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BOTSWANA IPP PROJECT i Energy & Natural Resource Corporation
CONFIDENTIAL
Energy & Natural Resource Corporation
(Botswana)
PROJECT INFORMATION MEMORANDUM
FOR A 600MW
INDEPENDENT POWER PLANT
AT MORUPULE
(PALAPYE)
BOTSWANA
OCTOBER 2019
BOTSWANA IPP PROJECT ii Energy & Natural Resource Corporation
CONTACT DETAILS
If you have any questions regarding the information, or any questions relating to the contents of this
document, please contact the project sponsors and they will refer you to the relevant party:
Sponsor / Developer: Energy & Natural Resource Corporation (Botswana) (Pty) Ltd
Lionel Koster
Executive Director
Email: lionel@enrcenenergy.co.bw
Tel: +27 83 265 7755
Development Advisors: Atlantic Energy Partners
Anthony de Graaf
Executive Director
Email: anthony@enrcenergy.co.bw
Tel: +27 21 418 2596
Craig Stanley
Executive Director
Email: craig@atlanticep.com
Tel: +27 21 418 2596
BOTSWANA IPP PROJECT iii Energy & Natural Resource Corporation
Financial Advisors: Waterborne Capital
Brett Gavin Levick
Managing Director
Email: brett@wbcapital.co.za
Tel: 021 657 3811
Legal Advisors: Norton Rose Fulbright
Jackie Midlane
Director
Email:
jackie.midlane@nortonrosefulbright.com
Tel +27 11 685 8678
Fax +27 11 301 3305
Transmission Network Advisors: Power Network Optimization
Machiel Coetzee
Director
Email: coetzeem@iafrica.com
Tel +27 11 394 4220
Fax +27 86 637 4234
Technical Advisors: UNIPER
Mr Harald Schaaf
CEO
Email: harald.schaaf@uniper.energy
Tel +27 21 200 5980
www.uniper.energy
BOTSWANA IPP PROJECT iv Energy & Natural Resource Corporation
TABLE OF CONTENTS
Page
1. Definitions and Glossary ...................................................................................................... 1
2. Executive Summary ............................................................................................................. 3
2.1. Projects Overview ................................................................................................................ 3
2.2. Construction ........................................................................................................................ 6
2.3. Status of Consents and Approvals ....................................................................................... 6
2.4. Financing .............................................................................................................................. 8
2.5. Proposed Project Timeline ................................................................................................... 8
2.6. Financing Opportunity ......................................................................................................... 9
2.7. Main Fuel: Coal .................................................................................................................... 9
2.7.1 Coal Source ......................................................................................................................... 9
2.7.2 Quality ................................................................................................................................ 9
2.7.3 Coal handling and storage ................................................................................................. 11
2.8. Lime Handling .................................................................................................................... 11
2.9. Ash ..................................................................................................................................... 11
2.10. Start-up Fuel ...................................................................................................................... 12
2.11. Water use ........................................................................................................................... 12
2.12. Insurance ........................................................................................................................... 13
3. Key Project Parties ............................................................................................................ 14
3.1. Sponsors:............................................................................................................................ 14
3.1.1 Energy & Natural Resource Corporation (Botswana) (Pty) Ltd ......................................... 14
3.1.1.1 Introduction ............................................................................................................. 14
3.1.1.2 ENRC capabilities and team ...................................................................................... 14
3.1.2 Atlantic Energy Partners .................................................................................................... 14
3.1.2.1 Introduction ............................................................................................................. 14
3.1.2.2 AEP capabilities and team ......................................................................................... 14
3.2 Strategic Equity Partner ..................................................................................................... 15
3.3 Coal Supplier ...................................................................................................................... 15
3.4 EPC and O&M Contractor .................................................................................................. 15
3.5 Sponsor’s Advisors ............................................................................................................. 16
4 Project Description ............................................................................................................ 18
4.1 Site and Project Assessment .............................................................................................. 18
4.2 Site Infrastructure .............................................................................................................. 21
4.3 Road design, Landscaping .................................................................................................. 22
4.4 Site infrastructure .............................................................................................................. 23
4.5 Planning Approvals and Processes .................................................................................... 24
4.6 Environmental Impact Assessment ................................................................................... 24
4.7 Grid Application ................................................................................................................. 26
4.8 Heritage ............................................................................................................................. 31
4.9 Proposed Project Timeline ................................................................................................. 31
5 Project Structure ............................................................................................................... 31
5.1 Project Ownership ............................................................................................................. 32
5.2 Project Contractual Agreements ....................................................................................... 32
6 Project Economics ............................................................................................................. 36
6.1 Overview ............................................................................................................................ 36
6.2 Sources and Uses of Funds ................................................................................................ 36
6.3 Key Assumptions ................................................................................................................ 37
7 Accounting and Tax ........................................................................................................... 42
7.1 Results: Base Case .............................................................................................................. 42
8 Financing Opportunity ....................................................................................................... 43
BOTSWANA IPP PROJECT v Energy & Natural Resource Corporation
8.1 Quality of the Sponsor ....................................................................................................... 43
8.2 Project Development Skills ................................................................................................ 43
8.3 Commercial Risk Structure of the Projects ........................................................................ 43
LIST OF TABLES
Table 1 Plant Summary ..................................................................................................................... 6
Table 2 Consents required ................................................................................................................ 7
Table 3 Consents required for bidding ............................................................................................. 7
Table 4 Applications required........................................................................................................... 8
Table 5 Project timeline ................................................................................................................... 9
Table 6 Coal quality range planned for new power plant given by ENRC. (Analyse Certificate /
Test Report from 28/06/2013). ............................................................................................................. 10
Table 7 Flue gas emission limits according to World Bank standards Dec. 2008 and assumption
for this study. ......................................................................................................................................... 11
Table 8 Site assessment result summary ....................................................................................... 18
Table 9 Assumption of general connections to existing, local public systems and infrastructure 23
Table 10 Consents required .............................................................................................................. 24
Table 11 Project timeline .................................................................................................................. 31
Table 12 ................................................................................................................................................. 31
Table 13 EPC contract summary ....................................................................................................... 33
Table 14 Type of debt facilities ......................................................................................................... 36
Table 15 Sources and uses ................................................................................................................ 37
Table 16 Construction Period ........................................................................................................... 37
Table 17 Staff salaries ....................................................................................................................... 38
Table 18 Financing assumptions ....................................................................................................... 39
Table 19 Key dates ............................................................................................................................ 41
Table 20 Accounting and tax assumptions ....................................................................................... 42
Table 21 Cover ratios ........................................................................................................................ 42
LIST OF FIGURES
Figure 1: Project Structure ...................................................................................................................... 4
Figure 2: Map of ENRC IPP site .............................................................................................................. 19
Figure 3: Map and layout of the Morupule Coal Mine .......................................................................... 19
Figure 4: 600 MW System Healthy ........................................................................................................ 28
Figure 5: 600 MW with MorupuleB-Phokoje out of service.................................................................. 28
Figure 6: 600 MW with Phokoje-Medupi out of service ....................................................................... 29
Figure 7: 600 MW with MorupuleB-Isang out of service ...................................................................... 29
Figure 8: 600 MW with Isang-Watershed out of service ....................................................................... 30
Figure 9: 600 MW with Morupule transformer out of service .............................................................. 30
Figure 10: Project Ownership Structure ................................................................................................ 32
Figure 11: Project Contracts .................................................................................................................. 32
BOTSWANA IPP PROJECT 1 Energy & Natural Resource Corporation
1. Definitions and Glossary
Unless otherwise provided herein, the definitions set out below apply throughout this Project
Information Memorandum.
AEP Atlantic Renewable Energy Partners (Pty) Ltd or any of its affiliates and/or
nominees
BBBEE Broad Based Black Economic Empowerment
BEE Black Economic Empowerment
ENRC Energy & Natural Resource Corporation (Botswana) (Pty) Ltd or any of its
affiliates and/or nominees
COD Commercial Operation Date
DEA Department of Environmental Affairs
Developers ENRC & AEP
DOE Department of Energy
DSCR Debt Service Cover Ratio
DWT Dividend Withholding Tax
EIA Environmental Impact Assessment
EPC Engineering, Procurement and Construction
IPP Independent Power Producer
JSE Johannesburg Stock Exchange
LLCR Loan Life Cover Ratio
MLA Mandated Lead Arranger
MOU Memorandum of Understanding
MW Megawatt: 1,000kW
MWh Megawatt-hours
O&M Operations and Maintenance
PIM This Project Information Memorandum
PPA Power Purchase Agreement
BOTSWANA IPP PROJECT 2 Energy & Natural Resource Corporation
Projects The development, financing, construction and operation of a 600MWe
gross (2x 300MW gross units) mine-mouth Coal Fired Power plants,
located in Morupule which is part of the Federal Republic of Botswana.
RFP Request for Proposals
ROD Record of Decision
Sponsor The developers and the prospective equity partners
SPV Special Purpose Vehicle
VAT Value Added Tax
BOTSWANA IPP PROJECT 3 Energy & Natural Resource Corporation
2. Executive Summary
Energy & Natural Resource Corporation (Botswana) (Pty) Ltd (“ENRC”) (“Sponsor”) and Atlantic Energy
Partners (“AEP”) (Development Advisors), acting as project sponsors (the “Sponsors”), have identified
an opportunity to develop 4 x 150MW mine-mouth coal fired power plants near the Morupule coal
mine north of Gaborone in Botswana, (individually a “Project” and collectively the “Projects”).
ENRC is a Republic of Botswana based Energy Company which is focused on the introduction, design,
construction and operation of independent power plants within the Republic of Botswana.
The ENRC management team have been involved in the international energy and resource sector for
decades and have focused on Botswana as having the potential to become the foremost energy
exporter in Africa due to the unique and fundamental characteristics of the country, its strategic
position and the abundance of an untapped natural fuel source (coal).
AEP was incorporated with the vision of providing the renewable energy sector with a full turnkey
service provider of excellence and have been relatively successful in these endeavours within the South
African REIPPP programme AEP is now employing it’s successful development strategy in the rest of
Africa and across the wider energy sector including thermal coal.
The Sponsors are in the process of securing non-recourse project financing for the Projects and this
Project Information Memorandum (“PIM”) is intended to serve as an initial guide on general
information about the proposed project.
2.1. Projects Overview
ENRC was established on 20th November 2013 with a clear mandate to investigate and perfect a model
for an independent power station in the Republic of Botswana to supply power to South Africa and
other SAPP countries. On the 24th July 2014 , ENRC registered the “Projects” with the South African
Department of Energy – Coal IPP Programme (Cross Border).
(Annexures 1.1 and 1.2)
ENRC immediately entered into and NDA with the Botswana Power Corporation (“BPC”) and a
Confidentiality Agreement with Southern African Power Pool (“SAPP”) in order to study the existing
power grids and investigate solutions to wheel electricity south to South Africa and North to the SAPP.
(Annexures 2 and 3)
ENRC also immediately engaged the Department of Energy in South Africa and the then Ministry of
Minerals , Energy and Water Resources in Botswana. Presentation was made in both South Africa and
Botswana to the Department and Ministry officials and respective Government Ministers.
(Annexures 4.1 , 4.2 and 5)
In response to the need for additional electricity supply to the national grid, and the goal of the
Government of South Africa to procure electricity from Independent Power Producers (IPPs), as
detailed in the IRP 2010 and in response to the Section 34(1) “Determination” issued by the Minister
of Energy on 20 April 2016 for 3750 megawatts of coal cross border energy.
(Annexure 6)
BOTSWANA IPP PROJECT 4 Energy & Natural Resource Corporation
ENRC is presently in negotiations to enter into a cross border agreement with the South African
Department of Energy (DoE) to supply 600MW (Phased) of energy to South Africa.
In terms of the Government Gazette – Integrated Resource Plan 2019 issued on 18th October 2019 ,
the South African government has provided for 1,000 MW of additional coal generation capacity for
2023 and 2024 which can be sourced locally or in terms of Cross-border IPP’s.
(Annexure 34)
The Project Company has been set up to develop the Projects. It is anticipated that the shareholders
of these Projects will include ENRC, a potential Strategic equity partner and Atlantic Energy Partners.
The final shareholding and debt funding structures are still under discussion.
An example in the possible split of ownership in the Project companies and debt funding are depicted
in the following diagram:
Figure 1: Project Structure
BOTSWANA IPP PROJECT 5 Energy & Natural Resource Corporation
O&M Contractor
The O&M contractor will most likely initially be the selected EPC contractor, overseen by the owner’s
technical engineer (UNIPER). STEAG completed the pre-feasibility study. Currently Uniper is being
engaged to complete the feasibility study.
