UK based power development entity Independent Power Corporation PLC (IPC) has committed itself to find funding for the development of the 100 MW Botswana’s coal-gas-power station in Mmashoro village.
IPC and Australian Stock Exchange listed gas and power producing company Tlou Energy, recently signed an agreement which is expected to allow project funding from UK and European credit export agencies.
Tlou Energy Managing Director Tony Gilby told its shareholders last week that following the signing of the agreement, IPC commenced discussions with a number of its British based project development and funding partners and has received letters of interest from selected parties who want to provide funding support for the IPP project. Gilby stated that the funding support includes grant funding for the costs of feasibility studies on the grid connection, debt funding of procurement and installation of power engines, funding of the power lines to effect the required grid connection and equity and debt funding for the procurement and installation of power turbines for the power plant.
He indicated that IPC has a relationship with General Electric (GE), the UK based company which specializes in procurement and supply of GE power turbines and equipment which meets European Union (EU) CO2 emission standards. “This UK based procurement relationship has the added benefit that it will enable the IPP Project to meet EU standards which are required for project funding and support from UK and European credit export agencies,” said the Managing Director.
Gilby added that IPC funding partners, their power development experience and the expansion of Lesedi gas deposits (which are expected to supply gas to the project), significantly enhance the viability of the power plant. Tlou Energy last month announced that gas reserves at Lesedi project have increased by 44 percent to reach 3.9 billion cubic feet.
According to Tlou Energy, IPC has participated and sourced funding for over 4,500 MW of generation capacity since its formation in 1995 and through its subsidiary Independent Power Operations Limited. “IPC has considerable experience operating in Africa including the development of power projects in Angola, Ghana and South Africa.”
It has been estimated that around P1 billion is required to develop the 100 MW Mmashoro coal-gas power station and other infrastructure such gas pipe lines.