Updated MCPP MOU to fast-track Development and Implementation of PPA
Dated: 16 November 2017
Kibo Mining Plc (AIM: KIBO; AltX: KBO), the multi-asset resource, development and energy company focused on Tanzania, is pleased to announce that, following consultation with the Tanzanian Ministry of Energy and the Tanzania Electric Supply Company (‘TANESCO’), is was agreed to update the existing Memorandum of Understanding (‘MOU’) re a Power Purchase Agreement (‘PPA’) for the development and implementation of the Mbeya Coal to Power Project (‘MCPP’), to provide for a more streamlined process with materially shorter time lines for PPA finalisation.
The Company has been in very constructive engagement with the Tanzanian Government and TANESCO over the past two months (see recent RNS’) to conclude the updated MOU that will govern the process to agree and implement the PPA. All stakeholders have recognised that the development and implementation of a PPA for the MCPP must be expedited quickly given the significant delays over the past year, as well as the strategic importance of the MCPP. As a result, all parties have agreed to replace the original MOU and update it to streamline the process for conclusion of the PPA. This updated MOU has subsequently been approved and confirmed in writing by the board of TANESCO, and authorized for immediate implementation.
Accordingly, the approved updated MOU has now been submitted to all other concerned parties, i.e. Ministry of Energy and the Attorney General, for endorsement before final signing by Kibo and TANESCO. This remaining administrative process is already underway, and the Kibo Board believes it will be completed imminently. Kibo anticipates providing further information on the material details of the updated MOU and the expedited time lines therein once the updated MOU has been fully executed.