Eskom has secured the rights to purchase 70 percent of the electricity to be generated from the soon-to-be constructed multi billion Pula Mmamabula Coal Fired Power Station in Botswana.

Moreover, Eskom could still negotiate for the purchase of the remaining 30 percent of the electricity due to BPC, in case the latter does not need it, according to BPC chief executive, John Kaluzi.

In September last year when addressing the South African Parliament, President Festus Mogae pleaded with his South African counterpart, Thabo Mbeki, not to invest in the development of a "rival" power station in his country and instead buy into the Mmamabula project.

He said; "Instead of building rival power stations, you can easily expand the exports of your high quality coking coal to Japan and India, both of which countries need it badly. As we all know, 80 percent of any income generated by Botswana would be spent on South African goods and services."

The plea worked, and almost immediately after, there was heightened interest in the Mmamabula project, which has now resulted in its establishment.

However, Eskom did not stop the development of other power stations, which its chief executive Thulani Gcabashe says is justified looking at the need for more electricity generation.

Gcabashe insisted that the building of more power stations should not be seen as rivalry, but rather as complimenting ones.

He told Mmegi at Monday's signing of the Inter-Utility Memorandum of Understanding between Eskom and BPC that it would take at least 20 years of investments in power generation before they could talk of rivalry.

He said: "The power shortage looming in the region is of such a nature that it will take many years before we can talk of rivalry in power stations," he said revealing that it would require an investment of 2000 mega watts of electricity per annum for the next 20 years to fill the void in the growing market for electricity.

"We don't see these projects as rivals," he said further pointing to the construction of another electricity generating project at Lephalale in South Africa, which is at an advanced stage.

Eskom, as the lead consumer of the expected electricity to be generated from Mmamabula Power Station is a major player in the project and would therefore have a say even in the formulation of standards relating to the construction of the station.

The construction of the P34 billion station by a private investor, CIC Energy plant, is expected to start in early 2008, after the completion of major agreements.

The first output from the station is expected in 2011 and the first phase would have an output of 3600 mega watts.