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Mbeya Coal to Power Project

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The Mbeya Coal to Power Project, previously known as the Rukwa Power Project, is a proposed 300-megawatt (MW) coal-fired power station in Tanzania.

Location

The map below shows the location of the Mbeya, Tanzania, but not the exact location of Mbeya power station.

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Background

In 2013 a Memorandum of Understanding was signed between Ireland-based Kibo Mining and Korean government-owned Korea East West Power to participate in co-development of a coal mine: the Rukwa thermal coal deposit is in Mbeya Region. Plans also include a 300 to 350 MW mine-mouth power station, with a planned commissioning by 2018.[1]

Kibo Mining later changed its website to say joint venture negotiations were on-going with major energy companies to participate in co-development of a 250-300 MW mine-mouth power station at Rukwa,[2] suggesting the MOU with Korea East West Power fell through.

In April 2015 Kibo Mining said it had signed a development agreement for its Rukwa coal project with SEPCO of China. The Chinese firm would contribute up to US$3 million toward completing a feasibility study by October 2015, after which Kibo’s holding would be transferred into 85% ownership of a special purpose vehicle to develop the project. Financial closure will be led by South Africa’s Standard Bank.[3] Kibo plans to complete feasibility studies by 2015 and financial close by early 2016, with construction planned for the second half of 2016, and first power by 2019.[4]

In October 2015 Tractebel Engineering, a wholly-owned subsidiary of the French utility Engie, entered into an agreement with Kibo Mining to undertake a feasibility study on the proposed plant, despite Engie recently announcing that it would no longer build coal plants. Standard Bank is acting as financial adviser to the company.[5]

In May 2016 Kibo Mining completed its pre-feasibility study for the Mbeya coal project. Kibo has been in talks with the Tanzania Electric Supply Company (Tanesco) for a Power Purchase Agreement (PPA) for the plant.[6] On 31 May 2016 Kibo met with SEPCO III of China to initiate the EPC bid process for the Mbeya Power Plant.[7]

In November 2016, Kibo Mining announced that it had received an advanced draft of the integrated financial model for the project from its financial advisors ABSA/Barclays. The announcement described the project as 250-350 MW in size.[8] In December 2016, Kibo Mining announced that it had awarded the EPC contract for the construction of the plant to Chinese construction company SEPCOIII.[9]

In October 2017 Kibo Mining reported it had been awarded an Environmental and Social Impact Assessment (ESIA) certificate for its proposed Mbeya mine and a 300 MW mine-mouth plant.[10]

In October 2018, Kibo Mining submitted a formal tender qualification document (TQD) for the Mbeya coal to Power Project (MCPP), in line with the government’s new initiative regarding the development of independent power projects.[11]

Project Details

  • Sponsor: Kibo Mining
  • Parent company:
  • Location: Mbeya, Tanzania
  • Coordinates: -8.5, 33 (approximate)
  • Status: Permitted
  • Gross Capacity: 300 MW
  • Type: Subcritical
  • Start date:
  • Coal Type:
  • Coal Source: Mbeya coal mine, Rukwa coal deposit
  • Source of financing:

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