Kibo Mining has signed a joint venture (JV) agreement with Mozambique energy company Termoeléctrica de Benga for the development of the Benga independent power project (BIPP).
The JV agreement also includes the right to construct and operate a 150-300MW coal-fired power station.
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By GlobalDataKibo is a multi-asset resource development and energy company, which aims to become a leading power producer in Sub-Saharan Africa.
As per the agreement, Kibo and Termoeléctrica will hold an initial participation interest of 65% and 35% respectively, in the unincorporated joint venture.
The JV with Termoeléctrica is expected to further strengthen Kibo’s strategy to position the company as a leading regional energy player.
Kibo CEO Louis Coetzee said: “This JV is expected to add considerable value to Kibo’s portfolio of late-stage energy projects and aligns perfectly with our proactive investment strategy of becoming a significant regional power player.
“Due to our experience of the development of the MCPP and Mabesekwa in addition to our relationships with international development partners General Electric and SEPCO III, we have been recognised as the preferred development partner for strategic power projects in the region.
“Now we strive to utilise our contacts and industry experience, delivering value to the shareholders through three different projects.”
By carrying out a detailed study on the BIPP, Kibo intends to speed-up the development of BIPP alongside its Mbeya coal to power project (MCPP) in Tanzania and the recently acquired Mabesekwa coal independent power project in Botswana.
Since the BIPP project is similar to MCPP and Mabesekwa, it is predicted that considerable benefits could be realised in any potential power station development, including economies of scale in equipment, execution and project finance, according to the Kibo.
The JV also intends to make use of Kibo’s expertise in the advancement and development of power projects in the East African region, as well as its relationships with partners such as Sepco III and General Electric.