Kibo Energy PLC, the multi-asset, Africa focused, energy company, is pleased to provide an update on its subsidiaries, Bordersley Power Ltd (‘Bordersley’) and Mast Energy Developments Ltd (“MED”). The Bordersley 5 MW gas-fuelled power generation plant in the UK is currently being developed for Kibo by the Company’s 60% owned subsidiary, manager and operator of Bordersley, MED.
· In light of the recent coronavirus outbreak, MED’s joint development partner, AB Impianti S.R.L (‘AB’), who are based near Milan, Italy had to temporarily halt operations;
· AB team are however now working remotely, and factories are operational again;
· AB are managing the end-to-end Engineering, Procurement, and Construction (‘EPC’) scope of works (‘SoW’) for Bordersley, which includes providing exclusive access to AB construction and engineering capacity and capability as well as cogeneration plant and equipment (refer to RNS dated 30 October 2019);
· As a result of the coronavirus outbreak, the EPC SoW have been delayed, meaning Bordersley’s commissioning will not be possible by Q1 2020;
· MED and AB continue to progress activity as much as possible but at present cannot advise on revised timings as a result of the ongoing impact coronavirus continues to have – further updates will be made as soon as the Company has further clarity to do so;
· MED has recently also received positive funding interest from multiple entities, and is in advanced discussions with regards to securing substantial financing of up to USD100,000,000 which could enable it to embark on a portfolio development strategy and implementation, which will see the simultaneous development of more than 20 sites from its prospective “shovel ready” portfolio of sustainable power generation assets in the UK
Louis Coetzee, CEO of Kibo Energy, commented, “This is clearly an unprecedented time and as we take guidance from official sources with regards to managing the coronavirus outbreak, it goes without saying that the safety of employees and their families is our priority.
As an Italian based firm, the temporary cessation in AB activity was unavoidable but we are grateful for their adaptive work approach, which has meant that they have quickly resumed working activity; this is testament to their commitment and focus on completing the relevant EPC SoW so that commissioning can commence at Bordersley. At this point in time, given that the coronavirus outbreak is still ongoing, and its full impact is at yet unknown, we are unable to advise on when work will commence.
However, we continue to actively monitor the situation and will share further updates with shareholders as soon as we are able to do so. This will also include further updates on the strong financing interest we have received from a number of entities keen to provide a significant funding package that could enable us to immediately establish more than 20 sustainable power sites.
Therefore, despite the pressures of the current global climate, things continue to progress positively and with improving prospects, and our focus and goals remain unchanged.”
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