06 Mar 2024

The minerals and energy ministry has collected about P11.77bn as of January, says Minister of Minerals and Energy, Mr Lefoko Moagi.

He said the collection was 62 per cent of the P19.1bn revised budget revenue for the 2023/24 financial year.

Presenting before the committee of supply this week, Mr Moagi said the initial approved revenue budget of P15.8bn was revised ‘upward after the mineral market showed some improvement’.

The minister said for the 2024/25 financial year the projected revenue collection was P18.4bn, and that it represented a decrease that was expected from mineral royalties.

On the current financial year allocations, he said the ministry was allocated P428.8m for recurrent expenditure and that P267.9m had been spent.

As for the development budget, he said the ministry was allocated P2.602bn of which P2.545bn had been spent.

He said their major components of expenditure were government support to Botswana Power Corporation (BPC), cross border electricity supply projects and the expansion of the Francistown petroleum storage depot.

Presenting estimates for the 2024/25 financial year, Mr Moagi requested about P2.727bn for both the recurrent and development budget.

Mr Moagi noted that the P339.7m recurrent budget estimates represented a decrease of P89m. 

He attributed the decrease to the approved supplementary funding of the 2023/24 budget amounting to P64.7m as well as the annual subventions to Botswana Energy Regulatory Authority (BERA) amounting to P53m.

Mr Moagi also said BERA had been excluded from the 2024/25 budget as the parastaltal would now start financing its operational costs from internally generated revenue.

He said out of the P339.7m, the largest share of P278.6m was for the ministry headquarters, which included estimates for Botswana Geoscience Institute and Mineral Development Company Botswana as well as the Department of Mines and the Department of Energy.

As for the development budget, he requested about P2.388bn, saying a significant portion amounting to P1.5bn was proposed for BPC to cover power importation as well as to enable it to meet its loan repayment obligations.

Other projects include phase two of the north west electricity grid, rural electrification, network extensions as well as network reinforcement projects. 

He said it also included the construction of oil storage depots at Francistown and Ghanzi.

Providing a synopsis of project progress, he said the Francistown depot, which was under construction, would provide an additional 60 million-litre storage capacity. 

He added that the estimated total project cost was P1bn and was expected to be completed by December.

As for the Ghanzi depot, he said it entailed the development of a 60 million-litre storage facility and was expected to be completed by March 2025 at an estimated cost of over P700 million. 

He said the Tshele Hills depot entailed the development of a 187 million-litre storage facility through a Public Private Partnership model anticipated to cost approximately P3.5 billion. 

He noted that the project was at a tendering stage and was expected to be completed by March 2027.

On other issues, he said his ministry continued to electrify new villages and extend networks in already electrified villages to cover the growth of villages.

He noted that to date 457 out of 565 villages had been electrified, adding that in the current financial year six new villages were being electrified and network extensions were being done in 27 villages.

He further said 20 new villages would be electrified and network extensions would be done in 92 villages in the coming financial year.

The minister further noted that during the 2022/23 financial year, the standard connection fee was reduced from P5 000 to P2 500 for the zero to low income households in order to increase the uptake of electricity.

However, he said the rate of uptake was still low, hence government approved to have free service connections to all households with effect from April 1. 

He added that those not in the national grid would access a solar package to facilitate their access to electricity. Ends