Kibo Energy, Edenville Rejected In Tanzanian Power Project Bid

LONDON (Alliance News) - Shares plunged in Kibo Energy PLC and Edenville Energy PLC on Thursday ...

Alliance News 14 February, 2019 | 12:10PM
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LONDON (Alliance News) - Shares plunged in Kibo Energy PLC and Edenville Energy PLC on Thursday after both companies were unsuccessful to bid for developing coal power projects in Tanzania.

Shares in Kibo fell 26% at ZAR0.28 in Johannesburg, while London shares dropped 38% at 1.039 pence on Thursday.

Shares in Edenville also dropped 37% at 0.070 pence in London on Thursday.

Kibo received written notice from the Tanzania Electricity Supply Co, that it had not qualify to compete in the bidding process for the developments of coal projects with a capacity of 600 megawatts.

Kibo Energy said that TANESCO had informed the company of its failure "without providing reasons or explanation".

"TANESCO did not supply the company with any reasons/explanation for its decision in their notification letter. The company is currently seeking very urgent clarification and explanation from TANESCO in this regard, whereafter the company will consider its next course of action," said Chief Executive Louis Coetzee.

Edenville Energy, like Kibo, said it has not been given any reasons by TANESCO for the decision, and is engaged in discussions to seek clarification.

TANESCO first announced the tender for the coal projects in September 2018.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Kibo Energy PLC 1.50 GBX -15.49 -
Edenville Energy PLC 0.02 GBX 0.00 -
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