RE: Capital value......29 May 2024 10:10
The veracity of the statement about BPC payments, if true , is likely to be based on foreign countries experience.
South Africa for many years, but with Eskom is no longer the force it was - there are now others.
Eskom could not supply S.A. demand , and only exported to Botswana because they were prepared to pay more , a few carrots more? Eskom took the carrot!
We think BPC are paying up to $30 for the TG unit of power, and it may have reached $40 from a post on here.
I have little doubt that BPC was being ripped off by the supply and demand curve.
Contrast the position we hope to see this year!
TLOU , domestically placed in Botswana , supported by the locals who'll want the jobs they create, and the Govt for various reasons that improve their economy, businesses , and living conditions for the population in general.
Critically , TG has promised to undercut import prices whilst still making more profit than the same electricity would earn in Australia - originally somewhere in the range $12 to $30 per unit - you'd think both will be more now.
The goodwill is clearly likely to be mutual and BPC and Govt will not want to see TLOU struggle to expand until Botswana is self-sufficient on electricity. And if TLOU are compromised there is always the option to deal with SAPP network at a higher price no doubt.
Botswana is proud of its reputation abroad - many countries rate them highly against other African countries.
TG rated them highly in the first place. Current criticism of the Govt is unfair - everybody with an interest in TLOU know we have not reached a start point until the TX line is commissioned and electricity is being delivered to Serowe and the grid.
They are leaving it to TG bring that home in 2024 with respect! Once TG can demonstrate a live service, it will not surprise me if the Govt find money for Grants or Loans to TLOU to speed up the expansions. Until then , we all sit with crossed fingers that TG is still TG from ten years ago! Olda and wiser is my belief!
And , heaven forbid, news of earnings might attract the big boys to look at Botswana and our golden nuggets!
8p is likely by Xmas if TG meets the estimated times. If Serowe is connected to Orapa (don't think it is) the sponsorship from industry on the Botswana grid could follow. 2025 could be interesting - but lets get power to Serowe by Xmas first!