Preferred bidder for construction of Mmamabula coal-fired power plant in Botswana selected

The 300 MW Mmamabula coal-fired power plant in Botswana will be constructed by Jindal Steel & Power (JNSP).

The company, based in New Delhi, India, was selected as the preferred bidder following a competitive process that involved 4 companies. However, one of the companies pulled out of the tender round at a later stage.

The company left Jindal, African Energy Resources, and Minergy as the remaining competitors. 

The mandate of JNSP as far as the project is concerned 

According to the Botswana Energy Ministry, JNSP will design, finance, construct, own, operation, and maintenance the Mmamabula coal-fired power plant. Additionally, the company shall decommission the facility at the end of its economic life. 

To recoup the costs of constructing the power plant, the company will sell electricity to the Botswana Power Corporation (BPC). This will be done in line with JNSP and the BPC’s mutually agreed-upon terms. 

The Mmamabula coalfields will see the commencement of a coal mine’s construction this year according to Jindal. In the next 20 years, Botswana which has approximately 200 billion metric tons of coal, only intends to procure the facility as its sole fossil fuel-based power plant.

Botswana to generate revenue from its coal resource to improve its economy

Botswana is trying to generate revenue from its coal resource to improve its economy. This is regardless of the criticism of coal due to its negative impacts on the environment. Thus far the country has expedited its coal exports to European countries over the past few months via Mozambique and Namibia. This is due to Russia’s invasion of Ukraine.

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The Mmamabula coal-fired power plant will contribute to this goal since, in addition to supplying the future coal power plant, it will serve the export market.