Edenville Energy begins negotiations on Rukwa power plant

(ShareCast News) - Edenville Energy revealed how close it was to construction of its Rukwa Coal-to-Power project in south west Tanzania on Monday, having started discussions with local grid officials about the scope of the project and its generation.The AIM-traded company's representatives met with the Tanzania Electric Supply Company (Tanesco) during January, where Tanesco presented a draft formal framework agreement for the Rukwa Coal Power Project, by setting out milestones for a Power Purchase Agreement.Edenville Energy said the process for securing a Power Purchase Agreement was outlined by Tanesco in the framework, which is standard for all companies developing power projects in Tanzania.A completed framework would provide Tanesco's formal support for Edenville's planned 300MW clean coal power plant at its Rukwa Coal Project, in the Sumbawanga District of South West Tanzania."Edenville is confident that submission of its existing Power Plant Feasibility Study, Measured and Indicated Resource Report and Environmental Impace Assessment for the mining operations will achieve many of the milestones outlines in the framework agreement", the company's board said in a statement.The company had already gone through the first milestone defined in the framework, it said, having submitted its Project Concept Note. It was continuing to work with its advisors to collate additional project data and financial information to enable Edenville to commence formal Power Purchase Agreement and Transmission Line Agreement negotiations.If agreed as expected, those agreements would bring the project to the point of financial closure and construction."In anticipation of the significant progress expected to be made over the coming months, Edenville is pleased to announce that it has appointed George Rogers of Rockface Capital as a specialist consultant", the board confirmed."George brings 27 years experience as a resource project financier and led the resources teams at Morgan Grenfell, Deutsche Bank and Investec", it continued.