Africa-focused Kibo Energy and its local joint venture (JV) partners have agreed on the next steps towards the ultimate finalisation of a power purchase agreement (PPA) at the company’s Benga power plant project (BPPP), in Mozambique, following a discussion with Mozambique energy utility Electricidade de Moçambique (EDM).
During the meeting, the final optimised definitive feasibility study, inclusive of the updated grid integration study, and a summary of an updated draft financial model was presented and discussed as the fundamentals that will guide and focus the further course of the PPA process.
This will ensure that a final result is obtained at the earliest opportunity possible, a statement by Kibo confirmed on April 12.
The discussions during the workshop, besides others, also included an agreement reached between the parties to integrate specific EDM inputs into the financial model and the immediate initiation of a formal engineering, procurement and construction process towards finalising an advanced financial model that reflects firm numbers on key commercial parameters.
Kibo CEO Louis Coetzee said the workshop also afforded the company the opportunity to formally submit an optimised version of the feasibility study and related work progress reports, which also incorporates the inclusion of the Baobab Tete Steel and Vanadium Project in the enhanced business case for the BPPP.
“The studies and reports that were submitted to EDM during the meeting demonstrate a robust business case, consisting of a project with a diversified and balanced off take composition that also brings with it pertinent strategic advantages to the energy sector as a whole,” he said, enthusing that the BPPP is “at a very exciting juncture in its development process”.
The BPPP entails the development of a proposed 150 MW coal-fired power station, for which coal will be sourced from local producers.