Breakthrough looms in Morupule B P8bn expansion stalemate

The two Asian mega-corps – Marubeni from Japan and Posco from South Korea – won the tender to expand Morupule B by 300MW in 2015 and were due to have begun work in January 2017. Morupule B currently has four units capable of producing 600MW and the new project would have added two more.

However, a dispute with government over guarantees and other commitments for the project has meant a prolonged delay with government threatening to put the project on the backburner, arguing that the country was being asked to shoulder an unfair proportion of risk for the project. This week, senior officials in the Ministry of Mineral Resources, Green Technology and Energy Security revealed that negotiations were reaching a head with the Asian mega-corps, and other key central government units.