EPC Contractor:
The EPC contractor is still to be confirmed. The Sponsor will run an extensive and thorough process to
participate in coal fired power plant projects from which the EPC contractor will be selected.
Primary Fuel Supply:
The project has entered into a Memorandum of Understanding (“MoU”) with Morupule Coal Mine as
the primary fuel supplier and the MoU has been extended to allow finalization in terms of the PPA
agreement to be signed with the Dept. Energy of South Africa.
(Annexure 11)
The key features of the power station are as follows:
Unit gross electrical output: 600 MW (divided into two (2) phases)
Number of boiler(s): Four (4) 150MW
Number of Steam Turbine: Generator(s) Two (2) 300MW STG
Number of Blocks: 2 blocks each consisting: 2 x 1500MW boilers + 1
x 300MW STG per unit
Long-term unit capability loss factor (UCLF =
1 - Availability):
The long-term average loss of station net
electrical output to the grid (per unit including
portion of the total station parasitic load
attributed to the unit), will be no more than 10 %
of unit ECR (see below)
Unit economic continuous rating (ECR):
The unit will sustain the design station net
electrical output, under design main steam
pressure and temperature conditions and feed
water temperature conditions and with governor
valve wide-open.
Unit ECR shall correspond to unit nominal
(design) MCR.
Boiler maximum continuous rating (BMCR): 100% BMCR shall be no less than 105% TMCR.
Turbine maximum continuous rating (TMCR):
100%TMCR shall correspond to unit 100% ECR,
and shall correspond to governor valve wide open
operation under design feed water temperature
conditions.
Unit minimum continuous load with and
without light fuel oil support
The unit shall be capable of a continuous load of
40% MCR, sustained indefinitely without support
firing.
BOTSWANA IPP PROJECT 6 Energy & Natural Resource Corporation
Load Profile: The plant will be operated in accordance with a
base load operating regime.
Frequency of Electricity Generation: 50 Hz
Main Fuel: Thermal Coal (Bituminous Coal)
Start-up fuel: Diesel Fuel oil Condenser cooling: Air Cooled Condenser
Operating life of Plant: 30 years Table 1 Plant Summary
2.2. Construction
The first unit is envisaged to have a construction timeline of 42 months. Construction of the second
unit will be started 3 months after unit 1 and will have a timeline of 42 months. The total timeline for
both unit 1 and 2 will be 45 months. The project is assumed to have an operating period of 30 years.
The total project cost is expected to be ZAR25bn. Based on a gearing of 75:25 the project requires
ZAR19bn debt and ZAR6bn equity.
2.3. Status of Consents and Approvals
The status of consents and approvals required for bidding is as follows:
Consents Required for bidding:
• Environmental Authorisation
In Progress
Ecosurv Environmental Consultants where appointed on
01 July 2016 to proceed with the ESIA
and the Department of Environmental Affairs (Botswana)
has approved the Scoping Report.
(Annexure 27)
• Inter Government Cross Border
Agreements
Approved
(Annexure 7 and 12)
• Heritage approvals
Approved
Land Board of Botswana
(Annexure 30)
• Waste Management License In Progress
• Civil Aviation Authority (CAA)* To be obtained
• Atmospheric emission license
To be obtained
Study currently being done by Airshed in conjunction
with various Botswana Government Departments
• Transmission Integration Study Approved by BPC
(Annexure 24)
• Water Allocation In Progress
BOTSWANA IPP PROJECT 7 Energy & Natural Resource Corporation
Application for allocation from NSWC 2
MoU with Water Affairs in terms of Palapye WWTP
(Annexure 31.1 , 31.2 and 32)
• Mineral rights
Approved
MCM has a full Mining License
(Annexures 21 and 22)
• Land Acquisition
Approved
Palapye Land Board
(Annexures 16 – 20)
• BOSA Interconnector In Progress
(Annexure 33)
• Zoning In Progress
Application in process with Land Board of Botswana
• Government Support and
Communication
Communication on Project between Ministers
(Annexures 4 , 8 , 10 and 23)
Table 2 Consents required
The Project is at an early stage of development and, where applicable, applications for the necessary
permits are either underway or already approved. Certain authorizations required for the Project roll-
out such as: the MMEWR generation license from the Ministry of Minerals, Energy and Water
Resources (Botswana) has been applied for, but will only be secured during the licensing process.
(Annexure 9)
A summary of the permits and authorizations required at the bid submission date is listed below:
Consents Required for bidding:
Environmental Authorisation
In Progress
Ecosurv Environmental Consultants where ap-
pointed on 01 July 2016 to proceed with the ESIA
and the Department of Environmental Affairs
(Botswana)has approved the Scoping Report
Written allocation of water allocation
and fully integrated water use licence
application
In Progress
Application for allocation from NSWC 2
MoU with Water Affairs in terms of Palapye WWTP
Waste Management License To be obtained
Inter Government Cross Border Agree-
ments
Approved
Table 3 Consents required for bidding
Applications Required for bidding:
BOTSWANA IPP PROJECT 8 Energy & Natural Resource Corporation
Mineral Rights Application Approved
MCM has a full Mining License
Rezoning Application Application in process with Land Board of
Botswana
Atmospheric emission license applica-
tion
To be submitted
Water Use License In Progress
Application for allocation from NSWC 2
MoU with Water Affairs in terms of Palapye WWTP
Heritage approvals Approved
CAA Application To be submitted
Table 4 Applications required
2.4. Financing
The Sponsor will engage a limited number of potential lenders to secure the most competitive terms
for:
• Senior, non-recourse project finance facility;
• Subordinated facilities;
• Senior inflation-linked debt facility;
• A VAT facility;
• Value-adding BEE financing;
• A bid bond issue; and
• Such commitments from the lenders as may be required.
The Sponsor will seek to engage with Potential Investors to secure:
• The most competitive tariff
• Bid Compliancy; and
• Such commitments from potential Investors that may be required.
The composition of the equity investors will be decided upon by
• the Sponsor based on the level of interest and
• Key financial criteria.
2.5. Proposed Project Timeline
It is anticipated that the Projects will follow the estimated timeline below:
BOTSWANA IPP PROJECT 9 Energy & Natural Resource Corporation
Milestone Project
Project development phase 12 months
Project implementation phase 30 – 36 months
COD FC + 45 months
Table 5 Project timeline
2.6. Financing Opportunity
The Projects present a unique opportunity for Investors given:
• The involvement of experienced project Sponsors (ENRC and AEP);
• The high likelihood that this project will be awarded a PPA due to the energy
shortage in SA;
• The successful development track record the project sponsor (AEP)
• The proximity of the proposed site to the mine and the abundance of the coal
resource in the area; and
• The Sponsor has more projects in the pipeline that they will be bringing to market.
2.7. Main Fuel: Coal
2.7.1 Coal Source
The main fuel for the planned thermal power plant in Botswana will be local mine-mouth bituminous
coal of the Morupule mine. The specifications of the main fuel are on the basis of the data, reported
by Advanced Coal Technology Laboratory with Ref.-No. 1314-744 dated from 28/06/2013.
2.7.2 Quality
It is necessary to consider the marked values of the coal in Table 5 as a worst case scenario for the
calculation of the coal stockyard, ash storage and lime storage. Different analysis results are showing
a wide range in heat capacity, in the content of ash and particularly on sulphur with 3.18 ad-% as worst
case. It is required to perform additional analysis in order to evaluate coal analysis structured according
to future exploration steps. Based on performed combustion calculation to the maximum SO2
concentration with 850 mg / m³ (table 6) and without Desulphurisation plant, the sulphur content in
the coal is to be limited to approximately 0.3 ad-%.
BOTSWANA IPP PROJECT 10 Energy & Natural Resource Corporation
Table 6 Coal quality range planned for new power plant given by ENRC. (Analyse Certificate / Test
Report from 28/06/2013).
For the potential power plant site a good air quality is assumed. Based on this assumption, flue gas
emission limits have been adopted; see column “assumption for this Study” in Table 5. For the design
of power plant units, the following emission limits are to be taken into consideration.
BOTSWANA IPP PROJECT 11 Energy & Natural Resource Corporation
Table 7 Flue gas emission limits according to World Bank standards Dec. 2008 and assumption for this
study.
2.7.3 Coal handling and storage
The coal will be conveyed by a belt conveyor system from the Morupule coal mine to the coal
handling plant of the power plant. The total capacity of the active coal storage (also called coal life
storage) is 30 days and of the passive coal storage (also called coal strategic storage) 45 days at full
load operation. It has to be considered that this is only a theoretical figure and that the storages for
what bulk material ever will be never filled completely. So the disposable amount of coal on the
stock yard will be less than the design capacity.
The active coal storage consists of two sheltered stock yards with roof and walls. Each is equipped
with a stacker for piling and a scraper for reclaiming the coal in the stock yard. The common capacity
of the two piles is 30 days at full load operation.
The passive (strategic) coal storage consists of an open stockyard with one pile. Piling and reclaiming
happens with wheel mounted front end loaders. The common capacity of the pile is 45 days at full load
operation. The coal in a passive stock yard will be compacted compared to an active stock yard. This
protects the pile against abrasion by wind and rainfall as well against self-ignition in case of longer
stock length.
2.8. Lime Handling
Lime will be pneumatically injected to the e.g. humidifier slake device from separate silo that will be
located near the bag filter system. Lime will be delivered by silo truck as fine grinded material. Lime
silos will be designed for 5 days capacity according Table 3.5. A level measurement will be installed for
each silo. The silos will be equipped with all necessary devices avoiding over or under pressure during
filling or emptying operations. Discharge air will be filtered before been exhausted to the atmosphere.
2.9. Ash
Ash will be collected from the boiler furnace and from the bag filter. The fly ash from the bag filter can
be stored in one silo separately to the ash from the boiler furnace, in case the utilisation of ash, e.g. in
BOTSWANA IPP PROJECT 12 Energy & Natural Resource Corporation
the cement or building industry, offers a potential for selling. The fly ash can be transported
pneumatically to the silo. The silo will have a capacity of 10 days at full load operation.
Ash can be humidified, if necessary, prior to the transport to the ash dump. Alkaline components in
the ash react with water and other components to form a rock product. This product can be
transported and stored either in a dedicated ash dump or in the coal mine.
The entire ash will be deposited in a landfill. The landfill is expected to be close to the power plant and
will be designed with a capacity of approx. 30 years power plant operation. Ash will be transported by
truck (depending on the ash mass flow alternatively by the same belt conveyor system). The fly ash
from the buffer silos will pass a humidifier before being discharged to the truck (alternatively by the
same conveyor belt system).
The waste water from the water treatment plant will be used for humidification. Water, ash and waste
products from desulphurisation form a stable and rugged product that does not require any dust
suppression for the storage areas.
2.10. Start-up Fuel
It is assumed that the auxiliary fuel for the thermal power plants shall be Diesel Fuel Oil. The existing
Morupule power plant (A+B) uses Diesel Fuel Oil as well. Furthermore infrastructure for Heavy Fuel Oil
as alternative is poor in Botswana.
The auxiliary fuel is expected to comply with the requirements of "ASTM D975 - 12 Standard
specifications for Diesel Fuel Oils" (Diesel Fuel Oil).
Fuel oil tanks will be provided supplying the main steam generator units and the auxiliary steam
generator with Diesel Fuel Oil. The fuel oil have a higher calorific value than the coal thus enabling the
plant to achieve its optimal performance parameters quicker than if the boiler was started with only
coal.
The tanks are designed for above-ground storage of Diesel Fuel Oil as flat-bottom tanks with roof and
all necessary auxiliary equipment. The tanks are constructed within a concrete emergency collection
basin in order to avoid any spillages and contaminations of the surrounding area.
Offloading and forwarding of the oil will be done via pumps and pipes designed and constructed in
accordance with applicable international standards. The 2 x 50% tanks have a 6 months normal
operation storage capacity. The fuel oil supply system is to be equipped with all safety measures such
as fire extinguishing foam system.
2.11. Water use
Three options and sources have been identified:
• Palapye WWTP
• NSWC 2
• Well Water
BOTSWANA IPP PROJECT 13 Energy & Natural Resource Corporation
River water near the power plant is not available, but the above options can be used as raw water for
the water treatment facilities.
Pre-treatment for reduction of suspended solids being occurred in the well water shall be provided by
using of multi-layer filter. In the multi-layer filter the filterable constituents are precipitated. Due to
the low DOC-value in the well water an additional treatment process for reduction of biological
impurities is not necessary. The treated water is led into the clear water storage tank. The backwash
water is discharged to the sedimentation tank. The thickened sludge shall arise at the bottom of the
tank and can be used for agriculture. The occurred filtrate (overflow) shall be fed back to the inlet of
the multi-layer filter.
