Botswana PIM - October 2019 · 2019. 12. 8. · PIM This Project Information Memorandum PPA Power Purchase Agreement . BOTSWANA IPP PROJECT 2 Energy & Natural Resource Corporation

BOTSWANA IPP PROJECT i Energy & Natural Resource Corporation

CONFIDENTIAL

Energy & Natural Resource Corporation

(Botswana)

PROJECT INFORMATION MEMORANDUM

FOR A 600MW

INDEPENDENT POWER PLANT

AT MORUPULE

(PALAPYE)

BOTSWANA

OCTOBER 2019

BOTSWANA IPP PROJECT ii Energy & Natural Resource Corporation

CONTACT DETAILS

If you have any questions regarding the information, or any questions relating to the contents of this

document, please contact the project sponsors and they will refer you to the relevant party:

Sponsor / Developer: Energy & Natural Resource Corporation (Botswana) (Pty) Ltd

Lionel Koster

Executive Director

Email: [email protected]

Tel: +27 83 265 7755

Development Advisors: Atlantic Energy Partners

Anthony de Graaf

Executive Director


Tel: +27 21 418 2596

Craig Stanley

Executive Director


Tel: +27 21 418 2596

BOTSWANA IPP PROJECT iii Energy & Natural Resource Corporation

Financial Advisors: Waterborne Capital

Brett Gavin Levick

Managing Director


Tel: 021 657 3811

Legal Advisors: Norton Rose Fulbright

Jackie Midlane

Director

Email:

[email protected]

Tel +27 11 685 8678

Fax +27 11 301 3305

Transmission Network Advisors: Power Network Optimization

Machiel Coetzee

Director


Tel +27 11 394 4220

Fax +27 86 637 4234

Technical Advisors: UNIPER

Mr Harald Schaaf

CEO


Tel +27 21 200 5980

www.uniper.energy

BOTSWANA IPP PROJECT iv Energy & Natural Resource Corporation

TABLE OF CONTENTS

Page

1. Definitions and Glossary ...................................................................................................... 1

2. Executive Summary ............................................................................................................. 3

2.1. Projects Overview ................................................................................................................ 3

2.2. Construction ........................................................................................................................ 6

2.3. Status of Consents and Approvals ....................................................................................... 6

2.4. Financing .............................................................................................................................. 8

2.5. Proposed Project Timeline ................................................................................................... 8

2.6. Financing Opportunity ......................................................................................................... 9

2.7. Main Fuel: Coal .................................................................................................................... 9

2.7.1 Coal Source ......................................................................................................................... 9

2.7.2 Quality ................................................................................................................................ 9

2.7.3 Coal handling and storage ................................................................................................. 11

2.8. Lime Handling .................................................................................................................... 11

2.9. Ash ..................................................................................................................................... 11

2.10. Start-up Fuel ...................................................................................................................... 12

2.11. Water use ........................................................................................................................... 12

2.12. Insurance ........................................................................................................................... 13

3. Key Project Parties ............................................................................................................ 14

3.1. Sponsors:............................................................................................................................ 14

3.1.1 Energy & Natural Resource Corporation (Botswana) (Pty) Ltd ......................................... 14

3.1.1.1 Introduction ............................................................................................................. 14

3.1.1.2 ENRC capabilities and team ...................................................................................... 14

3.1.2 Atlantic Energy Partners .................................................................................................... 14

3.1.2.1 Introduction ............................................................................................................. 14

3.1.2.2 AEP capabilities and team ......................................................................................... 14

3.2 Strategic Equity Partner ..................................................................................................... 15

3.3 Coal Supplier ...................................................................................................................... 15

3.4 EPC and O&M Contractor .................................................................................................. 15

3.5 Sponsor’s Advisors ............................................................................................................. 16

4 Project Description ............................................................................................................ 18

4.1 Site and Project Assessment .............................................................................................. 18

4.2 Site Infrastructure .............................................................................................................. 21

4.3 Road design, Landscaping .................................................................................................. 22

4.4 Site infrastructure .............................................................................................................. 23

