Tanzania’s Mbeya coal to power project receives greenlight

Tanzania Electric Supply Company (Tanesco) has received green light for the development of the Mbeya coal-to-power project (MCPP). Aim and JSE listed Kibo received the notice.

The green light now enables JSE listed Kibo to engage other African power pools on offtake agreements. The power project is available to three market opportunities including export, utility and private offtake.

“There is an existing acute under supply of power within Tanzania and the Southern African part at large, meaning that there is still an urgent demand for electricity and given that Tanzania has a target to deliver about 880 MW for the export market in the period  between 2020 and 2040, the MCPP is well positioned to help meet this high demand,” stated Kibo Energy.

Mbeya coal-to-power project

According  to feasibility studies done, the project has a potential to generate 100MW of power. Tanesco implemented the power interconnectors through Zambia, Tanzania and Kenya, enabling power trade among the Eastern African Power Pool and the Southern African PowePool member countries.

Additionally Kibo was asked to engage the power pools to ensure participation in the high demand export market. The notice from Tanesco was however not subject to any tender process. It is unrelated to the tender refereed in February. 

“Our recent engagement with TANESCO shows our belief in MCPP which continues to have significant economic importance for not only Tanzania but the region too. I’m looking forward to updating shareholders on the details and progress of MCCP,” said Kibo CEO Louis Coetzee.

300MW Kam’mwamba coal-fired power project in Malawi underway

300MW Kam'mwamba coal-fired power project in Malawi underway

Construction works on the 300MW coal-fired power project Malawi is underway. This is according to Ambassador of the People’s Republic of China Liu Hongyang.

“Kam’mwamba Coal-field Power Project is still alive and there, what we are doing is that we are doing some visibility studies on some infrastructure like roads, railways systems and other things to enable easy transportation of coal as well as distribution,” said Hongyang.

Kam’mwamba Coal-Fired power plant project

The Kam’mwamba Coal-Fired power plant project located, is projected to have a life span of 30 years. It is being financed by a loan from Export and Import (Exim) Bank of China to the tune of US $667m project with Lilongwe required to source US $104m as commitment fee. The plant would use coal from Moatize in Mozambique that will be transported by rail.

The Ambassador explained that Power Purchase Agreement (PPA) and the creation of the company to operate the project  delayed the project. Once fully operational, the plant would help Malawi to diversify from using hydro power which of late has proved to be challenging due to low water levels.

Energy consultant Grain Malunga, a former minister of Natural Resources, Energy and Mining, added completion of the project is critical, arguing that it has potential to improve electricity supply in the country.

The project is will be implemented under the Engineering, Procurement and Construction (EPC) model, which is a particular form of contracting arrangement used in big projects where the contractor is responsible for all the activities from design, procurement, construction to commissioning and handover of the project to the end user or owner.

“We see the project boosting the energy sector and it is pleasing that the project is taking shape because these are the resources we should have tapped long time ago,” said Mr Malunga.

Leave a Reply

Your email address will not be published. Required fields are marked *

%d bloggers like this: