Budget; Energy gets lion's share

BABOKI KAYAWE
Staff Writer | Wednesday February 10, 2010 00:00

Minister of Finance and Development Planning, Kenneth Matambo on Monday extended an olive branch to the struggling sector by allocating the highest development budget chunk of approximately P3.5 billion to the Ministry of Minerals, Energy and Water Resources. The share constitutes 28.7 percent of the total 2010/2011 development budget.

Out of that amount, P1.4 billion has been channelled to the expansion of the Morupule 'B' Power Station. Delivering the budget speech, Matambo alluded that universal access to energy and water has the potential to unlock the country's ability to engage in productive economic activities at grass root level. 

President Khama said last November when addressing the nation, that the country's electricity supply is to remain under stress until the completion of the first leg of the station due in 2012. Presently, Morupule contributes only 120 Megawatts (MW) of the 500 MW electricity the country consumes, with 250 MW being sourced from South Africa. Before, Eskom supplied 350 MW but with effect from last December, it reduced to 250 MW.  Access to electricity in Botswana stands at 56 percent of the population. Last year, government introduced the National Electricity Connection Standard Cost (NECSC) of P5 000 in both rural and urban areas. A national electrification fund will be established during this financial year to implement the initiative and a levy of 5 thebe per kilo-watt per hour will be charged on monthly electricity consumption by every consumer with effect from this April.

Water Planning and Development takes P1.05 billion which will mainly cover three ongoing dam projects of Dikgatlhong, Thune and Lotsane with capacities of 400 million cubic metres, 90 million cubic metres and 40 million cubic metres respectively. These dams are meant to alleviate water shortage for domestic and industrial consumption. Emergency Power takes the third largest portion within the Minerals, Energy and Water Resources ministry with a sum of P610 million, Major Village Water Supply takes P219 million and North-South Carrier at P250 million. These five projects account for 99 percent of the Ministry's budget.