Standard Bank and ICBC have been mandated to finance the expansion of the Morupule B Power Station, near Palapye in eastern Botswana. The $1.6bn coal-fired Morupule B Power Station project is a major Botswana government initiative, driven by the Botswana Power Corporation (BPC), aimed at boosting the country's power generation capacity. It comes in the wake of Eskom switching off its power to Botswana to supply growing domestic demand in South Africa.
As part of this contract, the China National Electric Equipment Corporation (CNEEC), which is one of Industrial and Commercial Bank of China's (ICBC) top corporate clients, has been awarded a $970m a contract to supply and build a significant portion of the power plant. This is the first major transaction involving Standard Bank and ICBC, which has a 20% stake in Standard Bank.
Standard Bank and ICBC are arranging a $825m loan for 20 years. A $140m bridge finance facility will also be provided. The Morupule B Power Station project involves the installation of 4x150 MW coal-fired air-cooled units. Associated projects include water supply works and the construction of transmission lines and substations for the distribution of power to the rest of the BPC grid.
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