Morupule B P8bn contract dispute heads to Parly

Kebonang
Kebonang

The construction of Unit 5&6 at Morupule B is headed for a prolonged delay after it emerged this week that a P8.5 billion-guarantee dispute between government and the contractor that has stalled works so far will have to be resolved by Parliament.

Parliament is currently on recess and will only resume business in July. Japanese contractor, Marubeni and Co. was last year awarded the tender to expand Morupule B power plant by another 300MW (Unit 5&6), but, at the last minute, demanded a P8.5 billion ($804 million) surety upfront as security for any potential payment defaults by the Botswana Power Corporation (BPC).

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

Editor's Comment
Batswana need to do better to stop FMD

It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...

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