4.5 Planning Approvals and Processes .................................................................................... 24

4.6 Environmental Impact Assessment ................................................................................... 24

4.7 Grid Application ................................................................................................................. 26

4.8 Heritage ............................................................................................................................. 31

4.9 Proposed Project Timeline ................................................................................................. 31

5 Project Structure ............................................................................................................... 31

5.1 Project Ownership ............................................................................................................. 32

5.2 Project Contractual Agreements ....................................................................................... 32

6 Project Economics ............................................................................................................. 36

6.1 Overview ............................................................................................................................ 36

6.2 Sources and Uses of Funds ................................................................................................ 36

6.3 Key Assumptions ................................................................................................................ 37

7 Accounting and Tax ........................................................................................................... 42

7.1 Results: Base Case .............................................................................................................. 42

8 Financing Opportunity ....................................................................................................... 43

BOTSWANA IPP PROJECT v Energy & Natural Resource Corporation

8.1 Quality of the Sponsor ....................................................................................................... 43

8.2 Project Development Skills ................................................................................................ 43

8.3 Commercial Risk Structure of the Projects ........................................................................ 43

LIST OF TABLES

Table 1 Plant Summary ..................................................................................................................... 6

Table 2 Consents required ................................................................................................................ 7

Table 3 Consents required for bidding ............................................................................................. 7

Table 4 Applications required........................................................................................................... 8

Table 5 Project timeline ................................................................................................................... 9

Table 6 Coal quality range planned for new power plant given by ENRC. (Analyse Certificate /

Test Report from 28/06/2013). ............................................................................................................. 10

Table 7 Flue gas emission limits according to World Bank standards Dec. 2008 and assumption

for this study. ......................................................................................................................................... 11

Table 8 Site assessment result summary ....................................................................................... 18

Table 9 Assumption of general connections to existing, local public systems and infrastructure 23

Table 10 Consents required .............................................................................................................. 24

Table 11 Project timeline .................................................................................................................. 31

Table 12 ................................................................................................................................................. 31

Table 13 EPC contract summary ....................................................................................................... 33

Table 14 Type of debt facilities ......................................................................................................... 36

Table 15 Sources and uses ................................................................................................................ 37

Table 16 Construction Period ........................................................................................................... 37

Table 17 Staff salaries ....................................................................................................................... 38

Table 18 Financing assumptions ....................................................................................................... 39

Table 19 Key dates ............................................................................................................................ 41

Table 20 Accounting and tax assumptions ....................................................................................... 42

Table 21 Cover ratios ........................................................................................................................ 42

LIST OF FIGURES

Figure 1: Project Structure ...................................................................................................................... 4

Figure 2: Map of ENRC IPP site .............................................................................................................. 19

Figure 3: Map and layout of the Morupule Coal Mine .......................................................................... 19

Figure 4: 600 MW System Healthy ........................................................................................................ 28

Figure 5: 600 MW with MorupuleB-Phokoje out of service.................................................................. 28

Figure 6: 600 MW with Phokoje-Medupi out of service ....................................................................... 29

Figure 7: 600 MW with MorupuleB-Isang out of service ...................................................................... 29

Figure 8: 600 MW with Isang-Watershed out of service ....................................................................... 30

Figure 9: 600 MW with Morupule transformer out of service .............................................................. 30

Figure 10: Project Ownership Structure ................................................................................................ 32

Figure 11: Project Contracts .................................................................................................................. 32

BOTSWANA IPP PROJECT 1 Energy & Natural Resource Corporation

1. Definitions and Glossary

Unless otherwise provided herein, the definitions set out below apply throughout this Project

Information Memorandum.

