Morupule B Power Station

Morupule B power station is a proposal to expand the Botswana Power Corporation's (BPC) sole existing power station, the Morupule Power Station. The impetus for the project is the country's current reliance on importing approximately 80% of its power from the South African utility, Eskom. In response to electricity shortages in South Africa, Eskom decided that it would reduce its power exports to Botswana and that they would cease entirely in 2012.

Background
In 2006 the BPC were considering an expansion of the Morupule Power Station. One option was a 400 megawatt expansion with another option being a 1,200 megawatt expansion. The bigger expansion option would involve the sale of surplus electricity into South Africa and possibly other neighboring countries.

Financing
In October 2009 the World Bank’s Board of Executive Directors approved a US$136.4 million loan for the the Morupule B project and also approved a Partial Credit Guarantee of US$242.7 million of commercial bank financing for the project. In a media release the World Bank stated that "the financing will help secure a reliable electricity supply for the country’s economic growth and poverty reduction programs. Financing will also help Botswana prepare a robust low-carbon growth strategy (consistent with the current Tenth National Development Plan: 2009-2016), strengthen management skills in the power sector, and establish a new, independent electricity regulator."

The World Bank stated that the funding was for "the construction of the 600 megawatt Morupule ‘B’ coal-fired power station, accompanied by related transmission lines and a water supply system. Moreover, the project will support the country’s evolving low-carbon growth strategy, including fast-track exploration of alternatives such as coal-bed methane (CBM), concentrated solar power (CSP), and new, emerging technologies such as carbon capture and storage. In addition, the financing will provide for the establishment of an independent energy regulator, and also help to improve project implementation capacity at Botswana Power Corporation and the Botswana Ministry of Minerals, Energy, and Water Resources."

The World Bank's Vice President for the Africa Region, Obiageli Ezekwesili claimed that support for the project "will help to not only increase generation capacity and access but also serve as a down payment for a greener future."

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