Renewed MOU with Mozambican electric utility EDM

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	[e-mail]	Kibo Energy PLC	Chief Executive Officer
Andreas Lianos	[phone]	River Group	Corporate and Designated Adviser on JSE
Ben Tadd / Tom Curran	[phone]	SVS Securities Limited	Joint Broker
Jason Robertson	[phone]	First Equity Limited	Joint Broker
Andrew Thomson	[phone]	RFC Ambrian Limited	NOMAD on AIM
Isabel de Salis / Gaby Jenner	[phone]	St Brides Partners Ltd	Investor and Media Relations Adviser

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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