Morupule B expansion stalled as contractor demands P8bn surety

Unit 5 and 6 is Botswana’s first Independent Power Producers (IPP) project where the contractor funds construction of the power station and recoup their investment from selling power to BPC.

Construction of the plant was supposed to have started four months ago but in what is likely to be an embarrassing case of oversight by government officials and their legal advisors, it has emerged that a provision to award a sovereign guarantee to the contractor was erroneously included in the tender. This goes against government policy, which stipulates that Botswana does not offer such kind of security.