HomeRegional NewsSouthern AfricaBotswana in talks with South Africa power link clients

Botswana in talks with South Africa power link clients

The construction of
a new coal-fired
plant in Botswana
15 October 2008 – Botswana’s 1,200 megawatt project to supply power domestically and to a South African utility could start development work as soon as March 2009.

Officials are in price negotiations with the main potential customers and will move forward once a price has been set, Botswana’s deputy permanent secretary Jacob A.R. Thamage told Reuters recently.

"Financial closure is a moving target, but we are still aiming for March next year," Thamage said. "Our biggest challenge is coming to an agreement on the tariffs with our main off takers."

Botswana Power Company and South Africa’s Eskom are the primary offtakers of the new plant.

Tamage did not provide an estimated cost of the project, he said that while financing may cost more because of the turmoil in global markets and tightening credit, the project would move forward because of the demand for power in the region.

"The power crisis is such that it is so bad, mines in South Africa have had to shutdown," Tamage said.