24 May 2015

Minister of Minerals, Energy and Water Resources Mr Kitso Mokaila has admitted to serious challenges facing the energy sector in the Southern African Power Pool (SAPP).

The SAPP is a cooperation of the national electricity companies in Southern Africa under the auspices of the Southern African Development Community (SADC). 

The members of SAPP have created a common power grid between their countries and a common market for electricity in the SADC region.

Speaking on a live televised press briefing to update on water and electricity supply challenges and solutions, mineral sector and the Trans-Kalahari Railway line project, Mr Mokaila said delays in setting up the power plant at Morupule B was not an issue at hand but the nation had to appreciate that there was a general deficiency in the region.

He said most countries in the region were grappling to meet the power demands and through the Morupule B Power station government was striving to close the supply crisis.

“Morupule B is an attempt to meet this deficiency. If only our desire to have the project up and running at the proposed date of December 2012 then it could have been better. Contractual provisions delays remained our main concern and going forward we have a strong conviction that those entrusted with the responsibility will deliver,” he said.

Mr Mokaila said government set a budget of about P11 billion and contrary to some speculation did not go to waste. 

He said of the total budget P3 billion was for the construction of the transmission line and water reticulation projects all of which were done and completed within budget. He said they have implored a short term plan for the stability of the project while the long term plan will include the replacement and redesign of boilers.

He said what was currently worth noting was the power purchase agreement between Botswana and South Africa. He said the non-firm agreement between the two countries was 100 megawatts (MW) or anything Eskom could offer above that.

The Minister explained that Morupule A was expected to churn out at least 90MW by winter next year while government has also purchased the Matshelagabedi diesel project and planning to extend by another 35MW for a total output of 105MW.

Minister Mokaila also explained that government has floated a tender for the conversion of the Orapa diesel plant.

Developers of Orapa’s 90MW power station are pushing for the conversion of fuel feeding the turbines from diesel to Coal Bed Methane, an adjustment that will save in running costs.

He said Independent Power Producers have also shown a great interest with two companies offering a project that will result in an output of 500MW and 600MW respectively.

For his part chief executive officer of Botswana Power Corporation (BPC) Mr Jacob Raleru gave a brief perspective of the Morupule B plant project and progress made so far.

Quizzed on the legal recourse of the project Mr Raleru said they were following contractual provisions and have made demands on issues arising.

 He said they would wait until time elapses and take necessary steps where possible. 

In terms of operations and maintenance, the CEO said initial contractors CNEEC was to build the power station and not operate it.

However he said they had two options, either BPC maintaining and operating the project or engaging another company.

“At some point we thought it would be beneficial for CNEEC to build, operate, maintain and impart skills but that didn’t work out the way we planned. We took the decision to remove them and engage STEAG of Germany. 

The decision to engage STEAG did not impact on the cost because the cost of operation and maintenance was not in any way linked to the cost of construction of the Morupule B plant” he said.

Mr Raleru hinted out that CNEEC may not have followed set specifications and procedures in constructing the power plant.

He noted that the project was an investment that government has made which needed to be repaired with costs that were a fraction of the cost that was invested towards it. Ends