Kibo's drilling at the Mbeya coal-to-power project, in Tanzania
The share prices of Kibo Energy and Edenville Energy took a knock on Thursday after the companies announced that they had not qualified to participate in the next stage of a bidding process by the Tanzania Electricity Supply Company (Tanesco) to develop coal power projects with a total capacity of 600 MW.
Aim- and AltX-listed Kibo’s share price on the LSE fell by 47.76% on the news, while its share price on the JSE fell by 31.58%.
Aim-listed Edenville’s share price on the LSE, meanwhile, fell by 32.43%.
Kibo is developing the 300 MW Mbeya coal-to-power project, in Tanzania, and Edenville the Rukwa coal-to-power project in the country. Both companies noted that Tanesco had not provided a reason for its decision not to include them in the next stage of the bidding process.
Kibo said it was seeking urgent clarification and explanation from Tanesco regarding its decision. The company will then consider its next course of action.
Kibo and Edenville in December resubmitted their respective tender qualification documents to Tanesco, following troubles with the process from Tanesco’s side.
The request for qualification called for an undertaking to conduct a feasibility study, finance, build, own, operate and transfer coal power projects of a capacity not less than 150 MW and not more than 300 MW in one location.