According to a notice from the energy ministry on Monday, Botswana has chosen India’s Jindal Steel & Power Ltd (JNSP.NS) as the preferred bidder in a tender to construct a 300 megawatt (MW) coal-fired power plant. The country of Southern Africa only intends to purchase this fossil fuel-based power facility during the next 20 years.
Initial shortlisting for the contract included four companies, but one withdrew, leaving Jindal, African Energy Resources, and Minergy (MIN.BT) in a three-way competition.
Botswana has over 200 billion tonnes of coal resources and despite recent pressure on coal due to climate change, the diamond-dependent country is pressing ahead with monetising its coal for economic development.
“The contract (is) for the design, finance, construction, ownership, operation, maintenance and decommissioning at the end of its economic life … of a 300MW net greenfield coal-fired power plant in Botswana as an Independent Power Producer,” the notice read.
Jindal will finance construction of the plant and recoup its investments from selling electricity to the Botswana Power Corporation (BPC) under terms to be negotiated between the two parties.
State owned Morupule Coal Mine and Minergy’s Masama are the country’s only operating coal mines.
Jindal Botswana country head Neeraj Saxena did not respond to enquiries but the company told Reuters in November 2021 that it would start building a coal mine in south-eastern Mmamabula coalfields in 2022, aiming to supply the export market and the planned coal power plant.
