Morupule B sale deal hits the rocks

Government, as the sole shareholder in the Botswana Power Corporation, had been leading talks with China Machinery Engineering Corporation (CMEC), a state-owned company and related entity to China National Electrical Engineering Corporation (CNEEC), which built the 600MW power station.

Information reaching Mmegi indicates that talks broke down largely due to differences over the offer submitted by the Chinese for the power station. The two parties had already clashed over terms of the deal where government wanted the Chinese to commit to using non-Chinese material for the remedial works at the power station.