, NAIROBI, Kenya, May 19 – The Ministry of Energy and Petroleum has selected the Consortium of Liketh Investment Kenya and HCIG Energy Investment Company for the concession of both Mui Basin Coal Block A (Zombe-Kabati) and Block B (Mutitu-Ituku) in Kitui County.
The consortium will now be invited for negotiations with the ministry as per the tender requirement on the basis of their responsiveness in the technical and financial proposals they submitted.
“This follows the evaluation and acceptance by the Ministry of Energy and Petroleum of their technical and financial proposals in the tender for concession of the two coal blocks,” A statement from the ministry Tuesday indicated.
The consortium is one of the three technically successful firms for the concession of the two coal blocks whose financial proposals were opened on March 23, 2015.
The other two consortiums were a consortium of Transcentury Investments Continental Oil and Power Machines and the Consortium of the China Northeast Electric Power Engineering Corporation and China Coal Technology.
The Request For Proposal (RFP) for the tender closed on February 4, 2014, with five bids received from the three pre- liquefied firms, three for Block A and two for Block B.
The Transcentury and Liketh consortiums had both bided for Block A and Block B while the China Northern Electric Power Engineering Corporation consortium had bid for Block A only.
The concession provides for exploring, evaluation, extraction, development, production, processing, storage and disposal of coal and Coal Bed Methane if any is found in the blocks.
The consortium also provide for construction and maintenance of minimum economically viable coal fired power plant utilizing some of the coal to generate power for own use and sale of limited excess power to the national grid.
Among the conditions spelt out by the government for investors seeking to extract the remaining coal reserves in Mui Basin is proof of ability to raise investment funds in excess of Sh17.6 billion among other tougher conditions.
Prospective investors were also expected to demonstrate evidence of technical capability and a history of coal mining projects of similar nature in at least three developing countries.