AEP Atlantic Renewable Energy Partners (Pty) Ltd or any of its affiliates and/or

nominees

BBBEE Broad Based Black Economic Empowerment

BEE Black Economic Empowerment

ENRC Energy & Natural Resource Corporation (Botswana) (Pty) Ltd or any of its

affiliates and/or nominees

COD Commercial Operation Date

DEA Department of Environmental Affairs

Developers ENRC & AEP

DOE Department of Energy

DSCR Debt Service Cover Ratio

DWT Dividend Withholding Tax

EIA Environmental Impact Assessment

EPC Engineering, Procurement and Construction

IPP Independent Power Producer

JSE Johannesburg Stock Exchange

LLCR Loan Life Cover Ratio

MLA Mandated Lead Arranger

MOU Memorandum of Understanding

MW Megawatt: 1,000kW

MWh Megawatt-hours

O&M Operations and Maintenance

PIM This Project Information Memorandum

PPA Power Purchase Agreement


Projects The development, financing, construction and operation of a 600MWe

gross (2x 300MW gross units) mine-mouth Coal Fired Power plants,

located in Morupule which is part of the Federal Republic of Botswana.

RFP Request for Proposals

ROD Record of Decision

Sponsor The developers and the prospective equity partners

SPV Special Purpose Vehicle

VAT Value Added Tax


2. Executive Summary

Energy & Natural Resource Corporation (Botswana) (Pty) Ltd (“ENRC”) (“Sponsor”) and Atlantic Energy

Partners (“AEP”) (Development Advisors), acting as project sponsors (the “Sponsors”), have identified

an opportunity to develop 4 x 150MW mine-mouth coal fired power plants near the Morupule coal

mine north of Gaborone in Botswana, (individually a “Project” and collectively the “Projects”).

ENRC is a Republic of Botswana based Energy Company which is focused on the introduction, design,

construction and operation of independent power plants within the Republic of Botswana.

The ENRC management team have been involved in the international energy and resource sector for

decades and have focused on Botswana as having the potential to become the foremost energy

exporter in Africa due to the unique and fundamental characteristics of the country, its strategic

position and the abundance of an untapped natural fuel source (coal).

AEP was incorporated with the vision of providing the renewable energy sector with a full turnkey

service provider of excellence and have been relatively successful in these endeavours within the South

African REIPPP programme AEP is now employing it’s successful development strategy in the rest of

Africa and across the wider energy sector including thermal coal.

The Sponsors are in the process of securing non-recourse project financing for the Projects and this

Project Information Memorandum (“PIM”) is intended to serve as an initial guide on general

information about the proposed project.

2.1. Projects Overview

ENRC was established on 20th November 2013 with a clear mandate to investigate and perfect a model

for an independent power station in the Republic of Botswana to supply power to South Africa and

other SAPP countries. On the 24th July 2014 , ENRC registered the “Projects” with the South African

Department of Energy – Coal IPP Programme (Cross Border).

(Annexures 1.1 and 1.2)

ENRC immediately entered into and NDA with the Botswana Power Corporation (“BPC”) and a

Confidentiality Agreement with Southern African Power Pool (“SAPP”) in order to study the existing

power grids and investigate solutions to wheel electricity south to South Africa and North to the SAPP.

(Annexures 2 and 3)

ENRC also immediately engaged the Department of Energy in South Africa and the then Ministry of

Minerals , Energy and Water Resources in Botswana. Presentation was made in both South Africa and

Botswana to the Department and Ministry officials and respective Government Ministers.

(Annexures 4.1 , 4.2 and 5)

In response to the need for additional electricity supply to the national grid, and the goal of the

Government of South Africa to procure electricity from Independent Power Producers (IPPs), as

detailed in the IRP 2010 and in response to the Section 34(1) “Determination” issued by the Minister

of Energy on 20 April 2016 for 3750 megawatts of coal cross border energy.

(Annexure 6)


ENRC is presently in negotiations to enter into a cross border agreement with the South African

Department of Energy (DoE) to supply 600MW (Phased) of energy to South Africa.

In terms of the Government Gazette – Integrated Resource Plan 2019 issued on 18th October 2019 ,

the South African government has provided for 1,000 MW of additional coal generation capacity for

2023 and 2024 which can be sourced locally or in terms of Cross-border IPP’s.

(Annexure 34)

The Project Company has been set up to develop the Projects. It is anticipated that the shareholders

of these Projects will include ENRC, a potential Strategic equity partner and Atlantic Energy Partners.

