Mmamabula project delayed again

30 July, 2009 in Botswana, Business

source: The Botswana Gazette
Written by JFG
Friday, 31 July 2009 00:00

Eskom still to sign purchase accord

CIC Energy has announced that the first power from its Mmamabula project could be delayed until early 2014 after it failed to conclude a purchase agreement with Eskom, the South African utility provider.

The Toronto (Canada) and Gaborone listed company had initially planned for commercial operation at the coal-fired power plant in Botswana to start early 2013 and help ease power shortages in the Southern African Development Community (SADC) region.

For Mmamabula to come on stream in 2013, CIC has to sign a Power Purchase Agreement (PPA) with Eskom by the end of September this year but Eskom has advised CIC Energy that discussions with the South African government on a sustainable funding model are still ongoing, and that while Eskom supports the role of Independent Power Producers (IPPs) like CIC Energy, until such time as the funding model has been agreed with the appropriate stakeholders, Eskom cannot commit itself to the purchase of [continue reading]

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