HomeIndustry SectorsGenerationBotswana's Mmamabula project responds to SA's RFI

Botswana’s Mmamabula project responds to SA’s RFI

Greg Kinross,
President, CIC
30 March 2012 – CIC Energy Corporation, which is engaged in the advancement of the Mmamabula energy complex at the Mmamabula coal field in Botswana, says it recently submitted a response in relation to the planned 1,200 MW Mmamabula energy project. This was a response to the Request For Information (RFI) released by South Africa’s Department of Energy (DoE) and the National Treasury.

The Mmamabula energy project is a proposed 1,320 MW (gross) or 1,200 MW (net) power station and integrated coal mine project being developed adjacent to the coal resources held be CIC Energy. The power generated is intended for export to South Africa. The Mmamabula energy project is the most advanced base-load independent power producer (IPP) project in the region. CIC Energy has invested more than US$100 million in this project.

On March 5th, 2012 South Africa’s DoE and National Treasury publicly issued the RFI in relation to potential power projects based in South Africa and neighboring countries. The RFI was addressed to developers of coal-fired power stations, as well as cogeneration facilities, gas-fired power plants and hydroelectric plants. The DoE advised that it plans to use the responses to the RFI to evaluate the state of readiness of various projects able to supply electricity onto the South African grid prior to March 2019 and to then formulate a procurement process in relation to such projects.

Greg Kinross, president of CIC Energy says, “We anticipate further developments later this year as the RFI indicates that the DoE intends to issue a request for proposals for new power projects from developers within the next six months. We continue to believe that given its advanced stage of development and certain key contracts in place such as the EPC contract with Shanghai Electric, the Mmamabula energy project can make a meaningful contribution towards the country’s urgent new capacity needs.”

CIC Energy has also re-initiated discussions with potential equity investors to participate as partners in the Mmamabula energy project.

In addition, in recent months the government of Botswana publicly announced it needs 600 MW from new IPP projects. The government’s stated intention is to purchase 300 MW from a brownfields IPP project (with coal sourced from the Morupule colliery) and an additional 300 MW from a greenfields project elsewhere in Botswana, which potentially could be CIC Energy’s domestic power project. The Botswana government’s indicated timelines for production are 2015 and 2018 for the brownfields and greenfields IPP projects respectively.

CIC’s domestic power project is a proposed 300 MW (gross) power station and integrated coal mine project in Botswana. The power generated is intended for consumption in Botswana.