Kibo Energy : Update on MCPP in Tanzania

18 September 2018

Kibo Energy PLC ('Kibo' or the 'Company'), the multi-asset, Africa focused, energy company, notes the announcement by the Tanzania Electricity Supply Company ('TANESCO') regarding the development of Independent Power Projects in Tanzania and the initiation of a tender process for superior coal technology and integrated gasification combined cycle power plants.

The Company intends to review the Invitation for Qualification that was released by TANESCO today and work with its advisers and all Tanzanian stakeholders, including government-related and our international blue-chip partnership network to assess the potential impact on the Company's development plans for the Mbeya Coal to Power Project ('MCPP') of this opportunity to tender. The Company will also seek clarification whether the tender process announced today will have any impact/effect on its ongoing PPA negotiations with TANESCO in respect of the Company's MCPP in the Songwe district in South Western Tanzania.

The Company is continuing work on the MCPP, to ensure an expeditious and successful conclusion of the MCPP, leveraging the Company's optimum position to realize the country's first advanced coal to power project. The network includes SEPCO III (China), one of the world's largest power EPC contractors, General Electric (USA), Tractebel Engineering (Belgium), Minxcon Consulting (South Africa), ABSA/ Barclays Africa) and Hogan Lovells International LLP.

LouisCoetzee, CEO of Kibo, said: 'We have been working in Tanzania for a number of years and have made significant progress in the development of the MCPP. Our initial assessment of this latest tender process seems to indicate additional opportunity to expand the Company's participation in the development of the Tanzania energy sector and we will now urgently consult with our partners to ascertain the best course of action'

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