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I don't think it does Slong. It says those with a MOU are advised to tender. My interpretation of this statement is they would like us to apply as they know there are very few companies who have the capacity to meet the extremely tight tender deadline date.
If the scenario I painted is somewhere near accurate, the RNS could indeed have been extremely positive and I believe the SP would have risen . It is possible that LC thought he was putting out good news being unaware there had been any problem in the past with the tendering process. He obviously now knows this.. Of course, this is still purely speculation.
Thanks for the full report bespooked.. I have just been on the PPRA website to find the date of their ruling on the Tanesco tendering process.
The date the report was created is shown as being 1st August 2017. So over a year ago if the website is correct. Thinking more about it, there is no reason why LC or indeed any other non affected person would even be aware of this ruling as our MCPP project is not the subject of any tendering process. So logically, putting yourself in LC's place, you suddenly get an invite to tender for an independent, SPECIFIC and totally unrelated project for 600Mw of power. I would suggest he saw this as very favourable and positive news for Kibo, indeed an opportunity, so he rushes out a RNS, not knowing much more about any detail.
Meanwhile, for the first time, people start looking at the tendering procedures for Tanesco. They find this year old ruling, put 2 and 2 together and get 5 because they think the report is brand new. Suddenly everyone believes the latest tenders are an immediate response by Tanesco to put in place their updated procedures. Because Kibo was invited/advised to tender for this specific and separate project, people went into panic thinking the association also might apply to the MCPP project.
Everybody then starts being negative starts to panic sell and the SP falls. People also start to blame LC for an incomplete RNS and cry out for further information. People like myself insist the next RNS is The Complete RNS so LC waits until he has the full and complete facts before posting his next RNS.
Works for me.
I hope bespooked does not mind but below, I have re-posted his post from Wednesday as there is a lot in it. I would be interested to know if this was the whole article as I cannot find where it came from. Over to you bespooked.
Of significance to me is the paragraph that dictates Tanesco wants at least 2 and possibly more locations to generate this 600Mw tender . It is for this reason, I believe this tender is a one off project for a specific purpose and should not impact on our MCPP/SML/PPA..
Deadline is 19.10.18
This Invitation for Tender follows the intention of the Government of the United Republic of Tanzania through Tanzania Electric Supply Company Ltd (TANESCO) to competitively engage qualified applicants to develop coal power projects with a total capacity of 600MW at different locations within Tanzania.
TANESCO intends to procure power generation from a set of Integrated Gasifrcation Combined Cycle (IGCC) or superior technology coal based power projects with total capacity of 600 MW between years 2018 and 2020.
TANESCO, is therefore, pleased to present this opportunity to prospective developers to undertake feasibility study, finance, build, own, operate and transfer coal power projects of a capacity not less than 150MW and not more than 300 MW in one location.
Tendering will be conducted through international Competitive tendering procedures specified in Regulation 1 19 of the Public Procurement (Regulations Government Notice 446 of 2013, and is open to all Applicants as defined in the Regulations. Prospective developers who have earlier expressed their interests to develop coal power projects by way of concept note, MoU or any other form and have submitted documents to TANESCO are advised to participate in this tendering process.
Hi Gillie. Just re-read the findings of the appeal committee you posted. I can understand that ERP Software Technologies were initially subject to a tendering process which has now been deemed to be in contravention of the law by the PPAA. However, am I correct in saying our MCPP project was and is not subject to any tender process?
If this is the case, then I fail to see how this latest invite to tender can have any impact on the MCPP/SML/PPA.
To my mind, this latest invite to tender for 600Mw of power is a one off tender for power for a specific purpose. The fact Tanesco has invited/advised those with a MOU to compete for this one off tender can only be a good thing for Kibo. Your thoughts would be appreciated. Also JD it would be good to get the Twitter groups thoughts on this aspect.
monitoring human behaviour in turbulent situations. A number of people looking to apportion blame on LC at the moment. Whilst I personally think LC over re-acted to limited information regarding this latest Tanesco fiasco, he cannot be blamed for the delays in bringing the MCPP to closure. We have had a change in politic regime, The Paris Protocol, a fundamental change in the Mining Regulations and in Tanesco, an incompetent company who have changed posts more times than a travelling circus. Meanwhile, the limited information we do have points to this latest situation possibly being an opportunity for Kibo. I am as much in the dark as anyone at the moment but one thing I do know is LC will be working 24hrs a day to get this sorted and get Kibo in a position so any opportunity can be taken advantage of.
