Morupule B expansion stalled as contractor demands P8bn surety

Deadlocked: Governement and the contractors are disagreeing over a sovereign guarantee
Deadlocked: Governement and the contractors are disagreeing over a sovereign guarantee

A Japanese contractor that was awarded the tender to expand Morupule B power plant by another 300MW (Unit 5&6), Marubeni Corporation is demanding a P8.5 billion ($804 million) surety upfront as security for any potential payment defaults by the struggling Botswana Power Corporation (BPC).

Unit 5 and 6 is Botswana’s first Independent Power Producers (IPP) project where the contractor funds construction of the power station and recoup their investment from selling power to BPC.

Construction of the plant was supposed to have started four months ago but in what is likely to be an embarrassing case of oversight by government officials and their legal advisors, it has emerged that a provision to award a sovereign guarantee to the contractor was erroneously included in the tender. This goes against government policy, which stipulates that Botswana does not offer such kind of security.

Editor's Comment
Inspect the voters' roll!

The recent disclosure by the IEC that 2,513 registrations have been turned down due to various irregularities should prompt all Batswana to meticulously review the voters' rolls and address concerns about rejected registrations.The disparities flagged by the IEC are troubling and emphasise the significance of rigorous voter registration processes.Out of the rejected registrations, 29 individuals were disqualified due to non-existent Omang...

Have a Story? Send Us a tip
arrow up