Statement to Parliament on Power Outages For the past 6 years, Botswana has been subjected to regular disruptions in power supply that have varied in terms of intensity over the years. In the recent past, the power disruptions have been on an extreme scale with periods of load shedding extending to the whole working day in some places. The country is engulfed by total darkness, notwithstanding assurances from Ministers and the President. We are in the current crisis primarily on account of the ruling party’s lack of vision. In 1994/95, internally generated electricity by Botswana Power Corporation accounted for 75% of the total requirements and only 25% was sourced from imports. The BDP government then decided to place higher reliance on imported power as opposed to expanding internal capacity to generate power. As was stated in a statement to parliament by the then minister of Minerals Energy and Water Resources on 14 February 2008, it was decided in 1997 “That the Corporation imports all future additional load requirements over the planning period (to 2007), provided the imports remain at a lower cost than internal generation.” It was possibly with this in mind that internal capacity was not only ignored but also crippled as demonstrated by the closure of Selibe Phikwe BPC power generating plant. This has led to the current situation where the country depends on imported power in excess of 70% of the total demand. We contend as the BCP, that even with the misfortune of having chosen a short-sighted strategy for power provision, the leadership should have anticipated the impending crisis and planned to avert it well in time. The writing was on the wall in 2008 when the new power provision agreement was signed with Eskom, as the agreement stipulated that Botswana will be provided with 350MW in 2008 and 2009, reducing to 250MW in 2010 and 150MW in 2011/12. To imagine that in 2014 we are still predominantly reliant on Eskom and have mismanaged the Morupule B power plant to a point where we are unable to commit to any completion date, 2 years after the original completion date is scandalous. There are a number of promises that have been made in the past each time power shortages spiralled out of control, most of which have not been fulfilled or are simply being pursued in a lazier fair manner that is not reflective of the enormity of the crisis we face. Such promises include the following: 1. In the 14 February 2008 statement to Parliament, the then Minister responsible for Energy announced that they were planning to implement a pilot project to operate Bulawayo Power Station using coal from Morupule Colliery. BPC was to provide coal for the plant and in return get 50% of its output. There has been no further update on this project and no power has ever been reported as being received from the Bulawayo Power station. 2. We were also told in the same statement that government was considering an offer of second hand Open Cycle Gas Turbine of 3 X 60MW at a cost of P 425 million for immediate delivery. No further information has been availed on this offer, suggesting that this was a statement aimed at giving an impression that there were actions being taken to secure additional power and quell the public anxiety when nothing was actually taking place. 3. Still in the same statement, we were told of plans for an Independent Power Producer. It was stated that “Tender evaluation process for bids received under the Corporation’s call for Expressions of Interest in relation to a 250MW IPP power plant. The power plant is intended to operate during the periods when supply is required to augment base-load consumption. From an initial list of 33 bids, the Corporation has compiled a short list of 6 companies who have been invited to make presentations on 4th and 5th February 2008. The target is to have the facility operational by the end of 2009.” This announcement undertook an impressive 22 months turnaround time from the announcement date for a facility that was to provide 250MW to the national grid, an announcement that was most welcome. It has now been 70 months since the announcement was made. Subsequent announcements on the project depict a government on slow motion when it comes to addressing the problem of power shortage. Updates on the project have been as follows; • Paragraph 44 of the 2009 Committee of Supply Speech announced that a tender was awarded to Karoo Sustainable energy in July 2008 and the nation can expect the plant to provide 250MW by the end of 2010, not 2009 as previously stated. • Paragraph 43 of the 2010 Committee of Supply Speech stated that “a 250MW gas (coal bed methane ) fire powered station is to be developed by an Independent Power Producer called Karoo Sustainable Energy who was awarded a tender in July 2008 to undertake this investment.” This time around, the Minister made no reference to any completion date for the project. • Paragraph 19 of the 2011 Committee of Supply Statement stated as follows, “To ensure secure and sustainable sources of power supplies in the medium and long term, a 180 MW gas fired power station is to be developed by an Independent Power Producer called Karoo Sustainable Energy.” Once more, no completion date is given, even though the project was already 2 years late in terms of the initial stated completion date of 2009. The only update that is given is that the Ministry has now realised that it has limited understanding of the project and will be looking to employ an expert in 2011 to help the Ministry better understand the challenges faced in the extraction of coal bed methane. • At paragraph 12 of the 2012 Committee of Supply Speech the Minister reported as follows; “The government is committed to ensuring that IPPs play a significant role in contributing to the country’s power requirements. In this regard, in an effort to develop a low carbon energy portfolio in the medium and long term, a 180 MW gas fired power station is still expected to be developed by an Independent Power Producer, Karoo Sustainable Energy.” Once more, no completion date was given and the Minister was then promoted for his hard work to become the Vice President of the Republic. 4. The audit trail of the Independent Power Producers is replicated in the case of the 200MW Solar Thermal Station that was first reported in 2008. In 2009 the Minister announced that the pre-feasibility study on the project had been completed and the project would be fast-tracked so as to address the power deficits expected in 2010. We are now in 2014 and the project has not taken off. Mister Speaker, due to the limited time allowed for this statement, I do not wish to give a detailed chronology of false assurances that have been made to the nation on the Morupule B project and the 200MW Solar Thermal Station. We are all aware of the statement made by His Excellency the President that load shedding will be a thing of the past by the end of July 2013. The President has not come forward to explain to the nation why the false assurance was made, save for flimsy explanations that machines are by nature not reliable. We all deal with machines on a daily basis and we know that there are reasonable limitations pertaining to any machines reliability to perform to expectations. Permanent machine failure on an investment of P 11 billion cannot be condoned. On behalf of the official opposition, I call on the President to do the following; • Address the National Assembly on the current power crisis and open up a debate on a possible short to medium term plan that can allow for resources to be diverted from some of the approved projects, if this is deemed necessary, to respond to the crisis. • Avail resources to respond to the ongoing crisis and facilitate for companies with access to big diesel generators to participate in minimising power disruptions for the business community as was promised in 2010. • Take steps to fast track the implementation of the Solar Thermal Stations to take advantage of our abundant solar energy. • Avail additional funds for the BPC Lesedi Project and subsidise households that wish to convert to solar energy so as to reduce pressure on the national grid. • Institute an immediate audit into the Morupule B project to establish the reasons behind the inordinate delays for the completion of the project and also ascertain whether or not advice had been given, warning against the contracting of the company that was ultimately engaged for the project. Too many false promises have been made, the President needs to step forward and provide leadership. The economy is collapsing; the tempest is raging while the master sleeps. There is need for urgent action, the current leadership vacuum is killing the country. Dumelang Saleshando President of BCP
Posted on: Fri, 14 Mar 2014 07:39:46 +0000
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