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Kibo Energy rises as TANESCO confirms resumption of tender process

State-owned TANESCO briefly halted the tender process last week, but confirmed today that it is back on

coal
If Kibo’s bid is successful, TANESCO will buy the electricity produced at its MCPP

Kibo Energy PLC (LON:KIBO) shares rose on Wednesday morning after the Tanzania Electric Supply Company (TANESCO) confirmed that the country’s coal power projects tender process has resumed.

The Tanzanian government wants to add another 600 megawatts of coal power capacity to the country’s electricity grid, and state-owned TANESCO has invited submissions from interested companies.

READ: TANESCO tender process ‘definitely going ahead’, says Kibo

It briefly halted the process on Friday, which spooked some investors, but said today that it is back on.

“We are pleased that the tender process is continuing and that it resumed so quick after the cancellation notice,” said chief executive Louis Coetzee.

“We will collect the amended RFQ documents forthwith to ensure that the tender qualification document which we submitted on 18 October 2018 complies with any new requirements that might be stipulated in the latest RFQ.

He added: “We are however of the opinion that our submission will still be compliant and if any amendments will be required that these will be of a very minor nature.”

AIM-quoted Kibo owns a thermal coal deposit near Mbeya in southern Tanzania, where it is developing the Mbeya Coal to Power project (MCPP) – a 250-350 megawatt mouth-of-mine thermal power station.

TANESCO originally launched the tender process last month, which will see it buy electricity produced at MCPP should Kibo’s bid prove successful.

Share climbed 10.7% to 2.27p in mid-morning trade on Wednesday.

Quick facts: Kibo Energy PLC

Price: 0.4366 GBX

LSE:KIBO
Market: LSE
Market Cap: £3.51 m
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