The water after treatment will be used as:
• Service water;
• Potable water;
• Firefighting water;
• Make-up water for semi dry desulphurisation;
• Demineralised water.
2.12. Insurance
The insurance structures that are proposed will be in line with the Lenders' insurance advisor's
expectations, fully addressing the risk features arising from the location and the type of Project and
are in line with established standards for insurance programs on projects of comparable scope and
scale.
The Project Company will obtain and maintain in effect the required insurance. The insurances will
have insurance and reinsurance endorsements and appropriate security structures in line with normal
project finance standards.
All insurances placed by the Project Company shall be in accordance with the applicable legal
requirements and the project and finance agreements.
BOTSWANA IPP PROJECT 14 Energy & Natural Resource Corporation
3. Key Project Parties
3.1. Sponsors:
3.1.1 Energy & Natural Resource Corporation (Botswana)
(Pty) Ltd (up to 15%) – Shareholder and Co- Developer
3.1.1.1 Introduction to ENRC
ENRC (Energy & Natural Resource Corporation) is a Republic of Botswana based Energy Company
which is focused on the introduction, design, construction and operation of independent power plants
within the Republic of Botswana.
ENRC was established in 2013, during the preliminary phases of the Botswana government’s initiative
to initiate a tender process for a Brown and Greenfield IPP’s with the initial planning to supply Zambia
(copper belt) but due to transmission difficulties the focus was changed to supply South Africa with
strategic base load energy.
3.1.1.2 ENRC capabilities and team
The ENRC management team have been involved in the international energy and resource sector for
decades and have focused on Botswana as having the potential to become the foremost energy
exporter in Africa due to the unique and fundamental characteristics of the country, its strategic
position and the abundance of an untapped natural fuel source (coal).
3.1.1.3 ENRC worldwide activity
The ENRC would like to become the leading power generation IPP in Africa and has identified Botswana
as the premier destination for power investment in Southern Africa.
3.1.2 Atlantic Energy Partners (up to 5%) - Shareholder and Co-
Developer
ENRC has entered into a memorandum of understanding with AEP for the development of energy
facilities in Botswana.
3.1.2.1 Introduction to AEP
AEP was incorporated with the vision of providing the energy sector with a full turnkey service provider
of excellence.
3.1.2.2 AEP capabilities and team
The AEP team includes technical engineering expertise in energy development, procurement, and
project management. The team has strong financial skills including: project feasibility assessments;
due diligence; legal framework implementations; corporate structuring and tax optimisation; capital
raising and structuring for optimal returns on equity investments.
BOTSWANA IPP PROJECT 15 Energy & Natural Resource Corporation
AEP has a cumulative track record of successfully developing projects from initiation to financial
closure of four separate projects totalling 225 MW of solar PV and 138 MW of onshore wind for the
Renewable Energy IPP Procurement Programme in South Africa (“REIPPPP”). Three separate solar
projects totalling 225MW have been awarded preferred bidder status from the 4th bidding round,
which took place in August 2014. This amounts to a total of 588MW of awarded projects in the SA
REIPPP Programme.
In January 2016 we were awarded a 50MW Solar PV by the Republic of Mali located in Sikasso, Mali.
In October 2016 AEP received a LOI to develop 50MW of solar PV in Pakistan. AEP hope to reach
financial close of a 100MW solar PV project in Nigeria in 2018. AEP has a pipeline of renewable energy
projects in excess of 2GW in SA and Africa.
The AEP management team has cumulatively developed and sold more than 15 wind and solar projects
in South Africa up to full permitting of 890 MW and will be bidding another 5 solar projects in the
Expedited bidding round totalling 375MW and their pipeline of renewable energy assets will exceed
1GW of capacity over the next three years.
3.2 Strategic Equity Partner (80 to 100%)
A partner with the relevant technical and financial expertise to bring the project to Financial Close, and
provide the relevant development funding.
3.3 Coal Supplier
The main fuel for the planned thermal power plant in Botswana will be local mine-mouth bituminous
coal of the Morupule mine.
The Morupule Coal Mine has been in production since 1973. The total inferred inventory coal within
the Morupule mining lease area is approximately 12 billion tonnes as at November 2014; at the current
mining rates the mine has over 1000 years of reserves available.
3.4 EPC and O&M Contractor
3.4.1 O&M Contractor
The O&M contractor may be the EPC, overseen by the Owner Engineer, or we may elect UNIPER to
directly be the O&M contractor.
UNIPER is an international energy company with 13,000 employees. UNIPER combine a balanced
portfolio of technologically advanced large-scale assets with outstanding technical and commercial
BOTSWANA IPP PROJECT 16 Energy & Natural Resource Corporation
expertise. With 38GW of installed generation capacity (11.4GW of this being Coal power plants),
UNIPER are among the largest global power generators.
3.4.2 EPC Contractor
*Still to be selected
3.5 Sponsor’s Advisors
3.5.1 Financial Advisors: Waterborne Capital
WaterBorne Capital is an independent financial boutique established to focus on the numerous op-
portunities currently emanating within the Infrastructure, Resources and Energy Sectors across Af-
rica.
WaterBorne Capital distinguishes itself by being able to unlock client value through innovative, inde-
pendent Financial Advice and Capital Raising assistance. Seamless execution is ensured through a co-
hesive and complementary skill set provided by a highly experienced team of professionals with
proven track records across the Continent in the given Sectors.
SERVICES
Embedded in our culture is the establishment of mutually beneficial long-term partnerships built on
the foundations of trust, efficiency, reliability, quality, and value added solutions.
Building sustainable relationships through intellectual capital supported by a reliable platform that
delivers:
• Corporate Finance
• Capital Raising
• Project Finance Advisory and Arranging
• Facilitation of fully wrapped EPC, Operations and Maintenance contracts
• Black Economic Empowerment partner introductions
• Specific Black Economic Empowerment Capital Raising within the given sectors
3.5.2 Legal Advisors: Norton Rose Fulbright
Norton Rose Fulbright is a global legal practice. The firm provides the world’s pre-eminent corporations
and financial institutions with a full business law service and has more than 3,800 lawyers based in
over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the
Middle East and Central Asia.
BOTSWANA IPP PROJECT 17 Energy & Natural Resource Corporation
Recognized for their industry focus, Norton Rose Fulbright is strong across all the key industry sectors:
financial institutions; energy; infrastructure, mining and commodities; transport; technology and
innovation; and life sciences and healthcare.
As a dynamic, global legal practice with offices in Johannesburg, Durban and Cape Town, Norton Rose
Fulbright has one of the largest legal footprints in South Africa. They employ more than 500 people,
with 200 lawyers offering experience and knowledge across the spectrum of legal disciplines. Norton
Rose Fulbright’s clients include financial institutions, major industrial and commercial corporations,
mining houses, parastatals and government departments.
Norton Rose Fulbright’s global solar CV is unparalleled and they are recognised as having a leading
team of solar project specialists across their global network. Norton Rose Fulbright’s South African
experience, in particular with the REIPPP Programmed, coupled with its experience of advising on all
aspects of solar PV projects sets them apart from their competitors in their proposal to act as the
Sponsor’s advisors for the Projects.
Legal advisors with real solar PV project experience are rare. Norton Rose Fulbright’s solar project
experience to date means that they are able to benchmark previous solar projects they have advised
on, including solar projects in Rounds 1 and 2 of the South African REIPP Procurement Programme as
well as their general experience in the renewable energy sector.]
BOTSWANA IPP PROJECT 18 Energy & Natural Resource Corporation
4 Project Description
4.1 Site and Project Assessment
The 2 x 300MW Coal Fired Power Plant Projects are located 280km north of the town of Gaborone.
Palapye is the nearest village, situated approximately 5 km to the East of the Moropule Power Station.
The Projects site has been secured by executed approval by the Palapye Sub Land Board. The relevant
servitudes and servitude options have also been obtained.
The following is a summary of the site assessment results:
S/No Criteria Site Suitability Remarks
1 Proximity to/Location of
coal source Yes
Mine-mouth arrangement. Coal supply using
overland conveyors is the choice mode of
transport covering distances of up to 5km.
2 Proximity to/Location of
water source Yes
Water from ground water wells (deep wells) will
serve as raw water supply for the entire power
plant.
3 Proximity to/Location of
Limestone Yes
Limestone to be supplied by truck from the
local limestone quarry.
4 Land requirements Yes
There is sufficient land available to the power
plant and for the ash dump for the 30year life of
the project.
5 Site accessibility Yes
The access roads will be constructed within the
facility. Facility access roads from the nearest
asphalt road in the north to the facility and to
the coal and ash storage areas shall also be
provided.
6 Topography Yes Area is quite even which is favourable for
locating a power plant.
7 Geotechnical
Considerations Yes
No geotechnical fatal flaws identified, however,
a more detailed analysis of the properties of
both the soil and the bedrock is required. Such
additional soil investigation will be covered
under the EPC contract.
Table 8 Site assessment result summary
BOTSWANA IPP PROJECT 19 Energy & Natural Resource Corporation
The map and layout of the ENRC IPP site and Morupule Coal Mine is displayed below:
Figure 2: Map of ENRC IPP site
The map and layout of the Morupule Coal Mine is displayed below:
Figure 3: Map and layout of the Morupule Coal Mine
BOTSWANA IPP PROJECT 20 Energy & Natural Resource Corporation
BOTSWANA IPP PROJECT 21 Energy & Natural Resource Corporation
4.2 Site Infrastructure
The main infrastructure features of the Project include the following:
Switch Yard A HV switching yard including breakers, links, busbars, transformers, control,
protection and measurement equipment will be installed.
Overhead
Lines
The connection between the secondary winding of the generator
transformer and the HV-outdoor type switchyard will be performed with
overhead line connections.
The connection between the secondary winding of the unit auxiliary
transformer and the MV-switchgear will be performed with single core
cables by plug-in connections.
Coal The coal will be run-of-mine coal, or only marginally quality enhanced coal
supplied by Morupule open cast mine located near the power complex.
Coal Delivery The coal will be conveyed by a belt fugitive dust emissions from dust
generation points.
Coal Stockpile Coal storage can be obtained with coal silos or roofed life coal stockyard. The
active coal storage consists of two sheltered stock yards with roof and walls.
Each is equipped with a stacker for piling and a scraper for reclaiming the
coal in the stock yard. The common capacity of the two piles is 30 days at full
load operation.
Ash Handling The fly ash can be transported pneumatically to the silo. The silo will have a
capacity of 10 days at full load operation.
Limestone Lime will be pneumatically injected to the e.g. humidifier slake device from
separate silo that will be located near the bag filter system. Lime will be
delivered by silo truck as fine grinded material. Lime silos will be designed
for 5 days capacity.
The silos will be equipped with all necessary devices avoiding over- or under
pressure during filling or emptying operations. Discharge air will be filtered
before been exhausted to the atmosphere.
Water Raw water for the power plant will be sourced from Palapye WWTP , NSWC2
and ground water wells. Raw water will go through a pre-treatment for the
reduction of suspended solids. The treated water will be led into a clear
water storage tank. The backwash water will be discharged to the
sedimentation tank. Thickened sludge shall arise at the bottom of the tank
and can be used for agriculture.
Wastewater
Treatment
Waste water will arise from:
• Backwash water multi-layer filter;
BOTSWANA IPP PROJECT 22 Energy & Natural Resource Corporation
• Waste water regeneration mixed bed filter;
• Sewage water treatment;
• blow down;
• Sampling water;
• Used service water.
The boiler blow down (after recooler) and sampling water can be used as
source for raw water to reduce the demand of well water.
All other waste waters will be collected. A part of this water will be used for
moistening of the ash and evaporation.
Roads Access roads and internal roads within the project locality boundaries, as
well as upgrading and tarring of the existing provincial road from current
gravel transition point to the power plant, will be provided and prevent
contamination of the environment.
Total
Footprint
Estimates of the extent of the proposed development footprint (including
Project production unit/s (boilers / furnaces, turbines, generator and
associated equipment, control room), Office and maintenance area/s and
ash dump area:
• Power Plant - 50ha
• Ash Dump – 500ha (extending over a 40-year period)
• Strategic Coal Stockpile – 100ha (providing for a stockpile for 30 days)
• A Raw-Water Dam - 2ha
Extent of
Broader Site
210 hectares
4.3 Road design, Landscaping
All main roads within the facility boundaries will be double lane roads with 6.0 m wide black asphalt
topping and 1 m wide shoulder on one side of the road. Minor roads will be single lane road with 4.0m
wide black topping and 1.0 m wide shoulders on one side.
Facility access road from the nearest public asphalt road in the north to the facility and to the coal and
ash storage areas shall also be provided.
