04 Feb 2016

The total cost of Morupule B Power Station at the time of tender award was P7.4 billion, the Minister of Minerals, Energy and Water Resources, Mr Kitso Mokaila has said.

The minister said the amount, however, does not include associated projects such as transmission lines and water supply projects.

He said the four units of the 600 MW coal fired power station were to be completed on different dates with unit one due on January 15, 2012.

Unit two was scheduled for completion on April 15, 2012, unit three and four due on 15 July and 15 October respectively.

Minister Mokaila said the power station was completed through taking over of the last unit on 4 May 2014 and said, however, it has had delays.  Unit one was delayed by 18 months, unit two by 25 months and unit three and four by 12 months and 11 months respectively.

The minister said the EPC contractor, China National Electric Engineering Company (CNEEC), contributed to the delays, adding that some were beyond the control of either CNEEC or Botswana Power Corporation (BPC).

He said the power station was currently under a 24 month liability period which would end in June this year.

“The liability period will be accordingly extended for the contractor to make good the outstanding defects, some which impact the reliability and availability of the power plant,” he said.

Mr Mokaila said there were no cumulative cost overruns as the project cost was on a fixed lump sum basis.

The minister said the proposals from the contractor to remedy the defects were being evaluated.

He said should the proposals be accepted, there would be no cost to BPC or the government as they would already be covered under the contract.

The minister said defects could be remedied through third parties, which would require BPC or the government to pay and claim the costs from the EPC contractor.

The minister said it was expected to take three years to remedy the defects as it requires taking one unit out of service at a time whilst three were running. Selebi Phikwe West MP, Mr Dithapelo Keorapetse had asked the minister to state the total cost of Morupule B Power Station project at the time of tender award.

He also asked the minister to state its completion date at the time of tender award, and the total length of time by which the project was behind schedule.

The Selebi Phikwe West MP also wanted to know the total cumulative cost overruns to date, and the estimated amount of work in progress. ENDS