21st May 2018 11:30
LONDON (Alliance News) - Africa-focused energy and resource firm Kibo Mining PLC said Monday it granted the second and final lot of the engineering, procurement and construction contract for its Tanzania power plant project to its Chinese development partner.
The London and Johannesburg-listed company said that the project includes the construction of the power line that will transfer power from the Mbeya power plant in the Songwe district of Tanzania to the state-owned Tanzania Electricity Supply Co Mbeya sub-station.
The engineering, procurement and construction contract was divided into two lots: the first, the power station contract, and the second, the power line construction contract.
The second and final lot was awarded to the Chinese construction and engineering company SEPCO III. Lot one had already been awarded to SEPCO III at the end of 2016.
Kibo Mining said it was in discussions with SEPCO III on the development of a power purchase deal for the Mbeya coal to power project. This project consists of the Mbeya coal mine and Mbeya power plant. Following the talks, Kibo Mining said several strategic decisions were taken with regard to the further development of the project.
The company also highlighted that it has a long-standing relationship with SEPCO III for the development of the Mbeya plant, that is of key strategic importance in reducing Tanzania's critical power deficit, it said.
"We are delighted to continue working with SEPCO III as our designated engineering, procurement and construction partner," said Kibo Mining Chief Executive Louis Coetzee.
"Together with all our development partners we are working all hours to complete the power purchase agreement as soon as possible," Coetzee continued. "The power purchase agreement process is in a very sensitive phase of its development and this requires the utmost patience, consideration and discretion from all stakeholders."
Shares in Kibo Mining were 9.9% higher at 5.00 pence in London on Monday, in Johannesburg shares were untraded at ZAR0.75.
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