Wednesday, October 21, 2020

African Energy shortlisted to bid for Botswana 300 MW Greenfield project

African Energy, the coal exploration company, said this week it is among companies shortlisted to submit bids for Botswana’s ambitious Greenfield energy project.

The country is reeling from an energy crisis as Morupule B is faltering and failing to deliver the promised 600 MW project and the government is trying to bring onboard Independent Power Producers (IPPs).

Botswana government through the Ministry of Minerals Energy and Water Resources, headed by Kitso Mokaila has shortlisted the Australian company as one of those companies that will be invited to tender for the Greenfield project.

Already, the company and its consortium in 2013 submitted an Expression of Interest which will lead to a formal tender been issued by government. Under the deal, African Energy and ACWA Power have agreed to co?operate as a single consortium for the preparation and submission of an Expression of Interest (EOI) for the 300 MW Greenfield Tender Request announced by the Government of Botswana. This submission was made on 2nd October 2013.

“MMEWR has communicated an indicative timeframe for the invitation of bids from shortlisted parties for the 300MW Greenfield Power Project tender in late March,” the company said.

“The African Energy/ACWA Power consortium has been shortlisted to receive the bid invitation from MMEWR,” it added.

African Energy Resources Ltd and ACWA Power International formed a bid consortium in October 2013 and submitted an Expression of Interest for a 300MW coal?fired Greenfield Power Project tender in Botswana.

The Ministry for Minerals Energy and Water Resources (MMEWR) is currently finalising the appointment of its Legal Advisors and Transaction Advisors for this 300MW Greenfield Power Project.

African Energy Resources has already executed a Joint Development Agreement (JDA) with ACWA Power International for the development of a 300 MW power station and integrated coal mine to be located at the its Sese coal deposit in Botswana.

The company said it will retain an equity interest in the project post financial-close by virtue of the coal it has contributed to Sese Power, and derive an income stream from dividends paid to Sese Power shareholders. A non-binding MOU with a potential off-taker for the full output of the 300MW project has been signed to jointly evaluate the project.

“Assuming this indicative timeframe, and a successful bid outcome, consortium would be in a position to seek financial close on the project by year end.”

ACWA Power is a highly regarded international power generation and water desalination developer, investor, co?owner and operator. Its headquarters are located in the Kingdom of Saudi Arabia with projects spread globally. Its total contracted generation portfolio is 15,731 MW of power and 2.4 million m3/day of desalinated water with an investment value in excess of USD 23 billion.

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