This board calling for his head will do nothing to change the situation. Kibo now has institutional investors who probably paid as much or indeed more for their shares than many of us. So LC knows he is under pressure.
In reality, the only thing that has caused the SP to fall is lack of information and therefore sentiment. LC has done a tremendous amount of work in changing the face of Kibo and increasing our options. I accept we shareholders have had no return on our monies to date and in fact I am well out of pocket with an average of 5.6p. however, in real terms, the company I initially invested in, is much better placed than when I first invested nearly 5 years ago.
I am still very confident that this share will eventually deliver. I only wish I was buying in at today's prices. But for those calling for LC's head, I suggest you have a rethink and look at the history and reality of the situation. As far as the fundamentals of the company are concerned, nothing has actually changed and this opportunity that is being bandied about might be exactly that. We will know soon enough. GLA, especiaaly the long term holders.j
http://c.newsnow.co.uk/A/955152638?-31747:20621
It says in the article the contractor is going to operate the construction on a TURN KEY basis. If the Tz Government do not get their finger out and sanction some power provision the whole system will have to operate on a turn key basis
JD. The most significant issue to me is the financial aspect and what part a PPA might have in the this tendering process, if at all. Does anyone think that the tender will need to identify a purchase price to Tanesco for the power?
As you rightly think, I am also at a total loss to identify one other company who could provide all of the costings necessary to submit an accurate tender. Am I correct in my belief the tenders need to be submitted by mid October 2018? If Tanesco only wants a Max of 300 MW from a single provider, it would be very interesting to know who else they think will e tendering along with us to provide the other 600MW.
I am probably in" thickie" mode at the moment but I am struggling to get my head around this tendering process. The tenders announced yesterday were for a total output of 600Mw, be that from 2 plants of 300Mw each, 4 plants of 150Mw each or, further derivatives of 600Mw. The total Mw;s required from these tenders is a very specific figure, as if Tanesco wes aware of an upcoming need for this 600Mw which needs to be provided between 2018 and 2020.
The original MCPP was not the subject of a specific tendering process so does that submission still stand alone?
The information provided by bespooked yesterday informed us it was "advisable" that companies who currently had arrangements with Tanesco should also apply. Is this new tender application in addition to any pre- existing submission or instead of?
Given the fact it has taken 2/3 years for Kibo to complete all of the necessary surveys, applications and certification to build a Clean Coal to Power Plant , how much actual information are companies wishing to submit for these tenders, expected to supply, particularly given the submissions need to be made in a very tight timescale?
We know that the reason Tanesco has had to change their procedures is due to recently identified illegalities but surely that is specifically relevant to their tendering process. Why should the procedures not affected by these tendering anomalies be affected? Also, will the new tendering process need to include a " thermal "buy price provision therefore doing away with the need for a PPA agreement? Surely, the only companies who can provide accurate financial elements to any tendering process can be those who have carried out all of the steps that Kibo have undertaken? I could go on and on with this thought process however, I cannot see anyone having the answers at this stage.
Obviously, LC has had no control over this latest development but his RNS yesterday was ill timed, incomplete and certainly did not have the desired affect in promoting this as an opportunity. IT IS ABSOLUTELY ESSENTIAL THEREFORE THAT THE NEXT RNS IS COMPLETELY ACCURATE, WHOLLY INFORMATIVE, PROVIDES ANSWERS NOT QUESTIONS AND GIVES DIRECTION. I would rather wait and get the correct information rather than get something that papers over the cracks. That would not do anybody any good and in particular Louis himself.
Again if you look at bespooked post ( 1146hrs ) the final paragraph refers to those who have previously been involved with Tanesco. They are advised to participate in this tendering process. Given the information from bcl42 from St Brides I suppose it is still very feasible that the tender is for an additional 300Mw. This would certainly underpin LC;s inference that it was an opportunity for further expansion. Beginning to feel like a mushroom looking for growth in the dark.