Finished top (crest) of roads will be about 15 cm above the surrounding grade level. All roads will be
designed for heavy trucks according to local standards. The heavy equipment moving loads will also be
properly considered.
All buildings will be provided by access roads. Surface drainage of roads shall be provided by giving
proper longitudinal slopes and cross falls. Within the facility boundary the roads will be edged on both
sides, e.g. by precast concrete edging blocks
BOTSWANA IPP PROJECT 23 Energy & Natural Resource Corporation
All roads inside the facility boundary will get an illumination system by streetlights, which ensure that
the workers can use the roads during night without additional lighting systems.
The soil-surface inside the facility boundary will be executed in the main areas with gravel finish. Only
small areas at the access to the plant and in the area of the administrative buildings will be executed
with top soil layer for planting.
4.4 Site infrastructure
The table below lists the interfaces to existing, local public systems and infrastructure.
Table 9 Assumption of general connections to existing, local public systems and infrastructure
BOTSWANA IPP PROJECT 24 Energy & Natural Resource Corporation
4.5 Planning Approvals and Processes
The Sponsor has secured diligently all consents needed for bid for both project based on an
experienced background of project development in South Africa.
The status of consents and approvals is as follows:
Consents Required for bidding:
1. Environmental Authorisation
In Progress
Ecosurv Environmental Consultants where appointed on
01 July 2016 to proceed with the ESIA
and the Department of Environmental Affairs (Botswana)
has approved the Scoping Report
2. Written allocation of water alloca-
tion and fully integrated water use
licence application
In Progress
Application for allocation from NSWC 2
MoU with Water Affairs in terms of Palapye
WWTP
3. Waste Management License To be obtained
4. Inter Government Cross Border
Agreements
Approved
Table 10 Consents required
Detailed information is provided in the following paragraphs for the different consents and
applications.
4.6 Environmental Impact Assessment
Ecosurv Environmental Consultants (Pty) Ltd have been appointed by the Developers as the
independent environmental assessment practitioner to undertake the required EIA process and
associated public participation for the Projects.
The projects proposed within the EIA for a footprint of 120ha comprise:
• Construction of a 2x 300MW coal fired power plant;
• Associated infrastructure including:
Auxiliary buildings,
Inverter stations,
Overhead electric lines,
Upgrade of existing internal farm roads to accommodate the construction vehicles; and
Construction of substation to connect the proposed coal fired power plant with Eskom’s grid
BOTSWANA IPP PROJECT 25 Energy & Natural Resource Corporation
BOTSWANA IPP PROJECT 26 Energy & Natural Resource Corporation
4.7 Grid Application
BPC is at present in discussion with Eskom on this interconnection to advance it as a project. The
Phokoje-Matimba/Medupi route will not be reinforced in future due to the large number of generation
already installed in the Matimba/Medupi area.
The BOSA Interconnector project has been initiated and the feasibility study has commenced with
Aurecon appointed as the project consultants.
BPC internal network reinforcements e.g. a second MorupuleB-MorupuleA transformer and third Isang
transformer, might be required to successfully evacuate the ENRC power onto the indicated routes
during contingencies. The intent is to coordinate all network requirements and findings with the BPC
future considerations, Master Plan and strategic intents.
600 MW south
It is assumed that the 400 kV transmission system between Botswana and South Africa,
BOSA, is in service by the time that ENRC is commissioned.
Some concluding remarks on the study findings are stated below.
Five options were considered and studied. All these options are technically viable.
Option 5 is the recommended option because of the following:
BOTSWANA IPP PROJECT 27 Energy & Natural Resource Corporation
• The least transfer limit constraints
• The cost to implement is approximately USD75m.
• No work at Morupule substation
• Limited construction required
The scope of work required is as indicated in the following figure:
Other recommendations include:
• All generators must be equipped with power system stabilisers
• Selecting generators with an inertia constant of 2.5 or higher
• Complying with all BPC equipment specifications
• Complying with the operational procedures for commissioning as agreed with BPC and
in line with the intended PPA.
• The 400 kV inter-connection, from Isang to Watershed (BOSA project), should be in
service and as a minimum be assumed to be a trip tern double circuit.
• Transfer limits on the Matimba-Phokoje line should always be adhered to.
• The proposed transmission integration solution needs to be evaluated from an imple-
mentation point of view. The site needs to be visited to evaluate the practical imple-
mentation of the transmission line reconfigurations.
BOTSWANA IPP PROJECT 28 Energy & Natural Resource Corporation
Increase to 600 MW generation was evaluated and the following network provides adequate
results.
Figure 4: 600 MW System Healthy
The network is operated within acceptable limits.
Figure 5: 600 MW with MorupuleB-Phokoje out of service
The network contingency is operated within acceptable limits.
0.972128.3
6.1
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3.3
2.7
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71053DWB SS
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BPC Generation : 1032.0 MW
ENRC Generation : 600.0 MW
BPC - Eskom 132kV flow : 5.0 MW
BPC - ZESA Total Inflow : 79.4 MW
BPC - Eskom 400kV flow : -12.6 MW
BPC - Watershed 400kV flow : 717.0 MW
BPC - Eskom Total flow : 709.5 MW
145MEDUPI4
5735PHOKJ4
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101.4
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8016MORUPULE400
49.7
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107.5
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1.015406.0
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1.015406.0
79.4
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1.014405.7
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243.5
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0.989395.6
128SELEMO4
1.005402.0
254.3
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1.02020.4
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1.02020.4
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1.02020.4
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1.02020.4
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8026MORUPULE B 7
1.02020.4
8027MORUPULE B 8
1.02020.4
300.0
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24.6
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0.967127.7
5145GABRN/S1
0.963127.1
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0.969128.0
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0.984216.5
113.7
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SW
20.5
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1.018223.9
41.5
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5736PHOKJ2
1.015223.4
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305.7
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16.2
3.6
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3.6
BPC Generation : 1032.0 MW
ENRC Generation : 600.0 MW
BPC - Eskom 132kV flow : 18.9 MW
BPC - ZESA Total Inflow : 72.8 MW
BPC - Eskom 400kV flow : -118.7 MW
BPC - Watershed 400kV flow : 806.0 MW
BPC - Eskom Total flow : 706.1 MW
145MEDUPI4
5735PHOKJ4
SW
101.8
1.009403.5
8016MORUPULE400
8061CB7
121.0
495.4
8062CB8
71.0
485.5
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SW
0.0
485.5
18.327.9 71.0
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1.016406.5
18014ZESA-BPC
1.016406.5
72.8
57.6
72.8
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1.014405.8
47.0
72.8
57.6 72.8
57.6
72.9
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485.5495.4
8018MMAMABULA
1.012404.6
0.962384.7
1.000400.0
119.2
44.2
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66.91.015405.8
5962ORAPA400
0.996398.5
141.7
59.2
142.5
65.6
1
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99.2
8075MAUN400
0.978391.2
57.5
51.2
57.3
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SW
95.6
72.6
138WATRS4
0.963385.1
396.1
88.9
403.0
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625MOOKODI4
1.020407.9
125PLUTO4
0.988395.2
128SELEMO4
1.004401.5
281.5
139.7
278.0
141.4
188.5
168.1
189.7
59.7
50.1
128.4
49.9
12.6
SW
0.0
280.4
173.2
279.4
151.1
10.0
97.6
SW
0.0 396.1
88.9
403.0
14.0
495.4
495.5
121.0
485.6
18.3
0.962384.7
27.9
8020MORUPULE B 1
1.02020.4
150.0
34.9R
1 -30.0
0
133.7
21.8
133.7
34.9
8021MORUPULE B 2
1.02020.4
150.0
34.9R
1
133.7
21.8
133.7
34.9
8022MORUPULE B 3
1.02020.4
150.0
34.9R
1 -30.0
01
133.7
34.9
8023MORUPULE B 4
1.02020.4
150.0
34.9R
1 -30.0
01
133.7133.7
34.9 21.8
21.8
133.7
1 -30.0
0
1
1.02020.4
134.3
21.7
1 -30.0
01
134.3
34.9
150.0
34.9R
8025MORUPULE B 6
1.02020.4
134.3
21.7
1 -30.0
01
134.3
34.9
150.0
34.9R
8024MORUPULE B 5
8026MORUPULE B 7
1.02020.4
8027MORUPULE B 8
1.02020.4
300.0
41.7
1 -30.0
01
300.0
73.8
300.0
41.7
1 -30.0
01
300.0
73.8
1
16.3 0.0
1
16.3
0.0
1
16.3
0.0
1
16.3
0.0
1
15.7 0.0
1
15.7 0.0
1300.0
73.8R
1300.0
73.8R
3190SPITS1
0.978129.1
71002AMANDE13
0.980129.4
9.6
0.9
9.6
0.1
0.969127.9
17.1
3.91.0
4.8 7.5 71210POKO1
0.979129.2
4.8
1.1
4.8
0.4
0.979129.2
4.5
1.1
4.5
0.1
0.958126.5
5148BT_SA/B1
0.960126.7
71212NORPLAN1
5143SGDTS1
0.962127.0
5145GABRN/S1
0.958126.4
5994RSA_BPCB
0.960126.7
5995RSA_BPCC
0.966127.5
71054DWAALBO1
8063PHAKALANE
71055DERDEPOORT
9.1
8.4
9.1
8.3 9.0
4.5
9.1
8.3
0.960126.7
1.0
43.9
3.911 2.4 43.8
3.911
43.8
2.4
43.9
93035WATRS_D6
0.961126.8
93400WATRS_D5
0.961126.8
160.5
10.811
160.5
2.7
160.5
10.811
160.5
2.7
5123KOP132
0.959126.6
9.1
8.7 9.1
0.966127.5
11.1
4.7
9.5
5976THAM
0.976128.8
8001WOODHALL
0.945124.7
4.5
1.4
11.4 11.3
3.08006KGALE VIEW
0.961126.9
8.4
2.3
16.7
3.9
16.8
3.6
8007GOVT ENCLAVE
0.957124.5
21.1
5.7
10.6
0.2
10.6
2.810.6
0.2
10.6
2.8
9.1
0.8
5149BT_SA/A1
0.959126.6
9.1
8.78.4 0.959
126.6
8.4 9.1
4. 7 9
.5
4.79. 5
5.2
4.7
0.968127.8
5.3
9.7 10.9 5141BRDHR1
0.960126.7
7.4
13.9
7.5
13.8
7.4
13.9
7.5
13.8
122.8
4.3
22.8
3.4
123.1
4.3
23.1
3.4
1 149.3
9.3
49.3
7.3
49.3
9.3
49.3
7.3
5972GABRN/E1
0.962126.9
10.2
2.3
10.2
2.4
10.2
2.3
10.2
2.4
0.960126.7
13.2
4.4 4.7
13.2
4.4
13.2
4.7
12.5
3.8
12.4
4.4
5.3
9.7 9.0
5.0
9.0
5.0
9.0
5.0
5147BT_SA/C1
1 1
13.2
5122KOFF
4.8
9.1
11
5973ARPRT
12.3
64.465.0
13.0
5.4
8.4
5993RSA_BPCA
9.5
4.6
9.1
5980GABRN/S1
0.97310.7
20.9
5.7
13.8
2.8
0.9
75
114.0
3.9
14.0
3.4
0.9
75
16.8
1.9
6.8
1.7
0.9
75
16.8 6.8
0.9
75
17.0 7.0
1.72.0
1.71.9
5162MORPL/G1
1.02011.2
33.0
11 0.6
29.4
3.8
5163MORPL/G2
1.02011.2
33.0
3.8R 11 0.6
29.4
3.8
5164MORPL/G3
1.02011.2
33.0
4.1R 11
29.5
1.6
29.5
4.1
5165MORPL/G4
1.02011.2
33.0
4.1R 11
28.9
1.7
28.9
4.1
29.4
29.4
3.8R
5142SGDTS2
0.968213.0
5140MORPL2
1.012222.6
11.4
5996THAM2
0.973214.2
8019ISANG
0.977215.0
119.1
8.1
119.9
5.7
5137ORAPA
SW
20.3
5138SERUL2
1.014223.0
82.9
13.5
83.8
21.5
5736PHOKJ2
1.013222.8
10.0
0.0
106.1
23.3
104.8
14.0
270.0
45.0
270.3
12.585.7
4.4
84.0
28.6
72.2 70.9
24.4
8060MAUN 220
1.000220.0
35.3
8.9
35.1
3.0
5139SLPKW2
1.011222.4
50.4
18.4
50.4
17.7
27.8 26.8
1
15.1
20.5
15.1
20.2
0.9
8751
15.8
21.5
15.8
21.2
1
15.0 15.0
20.1
39.3
65.3
20.3
0.9
875
0.9
875
1.007221.6
66.366.7
1 1
32.3
82.5
36.1
1 1
32.3
2.6
65.2
82.5
36.1
82.5 82.5
1 1
0.4 10.6
8065METSIMOTLHAB
0.972213.9
7.1
66.2
2.566.6
7.1
66.2
2.5
25.4
19.1
25.4
17.1
21.4 5.2
21.4
10.5
5961ORAPA220
1.013222.9
42.1
4.3
1 0.9
8
42.1
5.5
42.1
4.3
1 0.9
8
42.1
5.5
83.9
10.0
84.2
8.6
8076MAUN220
0.973214.1
28.7
6.811
28.7
6.1
28.7 28.7
SW
0.0
1 6.8 6.1 1
66.6
16283INSUKAM3
305.7
100.5
1 1.0
2
207.9
57.2
208.0
52.1
1.000330.0
16280SVCINSK
1.06018.5
0.0
107.1R
1 1 0.0
107.1
0.1
101.0
BOTSWANA IPP PROJECT 29 Energy & Natural Resource Corporation
Figure 6: 600 MW with Phokoje-Medupi out of service
The network contingency is operated within acceptable limits.
