Edenville Energy met with Tanzania Electric Supply Co. Ltd (Tanesco) during January 2016. During these meetings, Tanesco presented a draft formal framework agreement for progressing Edenville's Rukwa clean coal power project by setting out milestones for a power purchase agreement (PPA).
Edenville has reported that it is confident that submission of its existing power plant feasibility study, measured and indicated resource report and environmental impact assessment (EIA) for the mining operations will achieve many of the milestones outlined in the Framework Agreement.
Edenville has submitted its project concept note, which represents the first milestone defined in the framework agreement and is now working with Tanesco with a view to execute the agreement once specific due diligence has been completed.
The framework agreement will provide Tanesco's formal support to Edenville's plans to establish an integrated 300 MW clean coal power plant at its Rukwa coal project in the Sumbawanga District of south west Tanzania.
It is reported that Tanesco and Edenville, through its Tanzanian subsidiary Edenville International Tanzania Ltd, will work together on an exclusive basis to progress development plans for this clean coal power plant with a view to the coal mine and power generation facilities being operated for a minimum of 35 years.
In addition, Edenville will continue to work with its advisors to collate additional project data and financial information to enable Edenville to commence PPA and transmission line agreement (TLA) negotiations, which, if agreed as expected, will bring the project to the point of financial closure and construction.
The timing of these deliverables will be agreed once the framework agreement is formally signed, as is expected to be the case for all participants in Tanzania's power generation expansion plan.
Edited from press release by Harleigh Hobbs
Read the article online at: https://www.worldcoal.com/power/08022016/milestones-for-a-power-purchase-agreement-set-out-for-rukwa-coal-to-power-project-194/