Kibo Energy PLC (LON:KIBO) thinks a recent announcement by the Tanzania Electricity Supply Company (TANESCO) could bode well for its ambitions in the east African country.
The AIM-quoted company owns a thermal coal deposit near Mbeya in southern Tanzania, where it is also developing a 250-350 megawatt mouth-of-mine thermal power station called the Mbeya Coal to Power project (MCPP).
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Kibo is currently in “advanced” negotiations with TANESCO over a proposed power purchase agreement (PPA) at the MCPP.
TANESCO announced today the initiation of a tender process for superior coal technology and integrated gasification combined cycle power plants.
Kibo said it is working with its advisers and the Tanzanian government to find out exactly what this means for its operations in the country and the initial feeling is that it could be a boon for the company.
“We have been working in Tanzania for a number of years and have made significant progress in the development of the MCPP,” said chief executive Louis Coetzee.
“Our initial assessment of this latest tender process seems to indicate additional opportunity to expand the Company's participation in the development of the Tanzania energy sector and we will now urgently consult with our partners to ascertain the best course of action.”
Shares fell 20.2% to 3.4p early Tuesday.