Figure 7: 600 MW with MorupuleB-Isang out of service
The network contingency is operated within acceptable limits.
0.971128.2
6.6
1.2
6.6
3.5
2.2
5.3
2.2
2.3
71053DWB SS
11.2
1.0
11.2
1.0
BPC Generation : 1032.0 MW
ENRC Generation : 600.0 MW
BPC - Eskom 132kV flow : 3.3 MW
BPC - ZESA Total Inflow : 79.4 MW
BPC - Eskom 400kV flow : 0.0 MW
BPC - Watershed 400kV flow : 710.0 MW
BPC - Eskom Total flow : 713.3 MW
145MEDUPI4
5735PHOKJ4
SW
98.8
0.994397.7
8016MORUPULE400
15.4
251.2
18.9
8061CB7
104.7
430.4
8062CB8
54.4
423.0
8017ISANG
SW
0.0
423.0
11.835.3 54.4
1.004401.4
5130BT_ZM4
1.005402.1
18014ZESA-BPC
1.005402.1
79.4
91.9
79.4
91.9
16284INSUKAM4
1.013405.0
83.0
79.4
91.9 79.4
91.9
79.6
129.6
423.0430.4
8018MMAMABULA
249.4
1.012404.6
0.970387.9
1.004401.4
1.016406.2
5962ORAPA400
0.999399.6
119.0
64.5
119.5
63.6
1
SW
99.8
8075MAUN400
0.981392.3
57.7
51.5
57.5
109.8
SW
96.2
79.2
138WATRS4
0.969387.5
349.8
71.4
355.0
13.4
625MOOKODI4
1.022408.8
125PLUTO4
0.989395.6
128SELEMO4
1.005402.0
252.1
130.0
249.2
124.5
138.7
141.8
139.3
38.4
58.7
133.1
58.5
8.0
SW
0.0
284.7
175.1
283.7
153.3
10.0
97.8
SW
0.0 349.8
71.4
355.0
13.4
430.4
430.5
104.7
423.1
11.8
0.970387.9
35.3
8020MORUPULE B 1
1.02020.4
150.0
29.8R
1 -30.0
0
133.7
16.9
133.7
29.8
8021MORUPULE B 2
1.02020.4
150.0
29.8R
1
133.7
16.9
133.7
29.8
8022MORUPULE B 3
1.02020.4
150.0
29.8R
1 -30.0
01
133.7
29.8
8023MORUPULE B 4
1.02020.4
150.0
29.8R
1 -30.0
01
133.7133.7
29.8 16.9
16.9
133.7
1 -30.0
0
1
1.02020.4
134.3
16.9
1 -30.0
01
134.3
29.9
150.0
29.9R
8025MORUPULE B 6
1.02020.4
134.3
16.9
1 -30.0
01
134.3
29.9
150.0
29.9R
8024MORUPULE B 5
8026MORUPULE B 7
1.02020.4
8027MORUPULE B 8
1.02020.4
300.0
31.9
1 -30.0
01
300.0
63.5
300.0
31.9
1 -30.0
01
300.0
63.5
1
16.3 0.0
1
16.3
0.0
1
16.3
0.0
1
16.3
0.0
1
15.7 0.0
1
15.7 0.0
1300.0
63.5R
1300.0
63.5R
3190SPITS1
0.979129.2
71002AMANDE13
0.981129.5
9.7
0.7
9.8
0.3
0.971128.2
17.2
3.96.0
2.2 4.9 71210POKO1
0.980129.3
4.9
1.0
4.9
0.4
0.980129.4
4.6
1.0
4.6
0.0
0.961126.9
5148BT_SA/B1
0.967127.6
71212NORPLAN1
5143SGDTS1
0.965127.4
5145GABRN/S1
0.961126.9
5994RSA_BPCB
0.967127.6
5995RSA_BPCC
0.968127.8
71054DWAALBO1
8063PHAKALANE
71055DERDEPOORT
2.4
6.4
2.4
6.2 2.4
2.2
2.4
6.2
0.964127.2
6.0
42.1
2.911 1.6 42.0
2.911
42.0
1.6
42.1
93035WATRS_D6
0.966127.5
93400WATRS_D5
0.966127.5
154.0
12.811
154.0
5.4
154.0
12.811
154.0
5.4
5123KOP132
0.962127.0
2.5
6.6 7.1
0.968127.8
7.5
1.4
5.8
5976THAM
0.979129.2
8001WOODHALL
0.948125.1
4.6
1.4
12.2 12.1
2.68006KGALE VIEW
0.964127.3
8.4
2.3
13.7
5.7
13.7
5.3
8007GOVT ENCLAVE
0.961124.9
21.2
5.7
10.6
0.2
10.6
2.810.6
0.2
10.6
2.8
2.5
0.4
5149BT_SA/A1
0.963127.1
2.5
6.66.4 0.963
127.1
6.4 2.4
1.4 5
.8
1. 45. 8
1.3
1.4
0.969128.0
2.3
6.1 7.3 5141BRDHR1
0.963127.2
8.7
12.6
8.7
12.5
8.7
12.6
8.7
12.5
121.4
4.9
21.4
4.1
121.6
4.9
21.6
4.1
1 146.1
10.5
46.1
8.8
46.1
10.5
46.1
8.8
5972GABRN/E1
0.965127.3
10.2
2.3
10.2
2.4
10.2
2.3
10.2
2.4
0.963127.1
13.2
4.4 4.7
13.2
4.4
13.2
4.7
12.5
3.8
12.5
4.5
2.3
6.1 5.3
2.2
5.3
2.2
5.3
2.2
5147BT_SA/C1
1 1
13.2
5122KOFF
1.3
2.4
11
5973ARPRT
9.1
55.656.0
9.5
2.3
6.4
5993RSA_BPCA
5.8
1.4
2.4
5980GABRN/S1
0.97710.7
21.0
5.7
13.8
2.8
0.9
75
114.0
4.0
14.0
3.4
0.9
75
16.9
1.9
6.9
1.7
0.9
75
16.9 6.9
0.9
75
17.0 7.0
1.72.0
1.71.9
5162MORPL/G1
1.02011.2
33.0
11 0.8
29.4
4.0
5163MORPL/G2
1.02011.2
33.0
4.0R 11 0.8
29.4
4.0
5164MORPL/G3
1.02011.2
33.0
4.3R 11
29.5
1.8
29.5
4.3
5165MORPL/G4
1.02011.2
33.0
4.3R 11
28.9
2.0
28.9
4.3
29.4
29.4
4.0R
5142SGDTS2
0.972213.9
5140MORPL2
1.011222.5
11.4
5996THAM2
0.977215.0
8019ISANG
0.982216.0
112.8
11.0
113.5
8.0
5137ORAPA
SW
20.3
5138SERUL2
1.010222.1
42.9
0.2
43.1
11.3
5736PHOKJ2
1.005221.1
10.0
0.0
34.7
4.7
34.6
11.6
172.0
25.2
172.0
12.193.3
9.0
91.4
22.7
78.7 77.2
19.5
8060MAUN 220
1.000220.0
10.6
10.0
10.6
16.2
5139SLPKW2
1.003220.6
50.0
18.2
50.1
17.4
27.5 26.5
1
55.8
5.1
55.8
3.7
0.9
8751
58.6
5.3
58.6
3.9
1
55.5 55.5
3.7
39.3
64.8
5.0
0.9
875
0.9
875
1.008221.7
63.463.8
1 1
25.2
68.0
27.7
1 1
25.2
6.4
64.7
68.0
27.7
68.0 68.0
1 1
1.9 9.5
8065METSIMOTLHAB
0.976214.8
5.8
63.2
4.163.6
5.8
63.2
4.1
22.4
19.8
22.5
17.8
20.7 5.1
20.7
10.5
5961ORAPA220
1.014223.1
30.6
7.4
1 0.9
8
30.6
8.1
30.6
7.4
1 0.9
8
30.6
8.1
61.1
16.8
61.3
14.8
8076MAUN220
0.976214.7
28.7
6.811
28.7
6.2
28.7 28.7
SW
0.0
1 6.8 6.2 1
63.6
16283INSUKAM3
305.7
100.5
1 1.0
2
210.8
73.9
210.9
68.4
1.000330.0
16280SVCINSK
1.08018.9
0.0
145.7R
1 1 0.0
145.7
0.2
134.9
0.968127.7
9.0
1.4
9.0
3.6
0.2
4.9
0.2
1.9
71053DWB SS
8.9
1.6
8.9
1.6
BPC Generation : 1032.0 MW
ENRC Generation : 600.0 MW
BPC - Eskom 132kV flow : -4.4 MW
BPC - ZESA Total Inflow : 79.3 MW
BPC - Eskom 400kV flow : 79.5 MW
BPC - Watershed 400kV flow : 628.9 MW
BPC - Eskom Total flow : 704.0 MW
145MEDUPI4
5735PHOKJ4
SW
101.2
1.006402.3
8016MORUPULE400
57.5
338.2
46.2
8061CB7
171.8
699.3
8062CB8
121.1
679.7
8017ISANG
SW
0.0
679.7
57.9 11.8 121.1
1.007403.0
5130BT_ZM4
1.014405.6
18014ZESA-BPC
1.014405.6
79.3
65.1
79.3
65.1
16284INSUKAM4
1.014405.6
54.9
79.3
65.1 79.3
65.1
79.5
104.2
679.7699.3
8018MMAMABULA
335.0
1.012404.6
0.959383.8
1.007403.0
79.2
65.8
79.5
90.71.013405.3
5962ORAPA400
1.003401.3
127.6
63.3
128.2
65.1
1
SW
100.6
8075MAUN400
0.985393.9
57.9
52.0
57.7
110.7
SW
97.0
79.2
138WATRS4
0.966386.3
310.2
77.6
314.5
4.7
625MOOKODI4
1.021408.2
125PLUTO4
0.988395.0
128SELEMO4
1.004401.4
226.7
134.5
224.2
125.3
97.8
143.6
98.2
43.1
65.7
133.1
65.5
7.3
SW
0.0
287.5
174.7
286.5
153.2
10.0
97.5
SW
0.0 310.2
77.6
314.5
4.7
699.3
0.959383.8
11.8
8020MORUPULE B 1
1.02020.4
150.0
24.2R
1 -30.0
0
133.7
11.6
133.7
24.2
8021MORUPULE B 2
1.02020.4
150.0
24.2R
1
133.7
11.6
133.7
24.2
8022MORUPULE B 3
1.02020.4
150.0
24.2R
1 -30.0
01
133.7
24.2
8023MORUPULE B 4
1.02020.4
150.0
24.2R
1 -30.0
01
133.7133.7
24.2 11.6
11.6
133.7
1 -30.0
0
1
1.02020.4
134.3
11.5
1 -30.0
01
134.3
24.3
150.0
24.3R
8025MORUPULE B 6
1.02020.4
134.3
11.5
1 -30.0
01
134.3
24.3
150.0
24.3R
8024MORUPULE B 5
8026MORUPULE B 7
1.02020.4
8027MORUPULE B 8
1.02020.4
300.0
20.9
1 -30.0
01
300.0
52.1
300.0
20.9
1 -30.0
01
300.0
52.1
1
16.3 0.0
1
16.3
0.0
1
16.3
0.0
1
16.3
0.0
1
15.7 0.0
1
15.7 0.0
1300.0
52.1R
1300.0
52.1R
3190SPITS1
0.977129.0
71002AMANDE13
0.979129.2
9.8
0.8
9.9
0.2
0.968127.7
17.1
3.98.2
2.9 5.6 71210POKO1
0.978129.1
4.9
1.1
4.9
0.4
0.978129.1
4.6
1.1
4.6
0.0
0.951125.5
5148BT_SA/B1
0.962126.9
71212NORPLAN1
5143SGDTS1
0.955126.1
5145GABRN/S1
0.952125.6
5994RSA_BPCB
0.962126.9
5995RSA_BPCC
0.961126.9
71054DWAALBO1
8063PHAKALANE
71055DERDEPOORT
0.3
7.5
0.3
7.40.3
3.3
0.3
7.4
0.955126.1
8.2
40.7
3.111 1.8 40.6
3.111
40.6
1.8
40.7
93035WATRS_D6
0.963127.2
93400WATRS_D5
0.963127.2
147.8
11.211
147.8
4.4
147.8
11.211
147.8
4.4
5123KOP132
0.954125.9
0.3
7.7 8.1
0.961126.9
7.9
4.3
6.3
5976THAM
0.969127.8
8001WOODHALL
0.938123.9
4.5
1.4
12.4 12.3
2.68006KGALE VIEW
0.955126.0
8.4
2.3
12.1
5.3
12.1
4.9
8007GOVT ENCLAVE
0.951123.7
21.0
5.6
10.5
0.2
10.5
2.810.5
0.2
10.5
2.8
0.3
0.5
5149BT_SA/A1
0.955126.0
0.3
7.77.5 0.955
126.0
7.50.3
4.3 6
.3
4. 36. 3
1.9
4.3
0.960126.7
0.3
5.7 6.9 5141BRDHR1
0.953125.8
9.4
12.4
9.4
12.2
9.4
12.4
9.4
12.2
120.5
4.5
20.5
3.8
120.7
4.6
20.7
3.9
1 144.2
9.8
44.2
8.2
44.2
9.8
44.2
8.2
5972GABRN/E1
0.954126.0
10.1
2.3
10.1
2.4
10.1
2.3
10.1
2.4
0.953125.8
13.1
4.3 4.6
13.1
4.3
13.1
4.6
12.4
3.8
12.3
4.4
0.3
5.7 4.9
0.2
4.9
0.2
4.9
0.2
5147BT_SA/C1
1 1
13.1
5122KOFF
4.3
0.3
11
5973ARPRT
10.4
51.251.6
10.7
0.3
7.5
5993RSA_BPCA
6.3
4.4
0.3
5980GABRN/S1
0.96710.6
20.8
5.6
13.7
2.8
0.9
75
113.9
3.9
13.9
3.4
0.9
75
16.8
1.9
6.8
1.7
0.9
75
16.8 6.8
0.9
75
16.9 6.9
1.71.9
1.71.9
5162MORPL/G1
1.02011.2
33.0
11 0.5
29.4
3.7
5163MORPL/G2
1.02011.2
33.0
3.7R 11 0.5
29.4
3.7
5164MORPL/G3
1.02011.2
33.0
3.9R 11
29.5
1.4
29.5
3.9
5165MORPL/G4
1.02011.2
33.0
3.9R 11
28.9
1.6
28.9
3.9
29.4
29.4
3.7R
5142SGDTS2
0.962211.6
5140MORPL2
1.012222.7
11.4
5996THAM2
0.967212.7
8019ISANG
0.971213.6
108.5
9.9
109.2
6.8
5137ORAPA
SW
20.5
5138SERUL2
1.015223.4
36.2
5.4
36.4
17.3
5736PHOKJ2
1.014223.0
10.0
0.0
29.1
15.2
29.0
1.4
237.8
25.0
