South Korea’s leading energy producer POSCO Energy Co. will build and operate two coal-fired thermal power plants in Botwsana, securing a foothold for advancement into Southern Africa.
POSCO Energy on Wednesday said it inked a contract with state-owned utility firm Botswana Power Corp. on constructing and operating the fifth and sixth power plants of 300-megawatt Morupule B Phase II in Botswana at the African country’s capital city Gaborone on Tuesday (local time).
Under the terms of contract, the company will construct 300-megawatt coal-fired thermal power plants near Morupule coal mine, located about 280 kilometers northeast from Gaborone, and sell entire electricity generated from the power plants to Botswana Power.
The Korean energy producer in November last year was selected as a preferred bidder in the international procurement auction on power plant construction and operation project launched by the Ministry of Minerals, Energy and Water Resources of Botswana.
The company won the order by forming a 50:50 consortium with Japanese general trading company Marubeni Corp., and the two firms will jointly operate and maintain the power plants over the next 30 years.
POSCO Energy plans to begin the construction of the power plants in the second half of 2016 and start operation in May 2020.