Govt taps into P1.5bn World Bank loan
Brian Benza | Wednesday June 1, 2016 18:00
The financial package is part of a $270 million developmental lending pipeline availed by the World Bank last year under a 2016-2020 Country Partnership Framework (CPF), to finance developmental operations in the first two years of the programme, up to 2018.
Permanent Secretary in the Ministry of Minerals, Energy and Water Resources, Kgomotso Abi told the Public Accounts Committee (PAC) recently that negotiations to tap into the $150 million facility are currently ongoing.
“We have submitted several projects that they are looking at. We hope to conclude the negotiations soon,” he said.
While more than 95 percent of the population has access to improved drinking water sources, the World Bank says means to piped water supply is uneven, ranging from 80 percent in the capital of Gaborone to 20–30 per cent in some other urban centres, and only 42 percent of rural households have access to proper sanitation.
In addition, the World Bank says some 33 percent of all water supplies in Botswana are lost through the Water Utilities Corporation (WUC) distribution system.
“None of Botswana’s growth opportunities will be achieved over the long-term if sustainable sources of water are not available, if new technologies are not adopted and if pricing policies are not reformed to ensure efficient use of water,” states the World Bank.
Turning onto power supply issues, Abi said government has taken a decision that Botswana Power Corporation (BPC) would no longer build its own power stations, but will to rely on Independent Power Producers (IPP).
Government is currently weighing an option to sell its troubled 600 MW Morupule B Power Plant to its Chinese developers.
According to Abi, they are trying to repair the power plant before a decision can be taken.
“The plan is to fix it first and then see if we can sell it back to the Chinese. Going forward we have also taken a decision not to build power stations ourselves, but to go the independent power producers route,” he said.
Built by China National Electric Engineering Company (CNEEC) at a cost of P11 billion, the power station was commissioned in 2012, but has constantly broken down due to boiler failures and tube leaks, leading to Botswana to rely on diesel generators and imports from neighbouring South Africa.
From an installed capacity of 600MW, the Morupule B Power Plant is current producing only 130 MW as at May 23, 2016.
Works are currently ongoing to expand Morupule B by an extra 300MW through an IPP after an $800 million tender was awarded to a joint venture between Japan’s Marubeni Corporation and South Korea’s Posco Energy.