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MCPP project: Kibo Energy submits TQD to TANESCO

Published by , Assistant Editor
World Coal,

Kibo Energy PLC, the multi-asset, Africa focused energy company, has submitted its formal tender qualification document (TQD) to the Tanzania Electricity Supply Company (TANESCO) with regards to the  Mbeya coal to power project (MCPP). This is in line with the Tanzanian Government's new initiative regarding the development of independent power projects.

Louis Coetzee, CEO of Kibo, said, "Our visionary development approach has allowed us to develop and forge critical strategic partnerships very early on in the process and having done all the definitive feasibility studies, financial modelling, technical development work and environmental and social impact assessment certification well in advance, we have been able to submit a TQD of exceptionally high standard and substance in a very short space of time, submitting our TQD 24 hours ahead of the submission deadline; we believe that this will stand us in good stead.  We are now waiting for a definitive date for completion of Phase 1 from TANESCO but expect this to be completed before end of 2018."


Further details

The company's subsidiary, Mbeya Power Ltd, was invited to tender for power generation of up to 600 MW of coal power following the issue of a request for qualification (RFQ) as the first of a two-stage competitive bidding process on 18 September 2018.  The RFQ called for an undertaking to do a feasibility study, finance, build, own, operate and transfer coal power projects of a capacity not less than 150 MW and not more than 300 MW in one location.  


The procurement process and status is outline below: 

Stage 1:  Submission of a TQD in response to RFQ by 19 October 2018 followed by RFQ pre-qualification notification to successful applicants.

  •   Mbeya Power Ltd completed a comprehensive TQD in cooperation with SEPCOIII and General Electric South Africa in a Joint Bidding Agreement, supported by Technical advisors, Tractebel Engie and Legal Advisers Hogan Lovells and Norton Rose Fulbright.
  •  A definitive date for completion of Phase 1 expected from TANESCO before the end of 2018.

Stage 2:  Request for Proposal (RFP) and submission of a formal proposal by shortlisted bidders - the expected process is as follows:

  •   Release of RFP.
  •   Pre-bid meeting (14 days after releasing RFP).
  •   Evaluation of technical bid proposals, clarification of technical bid proposals and selection of bidders that fulfil technical requirements.
  •  Financial evaluation and negotiations, expected to be inclusive of PPA, implementation and development agreement.
  •   Issuance of Letters of Intention to award to successful bidders.
  •   Approvals and necessary clearance.
  •   Issuance of Letters of Award.
  •  Signature of project agreements.

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