Jindal finalises P15bn funding for Mmamabula
Mbongeni Mguni | Monday October 13, 2025 06:00
The eagerly-awaited power project, one of the two final coal-fired plants planned for the country, is being developed as an Independent Power Project with Jindal carrying the costs of building the power station, running and maintaining it, whilst selling the power to the Botswana Power Corporation (BPC) under an agreement known formally as a Power Purchase Agreement (PPA).
On Tuesday evening, Jindal officials celebrated financial close on the project, a term that refers to the finalisation of all financial arrangements for a project, which allows the project to be implemented.
With the recent financial close of P15 billion, the project underscores both the opportunities and challenges that come with large-scale infrastructure investment.
Neeraj Saxena, the country director for Jindal Energy Botswana, said prior to the financial close, the project had already attracted over P3 billion in early-stage investment.
He emphasised the scale and significance of the funding that has been sealed towards the project.
“This is real investment coming into the country,” Saxena said. “Our lenders from India have visited the site, appreciated the progress, and confirmed their commitment of P15 billion towards the project.”
The Mmamabula Energy Project is one of the mega-investments aimed at lifting the country to electricity self-sufficiency and supporting sustained regional exports.
Speaking at the event, Labour and Home Affairs minister, Pius Mokgware, said electricity access is a matter of both development and security:
“If you don’t have power, you don’t have life. Power affects individuals, communities, and the economy. Strategically, for security reasons, you cannot be depending on other people to give you light,” he said.
Mokgware also highlighted the country’s regional position, saying Botswana can leverage energy infrastructure for broader regional influence.
“Investments here can reach other countries like Zimbabwe, Zambia, South Africa, even the DRC,” he noted, illustrating how energy planning intersects with geopolitical and economic considerations.
Officials at the event said while it was expected that over 1,800 jobs could be generated from the project, these could reach up to 5,000. In addition, the project is expected to yield more than P650 million in contracts awarded to citizen-owned companies.
Mokgware stressed the importance of ensuring that the project’s benefits extend beyond the construction sites.
“Communities have allowed you into their area. This is the time now we should also contribute to their lives,” he said, highlighting the social dimension of infrastructure projects.
Looking forward, Jindal plans to expand the plant’s capacity from 300 MW to 600 MW, leveraging its rights to over three billion tonnes of coal in the East Mmamabula coalfields.
The Mmamabula Energy Project dates back to the 2000s when Canadian firm, CIC Energy, advanced various studies into coal exports and coal-fired power, before failing to secure critically needed support from South Africa as an offtaker.
Jindal took over the Mmamabula Energy Complex in 2012 and has been advancing work on several projects intended for prospecting licences in eastern Botswana.