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Gaborone - Botswana's state-owned energy utility, Botswana Power Corporation, said on Thursday it had signed a contract with leading Chinese firms for the development of a 600 megawatts (MW) power station.
The utility said it had agreed with China's construction consortium, China National Electric Equipment Corporation and Shenyang Blower Works Electro-Mechanics Import and Export Co (the CNEEC-SBW Consortium) to build the power station.
The Morupule B power station is part of Botswana's strategy to secure power supply by expanding the existing generating capacity as well as improving the southern African country's national self-reliance.
The power station will have four 150MW units.
It will be a coal-fired and air-cooled power plant and will be constructed adjacent to the existing 132MW Morupule Power Station (Morupule A) near the town of Palapye, some 290km from the capital Gaborone.
In a statement, Ponatshego Kedikilwe, the minister of minerals, energy and water resources said that the Engineering, Procurement and Construction (EPC) contract signed on November 15 was "a major step" in Botswana's power generation efforts.
"Project funding is being arranged and secured by government through the ministry of finance and development planning. The ministry has already made available 1.5bn pula to facilitate early mobilisation of the project," he said.
According to Kedikilwe, it is expected that the EPC contractor will start mobilising to site in February 2009 and that the last of the four 150MW units will be delivered after a period of 42 months.
Apart from the Morupule B station, Botswana is also undertaking a 400KV transmission line infrastructure plus associated substations and a 35 borehole well field plus associated water reticulation infrastructure.
The country is also seeking coal supply arrangements to meet increased coal requirements which will lead to the expansion of the Morupule Colliery mine and limestone supply.
CNEEC is a major government of China-owned EPC company that undertakes EPC contracting and project management at home and abroad in thermal power and hydropower stations, as well as transmission and distribution systems, including design and construction supervision.
- Reuters
