Kibo Energy, formerly Kibo Mining, has renewed and expanded the memorandum of understanding signed with Mozambican state-owned power company Electricidade de Moçambique (EdM) to finance and build the Benga project, the company said in a statement released on Wednesday.
The company listed on the London and Johannesburg stock exchanges also reported that EdM is committed to providing the necessary assistance for the development of the Benga project, whose feasibility study (economic and operational) is progressing rapidly.
The Benga project, in which Kibo Energy partners Mozambican company, Termoeléctrica de Benga, aims to build a thermal power plant with an estimated capacity of 150-300 megawatts in the province of Tete.
Louis Coetzee, chief executive of Kibo Energy, said in the statement “we are making great progress in Mozambique with the development of the Benga project moving ahead according to the plan.”
The company also announced it had decided to extend the deadline for the final confirmation of a strategic development agreement with Chinese company SEPCO3 by a further four months to 30 March 2019.
Ireland’s Kibo Energy and China’s SEPCO3 had agreed to extend the deadline for the latter company to decide on one or more investments in the former’s capital by 30 November, according to a statement released in early October.
Kibo Energy announced on 3 July it had reached a strategic development agreement with SEPCO3, a large construction company in the energy sector, specifically for projects in Mozambique.
The agreement stipulated that SEPCO3 would invest in two phases in the share capital of Kibo Energy while supporting the Irish company’s strategy and position in the African market.