should the parties form a JV, Sinohydro will be the engineering, procurement and construction contractor for the project.

Under the terms of the MoU, Sinohydro will incur costs of about $1-million on work related to a bankable feasibility study on the proposed Rukwa power plant. 

The company’s project team will also use their experience of working with Chinese and other financial institutions to assist in exploring appropriate funding options available for development capital to be used for construction. 

Edenville, meanwhile, will be responsible for the continued development of the coal mine portion of the project, along with the permitting and legal aspects to advance the power plant to its construction phase. 

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Edenville Energy, tel +44 20 7653 9850 or email info@edenville-energy.com.