BPC could scrap Morupule B Phase II

MBONGENI MGUNI
Staff Writer | Friday September 24, 2010 00:00

 

Originally, it was planned that Morupule B Phase I and II would jointly add 1,200 to the national grid and - together with 120 megawatts from Morupule A - would have sealed the nation's power needs in the long-term.

This week, however, it was revealed that strategists within the BPC and government are considering scrapping Phase II and instead adding two units to Phase I. Thus, Phase I would consist of 900 megawatts when complete.

BPC Director of Transmissions, Edward Rugoyi said the possibility of adding two units to Phase I and suspending Phase II's development was currently under assessment.

'In our long term plans, Morupule B would have been undertaken in two stages, both being 600 MW. We have done a feasibility study for Phase II which shows that the project is viable; however the project would also result in a lot of surplus and we would require an export market, in addition to the costs of plant construction,' he told a Debswana energy conservation meeting on Tuesday.

'Instead of four more units under Phase II, we are looking at two units added to Phase I, which can take us beyond 2020.'

Analysts believe part of the consideration against Phase II is the punitive cost government would have to bear.Already, government is indebted to the African Development Bank, World Bank and the Industrial and Commercial Bank of China in the development of the P11 billion Morupule B Phase I. Government has also committed P1.4 billion of its own resources towards the project.

'Government and the BPC are considering the wisdom of another heavy investment in Morupule B Phase II, particularly at a time when the grace period from the Phase I loans could be expiring and repayments required,' said one source close to the latest developments.

'On the other hand, Phase II's development is consistent with government's desire for electricity self-sufficiency in the long term. The power station is part of the NDP 10 and would reduce reliance on independent power, which can be costly sometimes.'

Morupule B Phase II is among the BPC bouquet of in-house and external strategies to secure the country's power needs and avoid the punitive shortages that gripped the nation starting in 2008. Other strategies include the soon-to-be-commissioned 90 MW duel fuel power station in Orapa, the 300 MW Mookane Domestic Power Project and the 200 MW solar power plant.