The final shareholding and debt funding structures are still under discussion.

An example in the possible split of ownership in the Project companies and debt funding are depicted

in the following diagram:

Figure 1: Project Structure


O&M Contractor

The O&M contractor will most likely initially be the selected EPC contractor, overseen by the owner’s

technical engineer (UNIPER). STEAG completed the pre-feasibility study. Currently Uniper is being

engaged to complete the feasibility study.

EPC Contractor:

The EPC contractor is still to be confirmed. The Sponsor will run an extensive and thorough process to

participate in coal fired power plant projects from which the EPC contractor will be selected.

Primary Fuel Supply:

The project has entered into a Memorandum of Understanding (“MoU”) with Morupule Coal Mine as

the primary fuel supplier and the MoU has been extended to allow finalization in terms of the PPA

agreement to be signed with the Dept. Energy of South Africa.

(Annexure 11)

The key features of the power station are as follows:

Unit gross electrical output: 600 MW (divided into two (2) phases)

Number of boiler(s): Four (4) 150MW

Number of Steam Turbine: Generator(s) Two (2) 300MW STG

Number of Blocks: 2 blocks each consisting: 2 x 1500MW boilers + 1

x 300MW STG per unit

Long-term unit capability loss factor (UCLF =

1 - Availability):

The long-term average loss of station net

electrical output to the grid (per unit including

portion of the total station parasitic load

attributed to the unit), will be no more than 10 %

of unit ECR (see below)

Unit economic continuous rating (ECR):

The unit will sustain the design station net

electrical output, under design main steam

pressure and temperature conditions and feed

water temperature conditions and with governor

valve wide-open.

Unit ECR shall correspond to unit nominal

(design) MCR.

Boiler maximum continuous rating (BMCR): 100% BMCR shall be no less than 105% TMCR.

Turbine maximum continuous rating (TMCR):

100%TMCR shall correspond to unit 100% ECR,

and shall correspond to governor valve wide open

operation under design feed water temperature

conditions.

Unit minimum continuous load with and

without light fuel oil support

The unit shall be capable of a continuous load of

40% MCR, sustained indefinitely without support

firing.


Load Profile: The plant will be operated in accordance with a

base load operating regime.

Frequency of Electricity Generation: 50 Hz

Main Fuel: Thermal Coal (Bituminous Coal)

Start-up fuel: Diesel Fuel oil Condenser cooling: Air Cooled Condenser

Operating life of Plant: 30 years Table 1 Plant Summary

2.2. Construction

The first unit is envisaged to have a construction timeline of 42 months. Construction of the second

unit will be started 3 months after unit 1 and will have a timeline of 42 months. The total timeline for

both unit 1 and 2 will be 45 months. The project is assumed to have an operating period of 30 years.

The total project cost is expected to be ZAR25bn. Based on a gearing of 75:25 the project requires

ZAR19bn debt and ZAR6bn equity.

2.3. Status of Consents and Approvals

The status of consents and approvals required for bidding is as follows:

Consents Required for bidding:

• Environmental Authorisation

In Progress

Ecosurv Environmental Consultants where appointed on

01 July 2016 to proceed with the ESIA

and the Department of Environmental Affairs (Botswana)

has approved the Scoping Report.

(Annexure 27)

• Inter Government Cross Border

Agreements

Approved

(Annexure 7 and 12)

• Heritage approvals

Approved

Land Board of Botswana

(Annexure 30)

• Waste Management License In Progress

• Civil Aviation Authority (CAA)* To be obtained

• Atmospheric emission license

To be obtained

Study currently being done by Airshed in conjunction

with various Botswana Government Departments

• Transmission Integration Study Approved by BPC

(Annexure 24)

• Water Allocation In Progress


Application for allocation from NSWC 2

MoU with Water Affairs in terms of Palapye WWTP

(Annexure 31.1 , 31.2 and 32)

• Mineral rights

Approved

MCM has a full Mining License

(Annexures 21 and 22)

