17th Mar 2020 11:18
(Alliance News) - Kibo Energy PLC on Tuesday said work on its Bordersley power plant in the UK has been delayed by coronavirus and it will not be commissioned by the end of the first quarter.
AB Group was chosen by Kibo to conduct engineering, procurement, and construction scope of works for Bordersley. AB is now working remotely, with factories in operation.
However, given the outbreak, the scope of works have faced delays and Bordersley will not e commissioned in the first quarter as hoped.
At the moment, the timing of the works and of the commissioning aren't known and Kibo "at present cannot advise on revised timings as a result of the ongoing impact coronavirus".
Kibo's UK subsidiary MED recently "received positive funding interest from multiple entities" and has entered talks for a possible USD100.0 million of financing which could be put towards "portfolio development strategy and implementation".
Chief Executive Louis Coetzee said: "This is clearly an unprecedented time and as we take guidance from official sources with regards to managing the coronavirus outbreak, it goes without saying that the safety of employees and their families is our priority. As an Italian based firm, the temporary cessation in AB activity was unavoidable but we are grateful for their adaptive work approach, which has meant that they have quickly resumed working activity; this is testament to their commitment and focus on completing the relevant [engineering, procurement, and construction scope of works] so that commissioning can commence at Bordersley.
"At this point in time, given that the coronavirus outbreak is still ongoing, and its full impact is at yet unknown, we are unable to advise on when work will commence. However, we continue to actively monitor the situation and will share further updates with shareholders as soon as we are able to do so. This will also include further updates on the strong financing interest we have received from a number of entities keen to provide a significant funding package that could enable us to immediately establish more than 20 sustainable power sites. Therefore, despite the pressures of the current global climate, things continue to progress positively and with improving prospects, and our focus and goals remain unchanged."
Shares in Kibo were down 14% at 0.30 pence in London on Tuesday and untraded in Joahnnesburg.
By Anna Farley; [email protected]
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