On reading his post again of 1146hrs it would appear Tanesco wants to enter into agreement with a number of separate projects to actually produce electricity between 2018 and 2020. Each project will be a min of 150Mw and a max of 300Mw with a total capacity of 600Mw.. I cannot even begin to understand the rationale behind this approach particularly considering the cost effectiveness of economies of scale. I just wonder though if 600Mw is a figure they have assessed as being required to run the SGR, especially as they are looking for the sites to be in different locations.
So now we know a bit more. We need to resubmit our tender. So what do we have to offer?
We are a company in TZ that has a pre existing MOU with Tanesco, access to Jorc compliant coal, international partners in GE and Sepco who specialise in building clean coal power stations. LC will have undoubtedly carried out a lot of work already regarding FC. Tz are desperate for power . We are desperate to provide them with power. The ZTK trans,mission lines that is going to carry the new electrical power runs right by our proposed Mbeya site. The only reason for the re-tendering process is Tanesco have been instructed to go to re-tender because of illegal anomalies in their existing process. ( Why am I not surprised )
The best thing to come out of this debacle in my opinion is we now have it in black and white that the tender is for a COAL POWERED plant. So coal is alive and kicking in TZ and who is best laced to provide it? We are.
Surely this is as nailed on as it is possible to get!!! If you were starting out again and doing your research with a view to investing in a company with prospects, you would cream your duds on discovering a situation like ours. Onwards and upwards.
Mikemike. If we have that option then it is the only way to go as we are no longer a mining company. I just wondered if there were any strings that linked the SML application to the MCPP. However, if Tanesco is looking for tender applications for CLEAN COAL TECHNOLOGY it must be a huge advantage to include in your submission you have access to millions of tonnes of Jorc compliant coal and a license to mine it.
I suppose that unless there are conditions in our SML application that links it directly to the MCPP, this Tanesco issue should not affect the SML application at all. There would be no reason therefore that the SML should not be granted soon and independently of anything else. At least it would add a bit of value.
It is still quite difficult to get any definitive news about the actual detail of Tanesco's latest move but the limited information available all talks about this being an opportunity for Kibo. I believe that yesterday, LC received the information from Tanesco re tendering but obviously did not have the full information or he genuinely saw what was in front of him as an opportunity. Why else would he now have to seek clarification from Tanesco and why else would he issue that incomplete RNS? He must have thought the news from Tanesco would be widely available and everyone else would see this as an opportunity. The problem was, no-one else had access to the information.
Once LC saw the reaction of the market to his knee jerk reaction RNS, he decided to do the Podcast in an attempt to provide some clarity to the situation. You can tell from the interview he was unprepared. Additionally, the interview was the last of five interviews as if it had been tagged on the end. However, the content was honest enough and he certainly gave the view that this was an opportunity.
What I cannot understand is how this news has only seemed to affect Kibo. I cannot find any comments on any of the news outlets from any other company in Tz. Also, I believe Sinhydro are still involved with EDL and there was not even one single post on their board yesterday or today on the subjcet. Will they be submitting a bid? Their SP did not move at all.
Another thought, given the latest financial ruling against Tanesco. Is it yet another attempt at trying to get the cheapest most competitive deal available as there are very few horses in the race at the moment. They know they need electricity soon so are asking for 600MW bids. They also must know the Steigler Gorge project is simply a Pipe Dream of Magafulli who clearly has no idea about the amount of time and work it takes to complete such a massive piece of work. It's as if he has taken the spoiled brat approach saying " I have seen one, I want one and I want one now" The Steigler Gorge will not produce electricity for another decade, if at all. The experts Magafulli has retained to advise on the project are from the Ethiopia Hydro Project and they are way way behind on their own schedule of completion.
As I said yesterday, this is a great opportunity for GE and Sepco to get much more involved in the energy sector in not just Tz but on the continent as a whole. We know the USA and China have both stated their intent to seek more involvement in Africa.
So who knows? One thing is for sure. LC has lost a bit of credibility with his latest knee jerk RNS. I expect his next one to be focused, honest and professional with plenty of accurate detail regarding the strategy OUR company is taking to ensure we win the tender. The tender talks about Clean Coal Energy so surely GE and Sepco are going to play a massive part in the submission. Over to you LC your shareholders are watching and yes, still waiting. GLA.