Mmegi Online :: CIC Energy defers some work at Mmamabula
Banners
Banners
Banners
Banners
Last Updated
Thursday 18 October 2018, 18:40 pm.
Banners
CIC Energy defers some work at Mmamabula

The promoters of the Mmamabula Energy Project, CIC Energy have finally succumbed to the chaos in the South Africa energy sector and deferred some of the projects that were already running.
By Staff Writer Fri 19 Oct 2018, 03:34 am (GMT +2)
Mmegi Online :: CIC Energy defers some work at Mmamabula








In a statement released this week, president Greg Kinross says that CIC Energy has deferred certain financial, legal and engineering activities related to the Mmamabula energy project, in Botswana, with the company's decision driven by the South African government's development time-line for its energy sector integrated resource plan.

Kinross referred to the "slow pace of the regulatory process in South Africa" as "frustrating" but however said that the "spending deferrals and our C$41-million treasury give us the flexibility to weather this delay".

 This development is likely to further frustrate Botswana's plans to cover its energy supply-demand gap as the country was expected to get 25 percent of the project's 1200MW first phase.

Initially, the Mmamabula project was to supply electricity to South Africa and Botswana by as early as 2013 but after the latest development the period will further be delayed by a couple of more years.

Recently South African Minister of Energy Dipuo Peters said preparations and consultations for the Second Integrated Resource Plan (IRP2), which CIC was hoping to factor in its project, would only be completed next year.

"Based on the company's understanding of the regulations, an approval of the Mmamabula energy project by the Department of Energy will only be possible following the completion and gazetting of the IRP2, and then only for commencement of commercial operations no earlier than 2014 (or such later period as may be indicated in the IRP2, once completed)," said Kinross in the statement.

This is the latest in a

Banners

string of delays on finalising the commercial terms for CIC to go ahead with the coal-fired station which would sell the bulk of its power to Eskom.

Before CIC can proceed with Mmamabula, it must sign a PPA with Eskom and it had hoped to finalise that agreement by September last year but this was pushed out to end of March 2010.

As a result of these developments, CIC Energy said it had reassessed its current programme of project development activities for the Mmamabula project, designed to facilitate a rapid achievement of financial close and start of construction once regulatory approval had been received.

On the back of the latest development,  the company said it had determined that it would be prudent to defer those project development activities unrelated to the regulatory approval process in South Africa, until such time as the IRP2 had been completed.

This would be implemented by the deferral of activities that were being performed by the financial consultants, legal consultants and engineering consultants who were assisting the company in the development of the Mmamabula project.

NM Rothschild & Sons is  the project's financial adviser, while South African banks Absa Capital and Standard Bank were unveiled as the mandated lead arrangers for the commercial bank facility.

CIC Energy said that its decision did not affect its programme of project development activities for the Mmamabula export coal project and the coal-to-hydrocarbons project, which the company intended to continue as previously planned.

Subscribe to our Newsletter
Banners
Banners
Banners


Banners
Banners
Subscribe to our Newsletter
have a story? Send us a Tip
Banners
  • Previous
    Next
    Masa Centre
    ::: Friday 19 Oct - Friday 19 Oct :::
  • Previous
    Next
    Riverwalk
    ::: Friday 19 Oct - Friday 19 Oct :::
  • Previous
    Next
    Gamecity
    ::: Friday 19 Oct - Friday 19 Oct :::
Selefu
BBC
Banners
Banners
istanbul escort