RE: News23 Mar 2021 13:45
All good points OB. Also know that Sekaname have been in Botswana since the early 2000’s, and previously held the Lesedi licences that Tlou have been drilling since 2009.
While many will post their views on who will win what in the current 100mw PPA negotiations, I prefer to wait and see what the outcome is. I do expect both to get an award of some sort; I then expect them to use that to secure project finance so they can deliver on their contract.
Others will tell you Tlou is the only player that can deliver CBM here. Again, time will tell .... and in any event all that chat is irrelevant noise. With their contracts, the onus falls on each of them to deliver electricity. With ALSF leading the PPA negotiations, I fully expect a robust and thoroughly professional process to be followed here. They are the legal arm of African Development Bank, who have ‘been there, seen that and done that’ sort of thing repeatedly across power projects throughout Africa. If Tlou or Sekaname project plan is not fit for purpose, I expect that will be found out prior to PPA contracts are awarded.
My hope in the PPA process is that it shines a light on the possibility that CBM can be used to fuel the Orapa 90MW plant, since doing that would demonstrate the proof of concept many in Botswana circles seem to doubt. The downstream infrastructure that is needed is already in place and can be converted at a cost significantly below building new power plants. But there has been little intelligent logic displayed in Botswana circles since the 100mw tender was first issued in early 2017, so I doubt that will change any time soon.
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