Dual-listed Kibo Energy on Wednesday said a final decision regarding a strategic development agreement (SDA) with China-based Sepco III at the Mbeya coal-to-power project (MCPP), in Tanzania, has not been made and that discussions are ongoing.
As previously reported by Mining Weekly Online, Kibo in July 2018 signed an SDA with Sepco III to work toward enhancing Kibo’s strategy and the development of its portfolio of energy projects.
As part of the SDA, Sepco III committed to a two-stage equity investment in Kibo.
Kibo in December 2018 elected to extend the deadline for the final confirmation of the SDA for a further four months to March 30.
At the time, Kibo said this would be a period of nonexclusivity during which Kibo could enter into discussions with other interested parties.
Kibo, nevertheless, said its relationship with Sepco III “remains a strong and positive working relationship”.
This was reflected in the continued close cooperation to finalise the SDA, and on the development of the MCPP, where the parties have, among others, signed a joint development agreement and an engineering, procurement and construction contract.