26 Feb 2017

Minister of Mineral Resources, Green Technology and Energy Security, Advocate Sadique Kebonang has told Parliament that there would be a divestment of financial interests in the 600MW Morupule Power Station as well as procurement of independent power producer.

Advocate Kebonang said ‘this will be a divestment and not a mere sale or disposal of an asset, should a divestiture be found to be viable.’

Responding to question in Parliament as to how much Morupule was being sold for, he said the aim was to negotiate with the Engineering, Procurement and Construction (EPC) contractor to take over the asset as well as the associated liabilities.

He said therefore, the price of the plant would be negotiated.

He said the divestment and procuring of the Independent Power Producer were being done in line with the provisions of the PPADB Act. “In this regard, approvals are being sought from PPADB for a direct appointment.

The process will also entail a re-allocation of project risks, as the operations and maintenance risks are better managed by the EPC contractor,” he said.

Advocate Kebonang further said as already advised, the divestment and procuring of the independent power producer were being done in line with provisions of PPADB Act.

MP for Francistown South, Mr Wynter Mmolotsi had wanted to know how much Morupule was being sold for, where the sale was being advertised and whether Parliament had been consulted on the sale. ENDS