Coal-fired power project in Mozambique gets its wings

A new joint venture between two energy development companies may result in the potential development of a coal-fired power station in Mozambique.

This follows the signing of a joint venture (JV) agreement between Kibo Mining, the multi-asset Africa focused energy and resource company, and Mozambique energy company Termoeléctrica de Benga S.A. (Termoeléctrica) to form the Benga Power JV.

The JV agreement will allow both parties to participate in the further assessment and potential development of the Benga Independent Power Project (BIPP), including the right to construct and operate a 150-300 MW coal fired power station.

Kibo and Termoeléctrica shall hold initial participation interests in the unincorporated joint venture of 65% and 35% respectively.

The Benga Power JV is another step in advancing Kibo’s strategy to position the company as a leading regional energy player.

Subject to the successful outcomes of further and more detailed studies on the BIPP, Kibo Mining envisages being able to develop the BIPP in an expedited manner alongside its Mbeya Coal to Power project (MCPP) in Tanzania and the recently acquired Mabesekwa Coal Independent Power (Mabesekwa) project in Botswana.

The Benga Power JV will utilise Kibo’s experience in the  advancement and development of power projects in the East African region and its strategic relationships with international development partners such as Sepco III and General Electric.

As the BIPP has similarities with the MCPP and Mabesekwa, it is envisaged that considerable benefits could be realised in any potential power station development, including economies of scale in equipment, execution and project finance.