25 March 2009 – Formal proposals for long term power purchase agreements have been submitted to Eskom and the Botswana Power Corporation (BPC) by CIC Energy, the developers of the Mmamabula project in Botswana.
According to an announcement made by CIC Energy, the company hopes to start supplying the South African grid by 2013.
This also meant that building on the project would have to start later this year. Shanghai Electric of China has been contracted to do the engineering, procurements and construction on the project.
The signing of agreements on long term power purchase are vital for unlocking investment for the independent power producer which will require funding primarily through debt.
Apparently 75% of the plant capacity of 1 320MW will be made available to Eskom.
CIC plans to start construction immediately after financial close, sometime in the third quarter of 2009.