237.9
0.2135.6
0.7
131.6
18.5
114.4 111.2
16.2
8060MAUN 220
1.000220.0
9.9
3.0
9.9
9.3
5139SLPKW2
1.012222.6
50.5
18.4
50.5
17.7
27.9 26.9
1
57.9
11.9
57.9
10.4
0.9
8751
60.7
12.5
60.7
10.9
1
57.5 57.5
10.3
39.3
65.3
11.8
0.9
875
0.9
875
1.013222.8
61.261.6
1 1
24.2
25.4
24.8
1 1
24.2
0.9
65.3
25.4
24.8
25.4 25.4
1 1
1.5 9.7
8065METSIMOTLHAB
0.966212.5
6.0
61.0
3.761.4
6.0
61.0
3.7
21.1
18.8
21.1
16.9
20.1 5.1
20.1
10.3
5961ORAPA220
1.019224.1
34.8
6.4
1 0.9
8
34.8
7.3
34.8
6.4
1 0.9
8
34.8
7.3
69.4
14.7
69.7
12.9
8076MAUN220
0.980215.6
28.9
6.911
28.9
6.2
28.9 28.9
SW
0.0
1 6.9 6.2 1
61.4
16283INSUKAM3
305.7
100.5
1 1.0
2
210.9
60.9
211.0
55.6
1.000330.0
16280SVCINSK
1.06318.6
0.0
114.2R
1 1 0.0
114.2
0.1
107.4
BOTSWANA IPP PROJECT 30 Energy & Natural Resource Corporation
Figure 8: 600 MW with Isang-Watershed out of service
The network contingency is operated within acceptable limits.
Figure 9: 600 MW with Morupule transformer out of service
The minimum requirement for ENRC connection of 600 MW for wheeling south is:
• 1st Isang-Watershed 400 kV line (first new route for Medupi-Phokoje contingency)
• 2nd Isang-Watershed 400 kV line (second new route for n-1 of Isang-Watershed for transfer limit
exceedance on Medupi-Phokoje line)
• Morupule-Isang 2nd 400 kV line (if the Morupule-Mmamabula-Isang line is not constructed)
• ENRC power station loop-in and out of Isang-MorupuleB 400 kV line
• Possible Eskom network reinforcements (not studied)
• Possible phase shifting transformers at Watershed (contribute to control of flows on wheeling
paths to prevent transfer limit exceedances)
BOSA Interconnector Project
Eskom and BPC through SAPP have initiated a feasibility study in terms of a Botswana – South Africa
transmission interconnector (BOSA), this project will supply the backbone transmission
0.968127.8
2.8
5.9
2.8
8.2
8.8
10.8
8.7
8.1
71053DWB SS
21.2
3.7
21.2
3.7
BPC Generation : 1032.0 MW
ENRC Generation : 600.0 MW
BPC - Eskom 132kV flow : 35.6 MW
BPC - ZESA Total Inflow : 77.9 MW
BPC - Eskom 400kV flow : 87.8 MW
BPC - Watershed 400kV flow : 585.3 MW
BPC - Eskom Total flow : 708.8 MW
145MEDUPI4
5735PHOKJ4
SW
101.3
1.006402.6
8016MORUPULE400
58.0
315.8
50.8
8061CB7
102.4
390.5
8062CB8
51.8
384.4
8017ISANG
SW
0.0
384.4
2.145.3 51.8
1.007402.6
5130BT_ZM4
1.014405.8
18014ZESA-BPC
1.014405.8
77.9
63.7
77.9
63.7
16284INSUKAM4
1.014405.6
53.5
77.9
63.7 77.9
63.7
78.1
102.9
384.4390.5
8018MMAMABULA
313.0
1.012404.6
0.973389.3
1.007402.6
87.6
65.1
87.8
89.71.013405.3
5962ORAPA400
1.003401.1
122.8
62.9
123.3
65.7
1
SW
100.5
8075MAUN400
0.984393.8
57.9
51.9
57.7
110.6
SW
96.9
77.8
138WATRS4
0.969387.5
625MOOKODI4
1.022408.7
125PLUTO4
0.988395.2
128SELEMO4
1.004401.6
211.1
128.9
208.8
116.4
71.1
129.9
71.4
30.9
70.3
135.5
70.0
4.9
SW
0.0
290.1
175.8
289.0
154.4
10.0
97.6
SW
0.0 571.1
134.9
585.3
51.6
390.5
390.5
102.5
384.4
2.1
0.973389.3
45.3
8020MORUPULE B 1
1.02020.4
150.0
25.4R
1 -30.0
0
133.7
12.7
133.7
25.4
8021MORUPULE B 2
1.02020.4
150.0
25.4R
1
133.7
12.7
133.7
25.4
8022MORUPULE B 3
1.02020.4
150.0
25.4R
1 -30.0
01
133.7
25.4
8023MORUPULE B 4
1.02020.4
150.0
25.4R
1 -30.0
01
133.7133.7
25.4 12.7
12.7
133.7
1 -30.0
0
1
1.02020.4
134.3
12.7
1 -30.0
01
134.3
25.5
150.0
25.5R
8025MORUPULE B 6
1.02020.4
134.3
12.7
1 -30.0
01
134.3
25.5
150.0
25.5R
8024MORUPULE B 5
8026MORUPULE B 7
1.02020.4
8027MORUPULE B 8
1.02020.4
300.0
23.3
1 -30.0
01
300.0
54.5
300.0
23.3
1 -30.0
01
300.0
54.5
1
16.3 0.0
1
16.3
0.0
1
16.3
0.0
1
16.3
0.0
1
15.7 0.0
1
15.7 0.0
1300.0
54.5R
1300.0
54.5R
3190SPITS1
0.976128.8
71002AMANDE13
0.978129.1
9.4
1.1
9.4
0.1
0.968127.8
17.1
3.9 4.1
5.0 7.6 71210POKO1
0.977128.9
4.7
1.2
4.7
0.6
0.977129.0
4.4
1.2
4.4
0.2
0.967127.6
5148BT_SA/B1
0.959126.6
71212NORPLAN1
5143SGDTS1
0.971128.1
5145GABRN/S1
0.965127.4
5994RSA_BPCB
0.959126.6
5995RSA_BPCC
0.970128.0
71054DWAALBO1
8063PHAKALANE
71055DERDEPOORT
15.5
7.4
15.5
7.3 15.3
3.8
15.5
7.3
0.965127.4
4.1
46.4
4.011 2.4 46.2
3.911
46.2
2.4
46.4
93035WATRS_D6
0.966127.5
93400WATRS_D5
0.966127.5
144.3
12.411
144.3
6.0
144.3
12.411
144.3
6.0
5123KOP132
0.965127.4
15.5
7.6 8.0
0.970128.0
11.7
11.3
10.2
5976THAM
0.985130.0
8001WOODHALL
0.953125.7
4.6
1.5
10.7 10.6
3.18006KGALE VIEW
0.969127.9
8.5
2.3
20.1
3.9
20.2
3.6
8007GOVT ENCLAVE
0.965125.4
21.3
5.7
10.6
0.2
10.6
2.910.6
0.2
10.6
2.9
15.6
0.8
5149BT_SA/A1
0.965127.3
15.5
7.67.4 0.965
127.3
7.4 15.5
11
.3
10.2
11.3
10
.2
6.2
11.3
0.976128.8
9.4
11.5 12.6 5141BRDHR1
0.969127.9
5.9
14.7
5.9
14.5
5.9
14.7
5.9
14.5
124.6
4.6
24.6
3.6
124.9
4.6
24.9
3.6
1 153.0
9.9
53.0
7.7
53.0
9.9
53.0
7.7
5972GABRN/E1
0.970128.0
10.3
2.3
10.3
2.4
10.3
2.3
10.3
2.4
0.968127.8
13.3
4.4 4.7
13.3
4.4
13.3
4.7
12.6
3.9
12.5
4.5
9.4
11.5 10.8
8.8
10.8
8.8
10.8
8.8
5147BT_SA/C1
1 1
13.3
5122KOFF
11.4
15.5
11
5973ARPRT
11.3
73.774.4
12.3
9.5
7.4
5993RSA_BPCA
10.2
11.0
15.5
5980GABRN/S1
0.98110.8
21.1
5.7
13.9
2.9
0.9
75
114.1
4.0
14.1
3.5
0.9
75
16.9
2.0
6.9
1.7
0.9
75
16.9 6.9
0.9
75
17.0 7.0
1.72.0
1.72.0
5162MORPL/G1
1.02011.2
33.0
11 0.6
29.4
2.5
5163MORPL/G2
1.02011.2
33.0
2.5R 11 0.6
29.4
2.5
5164MORPL/G3
1.02011.2
33.0
2.5R 11
29.5
0.0
29.5
2.5
5165MORPL/G4
1.02011.2
33.0
2.4R 11
28.9
0.1
28.9
2.4
29.4
29.4
2.5R
5142SGDTS2
0.977215.0
5140MORPL2
1.016223.6
11.5
5996THAM2
0.982216.1
8019ISANG
0.987217.0
127.1
8.7
128.0
6.8
5137ORAPA
SW
20.5
5138SERUL2
1.017223.8
51.6
5.1
51.9
16.2
5736PHOKJ2
1.015223.2
10.0
0.0
49.3
13.3
49.1
2.4
183.4
31.2
183.5
16.386.7
8.4
85.0
25.3
73.1 71.8
21.6
8060MAUN 220
1.000220.0
2.2
3.3
2.2
9.8
5139SLPKW2
1.013222.8
50.5
18.5
50.5
17.7
27.9 26.9
1
48.3
10.9
48.3
9.9
0.9
8751
50.7
11.5
50.7
10.4
1
48.0 48.0
9.8
39.5
65.4
10.9
0.9
875
0.9
875
1.013222.8
70.270.7
1 1
27.9
91.7
32.2
1 1
27.9
6.0
65.3
91.7
32.2
91.7 91.7
1 1
0.5 10.5
8065METSIMOTLHAB
0.981215.9
6.9
70.3
2.670.7
6.9
70.3
2.6
28.3
20.2
28.4
18.2
22.4 5.2
22.4
10.6
5961ORAPA220
1.018224.1
32.4
6.4
1 0.9
8
32.4
7.2
32.4
6.4
1 0.9
8
32.4
7.2
64.7
14.8
64.9
12.8
8076MAUN220
0.980215.5
28.9
6.811
28.9
6.2
28.9 28.9
SW
0.0
1 6.8 6.2 1
70.7
16283INSUKAM3
305.7
100.5
1 1.0
2
210.2
60.3
210.4
55.0
1.000330.0
16280SVCINSK
1.06218.6
0.0
112.5R
1 1 0.0
112.5
0.1
105.9
0.972128.3
7.1
0.3
7.1
2.5
2.0
4.5
2.0
1.4
71053DWB SS
10.5
0.2
10.5
0.2
BPC Generation : 1032.0 MW
ENRC Generation : 600.0 MW
BPC - Eskom 132kV flow : 1.3 MW
BPC - ZESA Total Inflow : 83.3 MW
BPC - Eskom 400kV flow : -21.6 MW
BPC - Watershed 400kV flow : 727.2 MW
BPC - Eskom Total flow : 707.0 MW
145MEDUPI4
5735PHOKJ4
SW
101.2
1.006402.4
8016MORUPULE400
65.6
325.9
56.2
8061CB7
111.9
471.6
8062CB8
61.5
462.8
8017ISANG
SW
0.0
462.8
18.328.7 61.5
1.004401.8
5130BT_ZM4
1.014405.6
18014ZESA-BPC
1.014405.6
83.3
65.1
83.3
65.1
16284INSUKAM4
1.014405.6
55.1
83.3
65.1 83.3
65.1
83.5
104.1
462.8471.7
8018MMAMABULA
322.9
1.012404.6
0.969387.7
1.004401.8
21.6
57.1
21.6
84.31.014405.6
5962ORAPA400
1.001400.4
133.7
60.4
134.3
66.6
1
SW
100.2
8075MAUN400
0.983393.1
57.8
51.7
57.6
110.2
SW
96.6
83.1
138WATRS4
0.968387.2
358.1
73.5
363.6
14.3
625MOOKODI4
1.022408.7
125PLUTO4
0.989395.5
128SELEMO4
1.005401.9
257.4
131.1
254.4
126.8
147.6
145.1
148.3
41.0
57.1
132.5
56.9
8.5
SW
0.0
283.9
174.9
282.9
153.0
10.0
97.7
SW
0.0 358.1
73.5
363.6
14.3
471.6
471.7
111.9
462.9
18.3
0.969387.7
28.7
8020MORUPULE B 1
1.02020.4
150.0
28.4R
1 -30.0
0
133.7
15.6
133.7
28.4
8021MORUPULE B 2
1.02020.4
150.0
28.4R
1
133.7
15.6
133.7
28.4
8022MORUPULE B 3
1.02020.4
150.0
28.4R
1 -30.0
01
133.7
28.4
8023MORUPULE B 4
1.02020.4
150.0
28.4R
1 -30.0
01
133.7133.7
28.4 15.6
15.6
133.7
1 -30.0
0
1
1.02020.4
134.3
15.5
1 -30.0
01
134.3
28.5
150.0
28.5R
8025MORUPULE B 6
1.02020.4
134.3
15.5
1 -30.0
01
134.3
28.5
150.0
28.5R
8024MORUPULE B 5
8026MORUPULE B 7
1.02020.4
8027MORUPULE B 8
1.02020.4
300.0
29.1
1 -30.0
01
300.0
60.6
300.0
29.1
1 -30.0
01
300.0
60.6
1
16.3 0.0
1
16.3
0.0
1
16.3
0.0
1
16.3
0.0
1
15.7 0.0
1
15.7 0.0
1300.0
60.6R
1300.0
60.6R
3190SPITS1
0.979129.2
71002AMANDE13
0.981129.5
9.8
0.7
9.8
0.3
0.972128.3
17.2
3.96.6
1.4 4.1 71210POKO1
