05 Mar 2013

 

The Minister of Minerals, Energy and Water Resources, Mr Kitso Mokaila has requested Parliament to approve a sum of over P3billion.

The amount comprises recurrent and development budgets of over P359 million and over P2 billion respectively.

Presenting the budget proposals, Minister Mokaila said this year’s budget proposal exceeded that of the past financial year by over P283 million, an increase of 8.4 per cent.

He attributed the increase to the taking over of sewerage schemes by the ministry from the Ministry of Environment, Wildlife and Tourism.

The minister stressed the importance of providing reliable, affordable and good quality energy services without losing sight of the need to protect the environment.

Furthermore, Mr Mokaila noted that Botswana was a net importer of petroleum products, mainly through South Africa, adding that had led to the country experiencing shortage of fuel during periods of industrial action or supply constraints brought by shutting down of petroleum infrastructure.

To ensure security of supply, he explained that it was critical to source fuel through alternative routes of supply hence the authorisation of procurement of two million litres of fuel per month from Mozambique and Namibia for a period of six months.

“The construction of the national strategic petroleum depot at Tshele Hill is expected to commence in the first quarter of 2013/14,” he noted.

Minister Mokaila noted that considerable progress had been made in the setting up of the National Oil Company, whose main purpose would be to ensure availability of fuel in Botswana.

 On other issues, he explained that the prevailing power supply and demand mismatch in the country would continue to affect the economy until the 600MW Morupule B Power station has been fully completed.

He said the power station was supposed to be completed by December 2012 but this was not attainable and that it would be fully commissioned by July 2013.

The minister noted that in order to reduce the impact of power supply and demand mismatch, the Botswana Power Corporation had renewed the agreement with Eskom to supply 100MW on a firm basis and 200MW on a non-firm basis.

He explained that power was also supplied by the Orapa 90MW power station and the 70MW emergency power station in Matshelagabedi, albeit at a high cost as they use diesel fuel.

He further noted that independent power producers continued to show interest in developing power plants in Botswana following the amending of the Electricity Supply Act in 2007.

The minister pointed out that the national access to electricity had increased from 63 per cent in December 2011 to 68 per cent at the end of December 2012.

In order to avail electricity services to more people in the country, Minister Mokaila explained that his ministry was connecting 28 villages to the national grid.

He also explained that the takeover of potable water supply and wastewater was progressing according to schedule. ENDS