Govt doubles Jindal’s 300MW contract

Pen to paper: Jindal Africa country director, Neeraj Saxena and Kgoboko sign the 300MW PPA PIC: MORERI SEJAKGOMO
Pen to paper: Jindal Africa country director, Neeraj Saxena and Kgoboko sign the 300MW PPA PIC: MORERI SEJAKGOMO

Government has doubled its contract with Jindal Africa and now requires the firm to deliver 600MW of coal fired electricity, in a project that will be the country's largest Independent Power Producer (IPP) initiative.

As an IPP, Jindal will carry the costs of building the power station, running and maintaining it, while selling the power to the Botswana Power Corporation (BPC) under an agreement known formally as a Power Purchase Agreement (PPA).

The PPA for the initial 300MW plant was signed this morning and will cover 30 years, with Jindal expecting to spend more than $1 billion on the coal mine, power station and associated infrastructure.

Editor's Comment
Micro-procurement maze demands urgent reform

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...

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