Chinese giant takes over 300 MW project
Thursday, March 04, 2010
With the 1 200 MW coal-fired Mmamabula Energy Project (MEP) hamstrung by South African bureaucracy, CIC Energy last week announced it would fast-track the development of a 300 MW power station for domestic consumption purposes.
The new station - which will also be coal-fired - will leverage on the technical groundwork done for MEP and seek a Power Purchase Agreement with the Botswana Power Corporation and financial input from debt and equity partners.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...