0.980129.3
4.9
1.0
4.9
0.4
0.980129.4
4.6
1.0
4.6
0.0
0.964127.2
5148BT_SA/B1
0.969127.9
71212NORPLAN1
5143SGDTS1
0.968127.7
5145GABRN/S1
0.963127.2
5994RSA_BPCB
0.969127.9
5995RSA_BPCC
0.970128.0
71054DWAALBO1
8063PHAKALANE
71055DERDEPOORT
1.5
5.5
1.5
5.4 1.5
1.3
1.5
5.4
0.966127.5
6.6
42.0
2.611 1.3 41.8
2.611
41.8
1.3
42.0
93035WATRS_D6
0.965127.4
93400WATRS_D5
0.965127.4
155.2
12.611
155.2
5.1
155.2
12.611
155.2
5.1
5123KOP132
0.965127.3
1.5
5.8 6.2
0.970128.0
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2.1
4.7
5976THAM
0.982129.6
8001WOODHALL
0.951125.5
4.6
1.5
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2.58006KGALE VIEW
0.967127.6
8.5
2.3
13.4
6.2
13.4
5.9
8007GOVT ENCLAVE
0.963125.2
21.2
5.7
10.6
0.2
10.6
2.910.6
0.2
10.6
2.9
1.5
0.3
5149BT_SA/A1
0.965127.4
1.5
5.85.5 0.965
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5.5 1.5
2.1 4
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2. 14. 7
0.2
2.1
0.971128.2
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0.966127.5
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8.9
12.2
8.9
12.4
8.9
12.2
121.2
5.1
21.2
4.3
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5.1
21.5
4.4
1 145.8
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45.8
9.3
45.8
11.0
45.8
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5972GABRN/E1
0.967127.7
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2.3
10.2
2.4
10.2
2.3
10.2
2.4
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13.3
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13.3
4.4
13.3
4.7
12.5
3.9
12.5
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5147BT_SA/C1
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5122KOFF
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5973ARPRT
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54.554.9
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5993RSA_BPCA
4.7
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5980GABRN/S1
0.97910.8
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5.7
13.9
2.9
0.9
75
114.1
4.0
14.1
3.5
0.9
75
16.9
2.0
6.9
1.7
0.9
75
16.9 6.9
0.9
75
17.0 7.0
1.72.0
1.72.0
5162MORPL/G1
1.02011.2
33.0
11 1.0
29.4
2.2
5163MORPL/G2
1.02011.2
33.0
2.2R 11 1.0
29.4
2.2
5164MORPL/G3
1.02011.2
33.0
2.0R 11
29.5
0.5
29.5
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5165MORPL/G4
1.02011.2
33.0
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28.9
0.4
28.9
1.9
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29.4
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5142SGDTS2
0.975214.6
5140MORPL2
1.018223.9
11.6
5996THAM2
0.980215.7
8019ISANG
0.985216.7
112.2
12.0
112.9
8.9
5137ORAPA
SW
20.5
5138SERUL2
1.018224.0
2.9
6.2
2.9
6.8
5736PHOKJ2
1.016223.6
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0.0
25.9
2.0
26.0
14.9
57.7
3.5
57.0
35.0
48.6 48.0
29.6
8060MAUN 220
1.000220.0
34.3
9.2
34.4
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5139SLPKW2
1.014223.2
50.6
18.5
50.6
17.8
28.0 27.0
1
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85.8
3.9
0.9
8751
90.0
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63.263.6
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37.8
1 1
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37.8
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0.979215.5
5.4
63.0
4.763.4
5.4
63.0
4.7
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20.2
22.1
18.2
20.6 5.1
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5961ORAPA220
1.018223.9
37.9
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1 0.9
8
37.9
6.0
37.9
5.0
1 0.9
8
37.9
6.0
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8076MAUN220
0.978215.1
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6.811
28.8
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28.8 28.8
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0.0
1 6.8 6.2 1
63.4
16283INSUKAM3
305.7
100.5
1 1.0
2
212.7
61.1
212.8
55.7
1.000330.0
16280SVCINSK
1.06318.6
0.0
113.3R
1 1 0.0
113.3
0.1
106.6
BOTSWANA IPP PROJECT 31 Energy & Natural Resource Corporation
infrastructure for cross border IPP supply to South Africa and this initiative has been emphasized and
broadened in terms of the Agreement in terms of Cooperation in the Field of Energy between the
Governments of South Africa and Botswana concluded on 28 August 2012 and revised in February
2016.
(Annexures 7 and 12)
4.8 Heritage
Heritage Impact Assessments (HIA) has been completed and approved.
(Annexure 30)
4.9 Proposed Project Timeline
It is anticipated the Projects will follow the estimated timeline below:
Milestone Project
Project development phase 12 months
Project implementation phase 30 – 36 months
COD FC + 45 months
Table 11 Project timeline
Registration on Coal IPP Programme 23 July 2014
STEAG Prefeasibility Study 05 September 2014
SAPP NDA & Technical Data 06 September 2014
Transmission Integration Studies Commenced 10 March 2015
Commenced Discussions with DoE 15 June 2015
MCM Memorandum of Understanding 02 March 2016
Dept. Energy Cross Border Determination 20 April 2016
Water Supply Pre-feasibility 15 May 2016
Land Application & Allocation 06 June 2016
ESIA Commenced & Registered 13 June 2016
Water Supply Feasibility (Morupule Complex) 18 November 2016
ESIA Scoping Report Submitted 30 January 2017
BPC Transmission Integration Approval 28 March 2017
EIA Environmental Scoping Report Approved 09 July 2017
MCM / MDCB Due Diligence 01 August 2017
MCM MoA (Coal Supply) 28 February 2020
IPP Feasibility Study (Commencement) 08 January 2020 Table 12
BOTSWANA IPP PROJECT 32 Energy & Natural Resource Corporation
5 Project Structure
5.1 Project Ownership
Each Project is expected to have the following ownership structure:
Figure 10: Project Ownership Structure
The Investors will be the following Parties:
• ENRC up to 15% of the equity
• Strategic equity partner: 70% to 100% of the equity and/or
• Atlantic Energy Partners: up to 15% of the equity
5.2 Project Contractual Agreements
The Projects comprise the development, design, construction, commissioning, operation and
maintenance of 2 x 300MW coal fired power plants situated in Gaborone, Botswana together with
related interconnection infrastructure and all activities incidental.
The anticipated contractual structure is depicted in the following diagram:
Figure 11: Project Contracts
BOTSWANA IPP PROJECT 33 Energy & Natural Resource Corporation
5.2.1 Engineering, Procurement and Construction Contract
The anticipated EPC contractual structure will be formalized with fully bankable Head of Terms
between the Project and the EPC contractor. All the Projects will follow the same structure.
The EPC contractor will be responsible under the EPC Contract for the engineering, design,
manufacture, supply of material and components, construction, installation, connection, testing and
commissioning of the Projects. The EPC Contractor will also perform any distribution and transmission
connection works.
Status The term sheet is currently under negotiation and will be finalised
just prior to bid submission.
Parties TBD
Scope Lump sum, fixed price, turn-key contract
Implementation Pe-
riod
54 months from NTP
Liquidated damages Performance LD cap TBD
Delay LD cap TBD
Aggregate LD cap TBD
Bonds
The bonds are to be finalized after the EPC contract has been finalised
Table 13 EPC contract summary
5.2.2 Purchase of Land
ENRC has been granted the land by executed decision by the Palapye Sub Land Board.
5.2.3 Joint development
ENRC has entered into a memorandum of understanding with AEP for the joint development of energy
facilities in Botswana.
5.2.4 Operations and Maintenance
The Project will enter into an operating, maintenance and service agreement. It is anticipated that the
O&M contract will last for the duration of the 30-year PPA.
The underlying O&M Agreement will ensure the following critical processes and procedures are
adhered to:
• O&M services will always be performed to fulfill Project Warranty obligations.
