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Kibo Energy Acquires 100 MW Victoria Falls Solar Park in Zimbabwe

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Irish renewables developer, Kibo Energy PLC, has signed a share purchase agreement (SPA) to acquire a solar power project in Zimbabwe. The transaction concerns the acquisition of a 100 MW Victoria Falls Solar Park from Broomfield International Ltd (Broomfield).

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Kibo Energy will acquire the total shared capital of Brownhill International Ltd. (Brownhill) and the shareholder loan claims against it, which holds the solar project through its subsidiary Power Ventures Pvt. Ltd. The cost of the transaction is GBP 10 million ($13.2 million), payable in new ordinary shares of Kibo at an issue price of 5 pounds for each share.

The solar power project will be developed in several phases of 25 MW, the first of which is already in the construction phase. Initially, a portion of the 5 MW power unit will become operational by the end of next month. A further 20 MW of operational solar power units will be launched by December 2022.

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The output of the solar facility will be connected to the Hwange-Victoria Falls national transmission line by the mechanism of a simple loop-in loop-out connection. Kibo has acquired all the necessary permits for the solar project including the generation license, environmental permit, and grid connection, along with long-term power purchase agreements (PPAs).

Upon the final completion of the solar power plant, Kibo energy has planned to deliver an equity internal rate of return (IRR) of 17.6% along with a total unlevered free cash flow (EBIT) of around $107 million.

The implementation of the first phase of the Victoria Falls Solar Park will increase the share of solar power in Zimbabwe’s electricity mix. The country has an installed capacity of nearly 2.4 GW, where 90% of the total power is generated from hydropower. Solar only contributes 1% of the country’s electricity mix, according to the International Renewable Energy Agency (IRENA).

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