DUBLIN: Kibo Energy PLC, the multi-asset Africa focused energy company, has signed a non-binding Power Purchase Term Sheet (PPTS) and a non-binding Coal Supply Term Sheet (CSTS) with Vale Mozambique, S.A. for the Benga Power Plant Project in Mozambique.
Louis Coetzee, CEO of Kibo Energy, commented, “Finalisation of both a PPTS and a CSTS in such a short span of time after the completion of a Base Case Definitive Feasibility Study and Independent Financial Model clearly reflects the commercial robustness of the project, both representing key milestones in the development of our first pure energy project.
Ultimately, this demonstrates the urgent need and fast-growing demand for electricity in a mineral and resource rich region, which will remain unexploited without access to reliable and affordable electricity.
“In addition to the above referred term sheets, the Company also had further formal engagement with EDM, Mozambique’s national utility over the past week, as part of the ongoing process set out in the existing MOU between the parties, to develop and ultimately agree a PPA for the balance of the electricity that will be produced from the BPPP and not sold to private off-takers.
These very productive and technical discussions acknowledged the relevance of the declared corporate strategy of Kibo, whereby the BPPP is gaining increasing recognition as a critical energy project in Mozambique, with a pivotal role to play in providing a comprehensive energy solution, rather than just being capacity to generate electricity.
The success of energy projects in developing economies and which is true for all of the Company’s utility scale projects, will continue to depend on our ability to demonstrate a profound understanding, capacity and commitment to address the needs and requirements of all legitimate stakeholders. I look forward to updating shareholders on further progress.”