Eskom signs deal with Botswana

GABORONE – South Africa’s electricity utility Eskom signed a deal with Botswana yesterday to buy power from the planned Mmamabula station in the neighbouring southern African country.

The US$5 billion power station in eastern Botswana is due to come into operation in 2008. South Africa, Africa’s economic powerhouse, is scrambling to meet rising demand for electricity, fuelled by unexpectedly higher economic growth, and is finalising plans for massive investment to build new plants and expand existing facilities.It is also looking to other sources of energy in the region, including natural gas from Mozambique.”It is an open secret that the development of the Mmamabula power station is dependent upon entering into a secure power purchase agreement with an anchor off-taker, which is Eskom,” Botswana Power Corporation CEO John Kaluzi said.The coal-fired power station is expected to export most of its electricity to its southern Africa neighbours, he added.Nampa-ReutersSouth Africa, Africa’s economic powerhouse, is scrambling to meet rising demand for electricity, fuelled by unexpectedly higher economic growth, and is finalising plans for massive investment to build new plants and expand existing facilities.It is also looking to other sources of energy in the region, including natural gas from Mozambique.”It is an open secret that the development of the Mmamabula power station is dependent upon entering into a secure power purchase agreement with an anchor off-taker, which is Eskom,” Botswana Power Corporation CEO John Kaluzi said.The coal-fired power station is expected to export most of its electricity to its southern Africa neighbours, he added.Nampa-Reuters