Jindal, BPC sign PPA for Mmamabula 300MW Power Plant

Jindal Energy beat Minergy Limited and Sese Power to win a bid to build a 300 Megawatt coal power generation station and sell power to state owned Botswana Power Corporation, government announced November last year.

A group of men shaking hands in front of a stage.

Jindal will now build, own, operate, and maintain the power plant, which will be supplied by its coal resource from Mmamabula coalfields. The company is in the process of developing a coal mine in Botswana’s south-eastern Mmamabula coalfields.

In a notice to the market last November announcing Jindal as the preferred bidder, Ministry of Minerals & Energy said “the contract is for the design, finance, construction, ownership, operation, maintenance and decommissioning at the end of its economic life, of a 300MW net greenfield coal-fired power plant in Botswana as an Independent Power Producer”

Jindal will finance construction of the plant which is estimated to cost over P13 billion and recoup its investments from selling electricity to the Botswana Power Corporation (BPC) under commercial terms which were officially signed at Phakalane Golf Estate Hotel on Tuesday.

Electricity from this multibillion pula power generation plant is expected to flow into the national grid in 2028, however Jindal says it is confident will deliver this landmark project before 2028.

Giving key note address at the Power Purchase Agreement signing ceremony, Minister of Minerals and Energy Lefoko Maxwell Moagi said approval has already been given to add another 300 Megawatt as the coal resource is abundant in Botswana’s Mmamabula Coal fields.

“When the feasibility was done, it was done for 600MW but the procurement went for 300MW,” Minister Moagi revealed to local journalists on the side lines of the PPA signing ceremony.

“Because the procurement had already been done for the 300, we went to Cabinet to seek an additional 300. “This is so that it ties into the procurement that’s already there, so it will go straight to Jindal rather than another procurement process. “This will also then assist in terms of economies of scale, getting things much faster and better for the country.”

“Our plan is to finish this project by 2026 instead of the agreed 2028,” Jindal Steel and Power’s Chairman Naveen Jindal said at the signing ceremony.

“There is no reason why Botswana, with all its coal resources, cannot supply the whole region and address the shortages in South Africa. We should explore the possibilities of going beyond the 600MW plant, he said.

The multi-billion-dollar O P Jindal Group is hitting the ground running to kick starts the long awaited Mmamabula Coal Project. Jindal holds mining license for about 3 billion tonnes of coal in the East Mmamabula Coal Fields.

The company is planning to carry out initial mining of 4.5 million tonnes per annum of coal and also to undertake related infrastructure works to support the mine and the power plant.

The Jindal’s Mmamabula Coal Mine will be Botswana’s biggest, just 300 000 tonnes above state owned Morupule which is currently on set to produce 4.2 million tonnes per annum following the commissioning of its Motheo project.

Morupule Coal Mine –– a unit of Government ‘s Mineral Development Corporation (MDC), however is targeting over 7.6 million tonnes per annum by 2027 as part of its 5-year strategy launched in October last year.

Botswana Power Corporation Chief Executive Officer Mr David Kgoboko said that by the time of its completion, the Jindal 300MW power plant will increase the country’s total baseload power to 820 Megawatt, inclusive of generation from state owned and BPC run Morupule A and B plants.

Morupule B, a 600 Megawatt capacity power plant, built at over P10 billion was commissioned in 2012, however has been facing challenges since then, failing to reach nameplate capacity due to technical challenges.

Currently remedial works are ongoing and the plant is expected to be fully operational in 2026, positioning Botswana on the path of electricity net exportation.

Source: Weekend Post Botswana