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Kibo gets nod to engage on Mbeya offtake

17th May 2019

By: Marleny Arnoldi

Online News Editor

     

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Aim- and JSE-listed Kibo Energy has received formal notice from the Tanzania Electric Supply Company (Tanesco) to develop the Mbeya coal-to-power project (MCPP) for the export market.

This enables the company to engage with African power pools regarding offtake agreements.

The MCPP has been developed up to bankable feasibility stage, with a potential generating capacity of 1 000 MW. There are three market opportunities for the company, namely utility, export and private offtake.

“The acute undersupply of power within Tanzania and the Southern African region means that there is an urgent demand for electricity and, given that Tanzania has a target to deliver about 880 MW for the export market for the period 2020 to 2040, the MCPP is well positioned to help meet this demand,” Kibo stated previously.

Tanesco is establishing interconnectors with Zambia, Tanzania and Kenya, enabling power trade throughout the Eastern African Power Pool and the Southern African Power Pool.

Tanesco recommended that Kibo engage these power pools to ensure participation in the export market; however, Kibo remained engaged with Tanesco regarding energy supply to the domestic market.

Kibo CEO Louis Coetzee pointed out that this notice from Tanesco was not subject to any Tanesco tender process and was unrelated to the tender referred to in February, in terms of which Kibo requested clarification on a bid that Tanesco had rejected for the next stage of bidding for coal power projects totalling 600 MW.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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