Monday, June 24, 2024

Botswana issues tender for 300 MW greenfield power project

The Botswana government seems to be determined to make power shortages a thing of the past as it has published another tender for the expression of interest (EOI) for the development of a ‘greenfield’ power station.

The tender and expression of interest for the 300 MW Independent Power Producer project follows on the heels of similar tender for a Brownfield project. The tender is expected to pit strength against international power companies sitting on large coal deposits in Botswana mainly from Asian and Australian origins.

Hodges Resources, Shumba Coal, African Energy, Jindal are some of the resources companies sitting on large coal resources with some at exploration stage and others near term producers.

African EnergyÔÇöwhich earlier this week said it has submitted a bid together with a South African Black Economic Empowerment (BEE) partner to supply power to Africa’s largest economy, which is failing to meet its growing energy needs – is one company that has declared its interest to compete for the tender.

“The EOI seeks information on how a preferred Independent Power Producer (IPP) could develop a 300MW coal?fired power station at a completely new (i.e. Greenfield) site in Botswana,” said African Energy, which said it intends to submit tender documents.

The EOI seeks information from those projects that could deliver power into the grid as early as 2016 and no later than 2019.

Botswana wants to put the energy crisis of 2012 and 2013 behind by building additional coal powered power stations and take advantage of vast amounts of coal reserves sitting estimated at 212 billion tones.

The P11 billion 600 MW Morupule B power project has been a disappointment although, Minerals, Energy and Water Resources minister, Kitso Mokaila, and the Botswana Power Corporation say its problems have been resolved.

“The release of the EOI provides a definitive timeline for completion of project joint venture negotiations and preparation of project development, financing and construction arrangements,” said African Energy.

African Energy said its proposed 300MW project is to be located at the Company’s Sese coal project, with coal supply from Block?C. Measured resources defined at Sese Block?C alone contain enough coal to support an estimated 2,400MW of generating capacity for over 25 years, thereby providing substantial expansion opportunities.

African Energy recently concluded the purchase of Mmamantswe coal project from Aviva Corporation.

Sese Coal & Power Project is located 50km to the south of the mining hub of Francistown.

The deadline for submissions is 27th November 2013 and, while MMEWR expects to determine its IPP procurement process from January 2014, ‘it has indicated that the information provided may allow it to identify projects that could be engaged earlier’.


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