• O&M services will always be performed to maximize the service life of the Coal Fired Power
Plant.
BOTSWANA IPP PROJECT 34 Energy & Natural Resource Corporation
• O&M services will be performed in accordance with: (A) the Technical Specifications &
Operating Manuals (B) Local site conditions, and (C) best industry practices and standards.
5.2.5 Regulatory and PPA
Substantial progress has been made in the South African regulatory environment towards
demonstrating the country’s commitment to introducing IPPs into the generation sector.
The Minister in consultation with NERSA has issued a Ministerial Determination in terms of section
34(1) of the Electricity Regulation Act and New Generation Capacity Regulations on 19 December 2012
in respect of the procurement of 7716MW of new base load IPP capacity (including 2500MW of local
and imported new coal base load generation capacity) in line with the IRP (the "Determination"). In
terms of the Determination, Eskom (or any successor entity designated by the Minister) has been
designated at the buyer of the electricity and the DoE has been designated as the procurer of the
electricity through an IPP procurement programme as contemplated in the New Generation Capacity
Regulations, which may include, where appropriate tendering processes, direct negotiation with one
or more potential developers or other procurement procedures.
This Coal Base load IPP Procurement Programme has been designed to procure the target of 2500MWs
of Energy to be derived from coal and to contribute towards socio-economic development and
sustainable growth, and to start and stimulate the participation of IPPs in the base load energy
generation capacity industry in South Africa.
5.2.6 PPA Term Sheet Progress
Substantial progress has been made with the South African Department of Energy regarding the
intricacies of a Cross Border PPA and the projects legal advisors – Norton Fulbright have taken the
existing South African coal based IPP PPA and revised this document in terms of a cross border IPP and
the main current points of discussion with the DoE area as follows:
SUMMARY OF KEY TERMS AND CONDITIONS
• The facility is to be located in Botswana, 280km North of Gaborone and approximately
5 km to the East of the Morupule Power Station.
• The facility is a 1200 MW coal fired power plant built in phases with the first phase
being 2 x 300MW and ultimately a total facility of 4 x 300 MW gross units.
• The PPA shall be for a 30 year operating period, subject to extensions.
• The Tariff will comprise of a US Dollar proportion and a South African Rand proportion.
These proportions are USD [80%] and ZAR [20%] respectively.
o Assuming a spot rate ZAR:USD of R15.31 to $1 and a PPA tariff 80% linked to
the USD, that will yield a tariff payable of ZAR [930] per MWh ([93] cents per
kWh) including [10] cents per kWh for grid connection costs.
• The gird infrastructure is required to be upgraded to allow the export of the facility’s
power generation:
o The facility shall sell the power at the point of gate of the facility,
BOTSWANA IPP PROJECT 35 Energy & Natural Resource Corporation
o BPC undertake responsibility to complete the necessary grid infrastructure up-
grades from the power plant up to the border of South Africa,
o Eskom undertake responsibility to complete the necessary grid infrastructure
upgrades from the South African border to Watershed substation as well as
the applicable upgrades of Watershed substation as may be required.
• The facility plans to reach COD for the first phase of 2 x 300MW within 3 years of Fi-
nancial Close.
BOTSWANA IPP PROJECT 36 Energy & Natural Resource Corporation
6 Project Economics
6.1 Overview
The Sponsor is in the process of securing non-recourse project financing for the ENRC Coal Fired Power
Plant Projects.
As such, the Sponsors have engaged with a limited number of lenders to secure the following the most
competitive terms for:
• Senior, non-recourse project finance facility;
• Subordinated/ facility;
• Senior inflation-linked debt facility;
• A VAT facility;
• Value-adding BEE financing, either JIBAR or inflation linked;
• A bid bond issue; and
• Such commitments from the potential lender as may be required under the REIPPPP.
The table below shows the anticipated total funding requirement per Project, with an accompanying
description of the facility type:
Facility Nature of Facility Estimated Facility
Amount (Rmn)
Senior debt Non-recourse secured credit facility with a Base Case tenor
to cover the construction period plus 30 years from COD,
available to fund project costs to completion of the
generation facilities.
20
Table 14 Type of debt facilities
6.2 Sources and Uses of Funds
The following table provides a breakdown of the estimated sources of funding and the expected
breakdown of costs to realise the projects. The Projects are expected to be funded by a combination
of debt and equity.
BOTSWANA IPP PROJECT 37 Energy & Natural Resource Corporation
The Projects are expected to have a similar project economics and the following table provides an
indication of the anticipated sources and uses:
Sources & Uses ZAR
Sources R'000
Debt 20 300
Senior debt facilities 20 300
Equity 5 100
Equity Share Capital 5 100
Total 25 400
Uses
Construction costs 17 550
Development and owners’ costs 450
Financing costs and other provisions 7 400
Total 25 400
Source: Sponsors assumptions
Table 15 Sources and uses
6.3 Key Assumptions
6.3.1 Construction Period
The expected period for each Project to reach construction completion is as follows:
Project Name Construction Period (Months)
Unit 1 42
Unit 2 42
Table 16 Construction Period
6.3.2 Operating Assumptions
Coal consumption and cost:
Based on a plant gross heat rate between 21,630 kJ / kWh and 26,850 kJ / kWh respectively gross heat
value of coal between 21,630 kJ / kg and 26,850 kJ / kg, the annual coal consumption for the Project is
expected to be between 2.31 / million tons when both 300 MWel respectively 1.15 / million tons when
both 150 MWel units are operating based on low gross heat value of 21,630 kJ / kWh and 7,120
operating hours (according table 2.7).
Real landed price of coal is estimated to be less than US$ 15 per ton and comprises of the coal price at
mine mouth and transportation cost by a conveyor system.
BOTSWANA IPP PROJECT 38 Energy & Natural Resource Corporation
Diesel:
Diesel is consumed during start-up operations. The assumed demand is 2 litres per MWh, the fuel price
US$ 0.85 per litre.
Quicklime:
Quicklime is used for desulphurization. The demand is approximately 1.350 /2.700 t/d at an average
sulphur content of 1.5 %. The estimated price is US$ 173 per ton.
Water:
The water-steam-cycle and other processes require water. The water demand, which will be supplied
by wells, is 59 respectively 119 m³/h. The estimated price is US$ 5 per m³.
Fixed operating costs:
Fixed operating costs comprise of:
• consumables,
• spares and others and
• staff salaries, housing and travelling.
Consumables:
Consumables include water treatment chemicals like hypochlorite, sodium chloride, anti-scaling agent,
ammonia, hydrazine, hydrochloric acid, sodium hydroxide and lime. Consumables cost is assumed to
be annually escalated by 0.5.
Spares and others:
Spares and others consist of consumables with an estimated cost of US$17,000 per MW and spare
parts with an estimated cost of 3% of basic investment cost.
Staff salaries:
Staff salaries have been derived based on the number of employees and man-month rates, which in-
clude all additional expenses, contingencies, margins and back-office services:
Table 17 Staff salaries
BOTSWANA IPP PROJECT 39 Energy & Natural Resource Corporation
6.3.3 Financing Assumptions
Senior facility
The financing assumptions for the senior facility reflect the facility size set out in [source] above. For
illustrative purposes, the assumptions for the senior facility are set out in the table below.
Facility details Facility
Senior debt tenor (post COD) Years TBD
Debt service months – interest and capital
payment every [x] months Months 6
Interest and capital grace period Months 6 (not used)
Interest Rates
Base rate % 3 month JIBAR
All-in margins over base rate
During construction % TBD%
During operations % TBD%
[Source: Financial Model]
Table 18 Financing assumptions
6.3.4 PPA
The PPA governs the basis on which power will be sold by the Project Company as Seller to Eskom as
Buyer.
The PPA establishes the obligations of the Project Company in relation to commissioning and testing,
connection to the system, the appointment of an independent engineer, the independent engineer's
inspection and testing, the Project's completion and commissioning, the provisional unit commercial
operation date, the commercial operation date, the last commercial operation date, consequences of
a reduction in contracted capacity, coordination of connection with the NTC, dispatch arrangements,
metering and outages.
Provided that the Project Company has achieved commercial operations before the longstop date
under the PPA, the Project Company shall be paid a combination of Net Dependable Capacity
Payments, Commercial Energy Payments, Startup Payments and the reimbursement of use of system
charges for energy dispatched by the Project to the System.
6.3.5 Implementation Agreement
Under the Implementation Agreement the DOE guarantees Eskom's payment obligations under the
PPA. The Implementation Agreement also establishes the Project Company's Economic Development
Obligations in relation to the Project.
BOTSWANA IPP PROJECT 40 Energy & Natural Resource Corporation
6.3.6 Transmission Agreement
This agreement sets out the terms and conditions upon which the Project Company shall undertake
the transmission connection works to physically connect the Project to the Transmission System and
establishes the basis for the parties to cooperate with each other in relation to the operational
interface between the Project and the Transmission System. The agreement permits the Project
Company to use the Transmission System for an initial connection charge and an ongoing use-of-
system charge. The use-of-system charge is refunded under the PPA.
6.3.7 Ancillary Services Agreement
To be entered into between the Project Company and Eskom.
6.3.8 Limestone Supply Agreement
To be entered into between the Project Company and the Limestone Supply Company to be confirmed.
6.3.9 Offtake agreement
The Project is governed by a 30-year PPA with Eskom. The SA government will provide a government
guarantee for Eskom’s payment obligations as well as a guarantee for a termination payment in respect
of government default. Buyer default termination payment will cover all outstanding payments under
the finance agreements, including hedge break costs. Equity compensation will restore shareholder
IRR to the base case equity IRR prior to termination. Contractor and Supplier costs will also be covered.
The PPA is for a coal base-load facility with a guaranteed minimum load factor of 85% of the declared
dispatchable energy. The IPP is partially compensated on an annual basis should it be dispatched at
less than this 85% load factor. Given the present shortage of generation capacity, and given the
expectation that generation units will be dispatched on a price-based merit system, it is assumed that
the power plant will run at a load factor of 90% throughout the term of the PPA.
6.3.10 Insurance Programme
The Project Company, EPC and O&M contractor will enter into and maintain the appropriate
insurances, in accordance with the requirements of the RFP documents, and subject to availability on
commercially reasonable terms.
6.3.11 Key dates and Schedule
The bid submission date is scheduled to be determined once the DOE release the updated IRP expected
in March 2018.This will be communicated in due course by DOE through a briefing note. The current
timeline is presented in the table below:
BOTSWANA IPP PROJECT 41 Energy & Natural Resource Corporation
Milestone Date
RfP launched to Pre-Qualified bidders TBD
Last date for Bidders to submit written questions in
terms of clause 33 (Time for requests and clarifica-
tions) of this Part A (General Requirements, Rules and
Provisions)
TBD
Bid Submission Notification Date TBD
Bid Submission Date TBD
Announcement of Preferred Bidder TBD
Preferred Bidders to provide signed PB PD Undertak-
ings to the Department TBD
Commercial Close and Financial Close TBD
Scheduled COD TBD
Table 19 Key dates
BOTSWANA IPP PROJECT 42 Energy & Natural Resource Corporation
7 Accounting and Tax
The accounting and tax assumptions are as follows:
Variable Unit Value
VAT rate % 14.0%
Corporate tax rate % 15.0%
Tax holiday Years -
Dividend Withholding Tax (DWT) % 0.0%
[Source: Financial Model]
Table 20 Accounting and tax assumptions
7.1 Results: Base Case
The relevant financing results from the Base Case models are shown below.
Debt Cover Ratios
DSCR - Senior Debt
Min TBD
Average TBD
[Source: Financial Model]
Table 21 Cover ratios
BOTSWANA IPP PROJECT 43 Energy & Natural Resource Corporation
8 Financing Opportunity
8.1 Quality of the Sponsor
• Involvement of reference shareholder ENRC:
Coal energy expertise and strong commitment to coal
Expertise in structuring and closing project financings
• The Sponsor has completed successful projects as EPC providers
In addition to the Projects detailed in this PIM, the Sponsor has other projects in the pipeline that
they expect to bring to market.
8.2 Project Development Skills
The Sponsor has strong project development skills, with a solid track record of successful projects. The
Local developer will continue its involvement in the Projects in so far as Permitting and Authorisations
and other development components for Financial close are concerned.
8.3 Commercial Risk Structure of the Projects
The Projects have been structured to mitigate key risks:
• Construction risk will be managed by use of a fully wrapped, fixed price, turnkey and lump sum
EPC contract that provides for liquidated damages (time and performance) and other terms and
conditions suitable to financiers. A Market leading EPC contractor will be contracted to
undertake this role; and
• In addition the EPC contractor will provide the key O&M services under a long term
arrangement.
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