PPADB approves P8bn Morupule B expansion tender

Construction if the new Morupule plant is expected to be complete by 2020
Construction if the new Morupule plant is expected to be complete by 2020

The Public Procurement and Asset Disposal Board (PPADB) has approved a request by the Ministry of Minerals Energy and Water Resources to award a $800 million (P8.7 billion) tender for expansion of the Morupule B Power Station to a consortium from Asia.

In a notice published in the Daily News yesterday, the PPADB said a joint venture between Japan’s Marubeni and South Korean, Posco Energy has won the bid to expand the Morupule B Power Station by a further 300MW. The consortium will supply Botswana Power Corporation (BPC) with power over a 30-year period at a cost of P812.56 per Megawatt hour.

“A request by the Ministry of Minerals, Energy and Water Resources to award the tender at Morupule to Marubeni-Posco Energy consortium at a levelised cost of electricity of P812.526 per Megawatt hour (MWh) has been approved,” said the PPADB. A MWh is equal to 1,000 kilowatts of electricity used continuously for one hour.

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