Payment dispute delayed Morupule B – report

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A payment dispute between the Botswana Power Corporation (BPC) and the China National Electric Equipment Corporation (CNEEC) is said to have also contributed to the delay in the completion of the 600MW Morupule B power project.

CNEEC is the Chinese contractor that was engaged to build the power station in a contract worth US$970 million (P8.3 billion). According to the recently released Auditor General’s report, the contractor had charged the corporation P114 million, for “reimbursable expenses” relating to the February 2013 to June 2013 period.

The corporation is said to have disputed this claim as the contractor had agreed in April 2013 not to make claims.

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