• Land Acquisition

Approved

Palapye Land Board

(Annexures 16 – 20)

• BOSA Interconnector In Progress

(Annexure 33)

• Zoning In Progress

Application in process with Land Board of Botswana

• Government Support and

Communication

Communication on Project between Ministers

(Annexures 4 , 8 , 10 and 23)

Table 2 Consents required

The Project is at an early stage of development and, where applicable, applications for the necessary

permits are either underway or already approved. Certain authorizations required for the Project roll-

out such as: the MMEWR generation license from the Ministry of Minerals, Energy and Water

Resources (Botswana) has been applied for, but will only be secured during the licensing process.

(Annexure 9)

A summary of the permits and authorizations required at the bid submission date is listed below:


Environmental Authorisation

In Progress

Ecosurv Environmental Consultants where ap-

pointed on 01 July 2016 to proceed with the ESIA

and the Department of Environmental Affairs

(Botswana)has approved the Scoping Report

Written allocation of water allocation

and fully integrated water use licence

application

In Progress



Waste Management License To be obtained

Inter Government Cross Border Agree-

ments

Approved

Table 3 Consents required for bidding

Applications Required for bidding:


Mineral Rights Application Approved

MCM has a full Mining License

Rezoning Application Application in process with Land Board of

Botswana

Atmospheric emission license applica-

tion

To be submitted

Water Use License In Progress



Heritage approvals Approved

CAA Application To be submitted

Table 4 Applications required

2.4. Financing

The Sponsor will engage a limited number of potential lenders to secure the most competitive terms

for:

• Senior, non-recourse project finance facility;

• Subordinated facilities;

• Senior inflation-linked debt facility;

• A VAT facility;

• Value-adding BEE financing;

• A bid bond issue; and

• Such commitments from the lenders as may be required.

The Sponsor will seek to engage with Potential Investors to secure:

• The most competitive tariff

• Bid Compliancy; and

• Such commitments from potential Investors that may be required.

The composition of the equity investors will be decided upon by

• the Sponsor based on the level of interest and

• Key financial criteria.

2.5. Proposed Project Timeline

It is anticipated that the Projects will follow the estimated timeline below:


Milestone Project

Project development phase 12 months

Project implementation phase 30 – 36 months

COD FC + 45 months

Table 5 Project timeline

2.6. Financing Opportunity

The Projects present a unique opportunity for Investors given:

• The involvement of experienced project Sponsors (ENRC and AEP);

• The high likelihood that this project will be awarded a PPA due to the energy

shortage in SA;

• The successful development track record the project sponsor (AEP)

• The proximity of the proposed site to the mine and the abundance of the coal

resource in the area; and

• The Sponsor has more projects in the pipeline that they will be bringing to market.

2.7. Main Fuel: Coal

2.7.1 Coal Source

The main fuel for the planned thermal power plant in Botswana will be local mine-mouth bituminous

coal of the Morupule mine. The specifications of the main fuel are on the basis of the data, reported

by Advanced Coal Technology Laboratory with Ref.-No. 1314-744 dated from 28/06/2013.

2.7.2 Quality

It is necessary to consider the marked values of the coal in Table 5 as a worst case scenario for the

calculation of the coal stockyard, ash storage and lime storage. Different analysis results are showing

a wide range in heat capacity, in the content of ash and particularly on sulphur with 3.18 ad-% as worst

case. It is required to perform additional analysis in order to evaluate coal analysis structured according

to future exploration steps. Based on performed combustion calculation to the maximum SO2

concentration with 850 mg / m³ (table 6) and without Desulphurisation plant, the sulphur content in

the coal is to be limited to approximately 0.3 ad-%.


Table 6 Coal quality range planned for new power plant given by ENRC. (Analyse Certificate / Test

Report from 28/06/2013).

For the potential power plant site a good air quality is assumed. Based on this assumption, flue gas

emission limits have been adopted; see column “assumption for this Study” in Table 5. For the design

of power plant units, the following emission limits are to be taken into consideration.


