logo-loader
Kibo Energy PLC

Kibo Energy looking for clarification as TANESCO rejects tender bid

Had Kibo’s bid proved successful, it would have seen TANESCO buy electricity from the company’s Mbeya project – a 250-350MW mouth-of-mine thermal power station in Tanzania

power plant
Kibo said it had been given no explanation as to why it has not qualified for the next round of the tender process

Kibo Energy PLC (LON:KIBO) has been dealt a blow after receiving notice from TANESCO that it will not be buying any electricity produced at the company’s Mbeya Coal to Power project in Tanzania.

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

READ: Kibo re-submits tender qualification document

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

After a brief delay in the tender process, Kibo submitted its application back in December which, had it been successful, would have seen TANESCO buy electricity produced at MCPP.

But Kibo said today that it has received notice from TANESCO stating that it has not qualified to compete in the next stage of the bidding process.

“TANESCO did not supply the company with ANY reasons/explanation for its decision in their notification letter,” said chief executive Louis Coetzee.

“The company is currently seeking very urgent clarification and explanation from TANESCO in this regard, where after the company will consider its next course of action.”

Kibo shares were down 36% to 1.07p in mid-morning trading on Thursday.

Quick facts: Kibo Energy PLC

Price: £0.01

Market: LSE
Market Cap: £6.47 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Kibo Energy PLC named herein, including the promotion by the Company of Kibo Energy PLC in any Content on the Site, the Company receives from...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Kibo Energy moving its 'proven projects' into the commercial...

Kibo Energy PLC's (LON:KIBO) Louis Coetzee updates Proactive London's Andrew Scott on progress across their portfolio. The company last week told investors it's been granted seven new mining rights relating to the Mbeya Coal to Power Project (MCPP) in Tanzania. ''The focus for us is...

1 day, 1 hour ago

2 min read