Tanzanian energy company Kibo Mining Plc announced on Wednesday that it had signed a joint-venture (JV) agreement with Mozambique energy company, Termoeléctrica de Benga S.A.
The JV agreement will see Kibo participate in the further assessment and potential development of the Benga Independent Power Project (BIPP), including the right to construct and operate a 150-300MW coal fired power station.
The assets of the JV would be transferred unencumbered and unfunded into a clean "sole purpose" vehicle in which Kibo and Termoeléctrica shall hold initial interests of 65 percent and 35 percent respectively.
Kibo said the Benga Power JV was another step in advancing its strategy to position it as a leading regional energy player as it envisages being able to develop the BIPP in an expedited manner alongside its Mbeya coal to power project in Tanzania and the recently acquired Mabesekwa coal independent power project in Botswana.
Louis Coetzee, Kibo's chief executive, said: "This JV is expected to add considerable value to Kibo's portfolio of late stage energy projects and aligns perfectly with our proactive investment strategy of becoming a significant regional power player."
- African News Agency (ANA)