Kibo Energy PLC (“Kibo” or the “Company”), the multi-asset, Africa focused, energy company, is pleased to release this Q&A document to publicly answer questions that it has received from shareholders over recent weeks.
Regarding the MCPP, how does the tender process work and what are the timelines involved?
The tender process and indicative timeline is outlined in the RNS dated 19 October 2018. The Company has submitted a formal Tender Qualification Document which was accepted and is now being reviewed by TANESCO.
Why did the GoT change its strategy and commence a tender process?
The tender process was introduced by the GoT to ensure that there is a transparent and orderly process for the procurement of all government contracts, especially those with a significant long-term strategic impact on the country’s economic wellbeing and development. This is to also prevent any legal challenge to a procurement contract following its award and subsequent execution.
Is the current PPA process still live?
As previously announced, the Company has submitted a formal clarification request to TANESCO in this regard. We shall update shareholders once the Company has received a formal response.
Given the presumption that the MCPP is beneficial to all parties and that Kibo seems to react to the Government of Tanzania’s (‘GoT’) every whim, what is Kibo’s relationship with the GoT like?
We are still confident in the strength of our relationship with the GoT. It is the GoT responsibility and prerogative to adjust its policies in the interest of creating a fairer and more transparent system and Kibo will comply with this. It is important to note that policy changes are not something Kibo and its management can control / influence and to ponder the merits of these at this stage will be counterproductive and short sighted and will not change anything to the status quo. Doing this will only cause the Company to lose our significant head start and competitive advantage as a result of all the development work the Company has done in advance to date. In the MCPP (and now several others as well) Kibo continues to have an excellent project with undisputed merit and strategic value and none of the policy changes to date have or will change this fact.
Why did SEPCOIII delay the deadline for the Strategic Development Agreement?
As stated in the RNS dated 1 October 2018 the decision to postpone the deadline was a mutual decision taken to allow SEPCOIII to complete its internal procedures. The conditions to the SDA are still as outlined in the original RNS (dated 3 July 2018) and is not subject to first signing a PPA on the power component of the MCPP or receiving the SML on the coal mine component of the MCPP.
Why aren’t shareholders given more information?
The Company endeavours to update its shareholders regularly. However, as Kibo is a publicly listed Company, shareholder communications must comply with regulatory legislation.
Does Kibo anticipate coming back to the market for more funding soon given that the newer projects will all require working capital before ultimate financing?
The Company currently has no plans to return to market soon to secure funding.
How is it different working in Botswana and Mozambique to Tanzania?
The Company has strong working relationships in all three countries. There are notable synergies between the three projects in Kibo’s portfolio and this is set to benefit the Company as it continues the development on Mbeya, Mabesekwa and Benga.
Can Kibo provide more regular updates?
Kibo updates shareholders as regularly as possible as evidenced by the 54 RNS it has released to date in 2018. Management also provide additional updates via regular podcasts and video interviews.
The Company is committed to full and accurate disclosure through its normal RNS announcements. However, to assist investors with any matters that require clarification and to avoid any mis-information, Kibo aims to release Q&A announcements such as this on a regular basis going forward; the Company will not reply to shareholders individually. Accordingly, shareholders with questions should submit them to email@example.com.
Notes to editors
Kibo Energy PLC is a multi-asset, Africa focussed, energy company positioned to address the acute power deficit, which is one of the primary impediments to economic development in Sub-Saharan Africa. To this end, it is the Company’s objective to become a leading independent power producer in the region.
Kibo is simultaneously developing three similar coal-fuelled power projects: the Mbeya Coal to Power Project (‘MCPP’) in Tanzania; the Mabesekwa Coal Independent Power Project (‘MCIPP’) in Botswana; and the Benga Independent Power Project (‘BIPP’) in Mozambique. By developing these projects in parallel, the Company intends to leverage considerable economies of scale and timing in respect of strategic partnerships, procurement, equipment, human capital, execution capability / capacity and project finance. Additionally, the Company will benefit from its robust and experienced international blue-chip partnership network across its project portfolio, which includes: SEPCO III (China), General Electric (USA); Tractebel Engineering (Belgium); Minxcon Consulting (South Africa); ABSA / Barclays Africa; and Hogan Lovells International LLP.
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