JOHANNESBURG - Multi-asset, Africa focused energy company Kibo Energy said on Wednesday it had renewed and expanded its agreement with Mozambican state-owned electric utility, Electricidade de Mocambique (EDM) to advance the financing, construction and operation of the Benga independent power project.
Kibo said it and its joint venture partner, Mozambique energy company Termoeléctrica de Benga were focused on advancing the development of the project, including the construction and operation of a 150-300MW coal fired power station.
A full feasibility study is underway, designed to confirm its commercial and operational viability, and discussions regarding a power purchase agreement between Kibo and prospective off-takers are continuing.
"We continue to make excellent progress in Mozambique with the development of Benga advancing according to plan," said Louis Coetzee, CEO of Kibo Mining.
"The renewal and expansion of this MOU (memorandum of understanding) with EDM is demonstrative of the significant local stakeholder support for the project and we look forward to 2019 with confidence."
Mozambique considers the energy sector as strategic for the economy and has embarked on a drive to encourage public and private investment by both nationals and foreigners.
Under the agreement, Kibo and Termoeléctrica will continue to carry out all relevant studies necessary for designing and implementing the project, which will be submitted to EDM and the ministry of energy and minerals for approval. EDM will help in accessing the facilities, provide all relevant information and documentation in its possession pertaining to the project.
- African News Agency (ANA)