Minister Tibone, sign an Intergovernmental Memorandum of Understanding,
Pretoria
18 August 2006
Minister of Minerals and Energy, Ms Buyelwa Sonjica, was today hosted by her
counterpart in Botswana, the Minister of Minerals, Energy and Water Resources
Mr Charles Tibone for the signing of an Intergovernmental Memorandum of
Understanding (MoU) between the two governments.
The meeting held today flows from one that was held in October 2004 between
the Ministers of Minerals and Energy of both countries, the Minister of Finance
of Botswana, as well as representatives of the energy utilities of both
countries, namely Eskom and the Botswana Power Corporation (BPC).
The purpose of the previous meeting and todayâs signing, was to create an
enabling environment to look into the possible development of a Mmamabula Coal
Fired Power Station in Botswana. The MoU signed today will be supported by an
Inter-Utility MoU (IU MoU), between BPC and Eskom.
The agreement gives direction for the utilities to investigate the
possibility of such a power station being built. This would entail all the
pre-feasibility and feasibility studies, as well as building a business case
for such a station, to provide guidelines in terms of project investment,
construction and operations, to set out key rights and responsibilities for
each party as well as principles agreed to by each party. Furthermore, the MoU
is to provide an enabling agreement from which all subsequent agreements will
flow.
It is envisaged that such a power station will be able to discharge 3 600
megawatts (MW) of power once in full operation. It will also be integrated into
both countriesâ power grid, particularly as Eskom is seen as the major power
off-taker once completed.
Minister Tibone of Botswana said that he was encouraged by the quick
response to Botswanaâs request on this matter, and that this was a sign of the
strength of the co-operation between the two governments.
âBotswana is not immune to the erosion of energy supply as other countries
are experiencing. Botswana can only generate 30 percent of the power it
consumes and therefore it is critical for co-operation, not just between our
two countries, but for the region and ultimately, for the continent. In all the
work that is to be done, we must also not ignore and forget achievements in
energy past and present in order to inform the futureâ, said Minister
Tibone.
In her response, Minister Sonjica pointed out that this was an occasion to
celebrate and appreciate the efforts of her predecessors who started the
process. She reflected that this was definitely a milestone in the growth of
the relationship between the two countries.
It will be critical for the Chief Executive Officers (CEOs) of our
respective utilities to ensure a speedy signing of the inter-utility MoU so
that this process does not stall. A technical committee has to be set up
quickly that will drive the process. I am also happy at the prospect of the 3
600 jobs that can be created in the process because this will have a definite
impact on the alleviation of poverty.
âIt is important for us to understand that this work will be done with the
idea of universal access being paramount. It will also be a critical catalyst
towards the realisation of the Millennium Development Goals. South Africa fully
supports this projectâ said Minister Sonjica.
The MoU was signed at the Gaborone International Convention Centre,
Botswana.
For further information, please contact:
Sputnik Ratau
Media Liaison Officer
Ministry: Minerals and Energy
Tel: (012) 317 8291
Cell: 082 885 8317 / 082 440 6996
E-mail: Sputnik.ratau@dme.gov.za
Issued by: Department of Minerals and Energy
18 August 2006
