Stalemate over Morupule B's US$800m expansion goes to OP

The pension fund wants a piece of the action
The pension fund wants a piece of the action

The country’s highest office has entered the four-year deadlock over whether government should go ahead with the US$800 million (P8.6 billion) expansion of Morupule B; several highly placed insiders have confirmed to BusinessWeek.

Two Asian mega-corps – Marubeni from Japan and Posco from South Korea – won the tender to expand Morupule B by 300MW in 2015 and were due to have begun work in January 2017 on a 42-month contract.

While Morupule B currently has four units capable of producing 600MW, it has never produced that much due to frequent breakdowns and is due to undergo intensive repairs over the next four years. The Asian joint venture meanwhile has still not kicked off due to a dispute over a government support agreement required for the two firms to reach financial close.

Editor's Comment
Watch your tongue Mr President

While his leadership has brought about significant progress and development, it is imperative that he exercises greater caution in his choice of words, particularly when addressing sensitive matters.One of the primary concerns is the potential impact of his remarks on Botswana’s relationship with De Beers, the diamond mining giant that plays a crucial role in the nation’s economy.The partnership between Botswana and De Beers has been mutually...

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