Asian giants dominate race for 300MW tender

MBONGENI MGUNI
Staff Writer | Friday June 28, 2013 00:00

Yesterday, a list of the bidders made available by the PPADB reveals that several multi-billion US dollar Asian groups with global reach are in the running to build Botswana's biggest Independent Power Producer (IPP) project.The list has two energy development groups from Japan, one from South Korea, another from Saudi Arabia, one from China and subsidiaries of Indian giants, including the current developers of the Mmamabula Energy Complex.Other bidders are from firms based in the United Kingdom, Australia and a possible South African consortium, as well as a joint venture between Tata Power of India and South African energy titan, Exxaro.On the list is Sumitomo Corporation, a 94-year-old Japanese group boasting a presence in 65 countries and assets of nearly eight trillion yen (P710 billion).

The other Japanese firm is  Marubeni Corporation, whose Power Projects and Infrastructure Division has 50 years experience in the IPP arena.Marubeni Corporation boasts assets of about 5.7 trillion yen (P506 billion) and a net income for the full year ended March 2013 of 206 billion yen (P18.3 billion).Also on the PPADB'S list is Korea Electric Power Corporation, which is South Korea's largest electricity utility. Known as KEPCO, the group has total assets of US$133.2 billion (P1.2 trillion) and experience in power generation and plant management around the world.Another firm, Nava Bharat Singapore has a total global investment exceeding US$1 billion in various energy projects, including a 300MW coal fired project in Zambia.

Cennergy Pty Ltd, another of the bidders, is a one-year-old joint venture between India's largest integrated private power utility, Tata Power and South African giant, Exxaro. At its launch last year, principals of the SA-based joint venture firm said it would focus on 'development, ownership, operation, maintenance, acquisition and management of electricity generation projects in South Africa, Botswana and Namibia'.

Other names in the race for the 300MW contract include UK-based Aldwych International, Endeavour Energy of Australia, Magala Power Consortium, ACWA Power joint venture and SJ. Berwin.Familiar faces on the list include Jindal Steel and Power, the current holders of Mmamabula Energy Complex rights, and Sinohydro Resources, a wing of the construction group actively involved in the local economy.Minerals, Energy and Water Resources officials bids will now be taken for evaluation, before they are resubmitted to the PPADB for adjudication.

The latest developments follow government's decision in 2010, to scrap a plan for a 600MW Morupule B Phase II and rather extend the current power station by 300MW to cater for forecast shortages in 2016.The successful bidder will design, finance, construct, own, operate and maintain a 2 x 150MW coal fired power plant to be built at the pithead of Morupule Coal Mine. The bidder will also enter into Power Purchase Agreements (PPA) with the Botswana Power Corporation outlining the tariff charge for power produced over the duration of the contract.