Chinese take major stake in new power project

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 everage 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. CIC Energy last week unveiled Golden Concord  Holdings Limited (GCL) as the new majority equity holder in Mookane Domestic Power Project (MDPP), revealing that the Chinese firm's affiliates would act as the construction contractor and operator of the planned power station. CIC Energy will remain a 30-percent equity holder in MDPP and will be responsible for overseeing the development and operation of the mine that will supply the power station. More strategic equity partners are expected in MDPP.