Message Jeu 28 Juil 2011 00:25

Coal mine seeks ERB consent on power deal

Thursday, July 28, 2011

By MARTIN NKOLOMBA

MAAMBA Collieries Limited (MCL) has submitted a power purchase agreement to the Energy Regulation Board (ERB) for regulatory consent to sell about 300 megawatts of electricity to Zesco Limited from its upcoming coal-powered generation plant.

According to the power purchase agreement, MCL intends to design, finance, build, commission, own, operate and maintain a coal-powered generation plant with a capacity of 300 megawatts (mw) at a cost of US$700 million.

This is contained in a statement issued on yesterday by ERB communications officer Kwali Mfuni.

She said under the proposed agreement, Zesco is expected to undertake the design, engineering and construction of the interconnection facilities for the transmission of power in line with the development and connection agreement between the two entities.

Ms Mfuni said in phase one, the power plant will be able to generate 300mw, and double that capacity under phase two of its development.

She said construction of phase one will soon begin.

"While phase one is set to start soon, phase two will only commence when an off-taker for the additional power to be generated has been identified," she said.

Ms Mfuni said MCL is seeking regulatory consent as a pre-requisite for securing financing for the project.

The project is expected to be completed in 36 months after the contractor moves on site. A contractor is being identified by the coal firm.

Meanwhile, Ms Mfuni said the board has received another power purchase agreement from Zesco for the selling of power to Botswana Power Corporation (BPC).

She said the power Zesco will sell to BPC is for supplying Kasane, one of Botswana’s border areas.

Ms Mfuni said under the proposed agreement, Zesco is proposing to sell up to 10MVA on firm basis at a voltage of 66 kilovolts for a period of five years.

She said a joint technical committee comprising Zesco and BPC representatives will be established to address the technical and operational issues of the power purchase agreement between the two utilities.

Ms Mfuni said ERB is reviewing the two agreements.