Mmamabula project acquisition gets nod
Thursday, April 09, 2015
Competition Authority CEO Thula Kaira
Through a special purpose vehicle (spv) specifically created for the transaction, Jindal will offload 74 percent in what is potentially Botswana’s largest coal energy and mine project to South Africa’s Glendal Trading.
In a statement released this week, the CA said they had determined to unconditionally authorise the proposed transaction on the grounds that analysis has shown that there were no substantive competition concerns that might arise in the market for the production of energy and coal on account of the proposed acquisition in Botswana.
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...