TIDMKIBO
RNS Number : 2218K
Kibo Energy PLC
12 December 2018
Kibo Energy PLC (Incorporated in Ireland)
(Registration Number: 451931)
(External registration number: 2011/007371/10)
Share code on the JSE Limited: KBO
Share code on the AIM: KIBO
ISIN: IE00B97C0C31
("Kibo" or "the Company")
Dated: 12 December 2018
Kibo Energy PLC ('Kibo' or the 'Company')
Renewed MOU with Mozambican state-owned electric utility EDM
Kibo Energy PLC ("Kibo" or the "Company"), the multi-asset,
Africa focused energy company, is pleased to announce that it has
renewed and expanded its Memorandum of Understanding ('MOU') with
Mozambican state-owned electric utility, Electricidade de
Mocambique ('EDM'), to advance the financing, construction and
operation of the Benga Independent Power Project ('Benga' or 'the
Project') in Mozambique.
Highlights
-- EDM committing to assist and co-operate towards the
successful development of Benga in Mozambique
-- Full feasibility study on Benga ahead of schedule and
progressing well, designed to confirm its commercial and
operational viability
-- Strong local stakeholder support for Benga with energy supply
a major Government priority in the development of the country
Louis Coetzee, CEO of Kibo Mining, said: "We continue to make
excellent progress in Mozambique with the development of Benga
advancing according to plan. The renewal and expansion of this MOU
with EDM is demonstrative of the significant local stakeholder
support for the Project and we look forward to 2019 with
confidence."
Further Details
Kibo and its joint venture partner, Mozambique energy company
Termoeléctrica de Benga S.A. ('Termoeléctrica'), remain focused on
advancing the development of Benga in Mozambique, including the
construction and operation of a 150-300MW coal fired power
station.
A full feasibility study on Benga is underway, designed to
confirm its commercial and operational viability, including a
Definitive Feasibility Study, an Environmental Impact Assessment,
and independent economic assessments, such as a comprehensive
financial model. Furthermore, discussions regarding a Power
Purchase Agreement ('PPA') between Kibo and prospective off-takers
continue to advance.
The Government of Mozambique considers the energy sector as
strategic for the economy making it a major priority in the
development of the country. In its desire to accelerate the social
and economic development of the country, the Government has decided
to encourage investment, either public or private, by nationals or
foreigners. To realise this vision, its state-owned energy utility,
EDM, has set goals focused on increasing access of the population
to electricity and improving the quality of service rendered to
consumers. To achieve these goals, EDM has planned the development
of infrastructure for generation, transmission and distribution of
electricity.
To this end, EDM has renewed and expanded its MOU with Kibo and
its JV partner, Termoeléctrica, to collaborate in the
implementation of electricity projects in Mozambique, specifically
on projects for the development of electricity infrastructure.
Under the terms of the MOU, Kibo and Termoeléctrica will
continue to carry out all relevant studies necessary for designing
and implementing the Project, which will be submitted to EDM and
the Ministry of Energy and Minerals ("MIREM") for approval.
Additionally, EDM shall assist in accessing the facilities, provide
all relevant information and documentation in the possession of EDM
or its agencies pertaining to the Project, evaluate the Project
proposal documents, negotiate and agree on a conditional Power
Purchase Agreement ('PPA') for all or part of the power production
capacity of the Project, assist in finalising the financing
agreement, and negotiate the related commercial and execution
contracts of the works.
*ENDS*
This announcement contains inside information as stipulated
under the Market Abuse Regulations (EU) no. 596/2014 ("MAR").
For further information please visit www.kibo.energy or
contact:
Louis Coetzee info@kibo.energy Kibo Energy PLC Chief Executive Officer
Andreas Lianos +27 (0) 83 4408365 River Group Corporate and Designated
Adviser on JSE
------------------- ----------------------- -------------------------
Ben Tadd / +44 (0) 20 3700 SVS Securities Limited Joint Broker
Tom Curran 0093
------------------- ----------------------- -------------------------
Jason Robertson +44 (0) 20 7374 First Equity Limited Joint Broker
2212
------------------- ----------------------- -------------------------
Andrew Thomson +61 8 9480 2500 RFC Ambrian Limited NOMAD on AIM
------------------- ----------------------- -------------------------
Isabel de Salis +44 (0) 20 7236 St Brides Partners Investor and Media
/ 1177 Ltd Relations Adviser
Gaby Jenner
------------------- ----------------------- -------------------------
Notes to editors
Kibo Energy PLC is a multi-asset, Africa focussed, energy
company positioned to address the acute power deficit, which is one
of the primary impediments to economic development in Sub-Saharan
Africa. To this end, it is the Company's objective to become a
leading independent power producer in the region.
Kibo is simultaneously developing three similar coal-fuelled
power projects: the Mbeya Coal to Power Project ('MCPP') in
Tanzania; the Mabesekwa Coal Independent Power Project ('MCIPP') in
Botswana; and the Benga Independent Power Project ('BIPP') in
Mozambique. By developing these projects in parallel, the Company
intends to leverage considerable economies of scale and timing in
respect of strategic partnerships, procurement, equipment, human
capital, execution capability / capacity and project finance.
Additionally, the Company will benefit from its robust and
experienced international blue-chip partnership network across its
project portfolio, which includes: SEPCO III (China), General
Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting
(South Africa); ABSA / Barclays Africa; and Hogan Lovells
International LLP.
Johannesburg
12 December 2018
Corporate and Designated Adviser
River Group
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END
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