Morupule B power station is seen as the sustainable long-term solution to Botswana's power shortages, particularly in the face of the decreasing imports from South Africa.
Speaking at the signing ceremony in Gaborone yesterday, Finance and Development Planning Minister, Kenneth Matambo said the project is of great strategic importance to the country, as it will contribute to the national energy security and spur economic growth, thus improving the competitiveness of the national economy. "The direct project beneficiaries will be the households, mines and manufacturing and the economy at large. "In addition the availability of reliable electricity will allow the country to continue its rural electrification, with a view to increasing national household access from 47 percent to 80 percent by 2016 and thus contributing to reducing rural poverty," he said. The World Bank loan, which will be repaid in 30 years, with a grace period of four years, will finance the purchase and installation of transformers, a transmission line from Morupule B to Phokoje substation and a water pipeline from the new Mmashoro wellfield to the project site. The interest rate is the London Interbank Offer Rate (LIBOR) plus 40 basis points.