Table 7 Flue gas emission limits according to World Bank standards Dec. 2008 and assumption for this

study.

2.7.3 Coal handling and storage

The coal will be conveyed by a belt conveyor system from the Morupule coal mine to the coal

handling plant of the power plant. The total capacity of the active coal storage (also called coal life

storage) is 30 days and of the passive coal storage (also called coal strategic storage) 45 days at full

load operation. It has to be considered that this is only a theoretical figure and that the storages for

what bulk material ever will be never filled completely. So the disposable amount of coal on the

stock yard will be less than the design capacity.

The active coal storage consists of two sheltered stock yards with roof and walls. Each is equipped

with a stacker for piling and a scraper for reclaiming the coal in the stock yard. The common capacity

of the two piles is 30 days at full load operation.

The passive (strategic) coal storage consists of an open stockyard with one pile. Piling and reclaiming

happens with wheel mounted front end loaders. The common capacity of the pile is 45 days at full load

operation. The coal in a passive stock yard will be compacted compared to an active stock yard. This

protects the pile against abrasion by wind and rainfall as well against self-ignition in case of longer

stock length.

2.8. Lime Handling

Lime will be pneumatically injected to the e.g. humidifier slake device from separate silo that will be

located near the bag filter system. Lime will be delivered by silo truck as fine grinded material. Lime

silos will be designed for 5 days capacity according Table 3.5. A level measurement will be installed for

each silo. The silos will be equipped with all necessary devices avoiding over or under pressure during

filling or emptying operations. Discharge air will be filtered before been exhausted to the atmosphere.

2.9. Ash

Ash will be collected from the boiler furnace and from the bag filter. The fly ash from the bag filter can

be stored in one silo separately to the ash from the boiler furnace, in case the utilisation of ash, e.g. in


the cement or building industry, offers a potential for selling. The fly ash can be transported

pneumatically to the silo. The silo will have a capacity of 10 days at full load operation.

Ash can be humidified, if necessary, prior to the transport to the ash dump. Alkaline components in

the ash react with water and other components to form a rock product. This product can be

transported and stored either in a dedicated ash dump or in the coal mine.

The entire ash will be deposited in a landfill. The landfill is expected to be close to the power plant and

will be designed with a capacity of approx. 30 years power plant operation. Ash will be transported by

truck (depending on the ash mass flow alternatively by the same belt conveyor system). The fly ash

from the buffer silos will pass a humidifier before being discharged to the truck (alternatively by the

same conveyor belt system).

The waste water from the water treatment plant will be used for humidification. Water, ash and waste

products from desulphurisation form a stable and rugged product that does not require any dust

suppression for the storage areas.

2.10. Start-up Fuel

It is assumed that the auxiliary fuel for the thermal power plants shall be Diesel Fuel Oil. The existing

Morupule power plant (A+B) uses Diesel Fuel Oil as well. Furthermore infrastructure for Heavy Fuel Oil

as alternative is poor in Botswana.

The auxiliary fuel is expected to comply with the requirements of "ASTM D975 - 12 Standard

specifications for Diesel Fuel Oils" (Diesel Fuel Oil).

Fuel oil tanks will be provided supplying the main steam generator units and the auxiliary steam

generator with Diesel Fuel Oil. The fuel oil have a higher calorific value than the coal thus enabling the

plant to achieve its optimal performance parameters quicker than if the boiler was started with only

coal.

The tanks are designed for above-ground storage of Diesel Fuel Oil as flat-bottom tanks with roof and

all necessary auxiliary equipment. The tanks are constructed within a concrete emergency collection

basin in order to avoid any spillages and contaminations of the surrounding area.

Offloading and forwarding of the oil will be done via pumps and pipes designed and constructed in

accordance with applicable international standards. The 2 x 50% tanks have a 6 months normal

operation storage capacity. The fuel oil supply system is to be equipped with all safety measures such

as fire extinguishing foam system.

2.11. Water use

Three options and sources have been identified:

• Palapye WWTP

• NSWC 2

• Well Water


River water near the power plant is not available, but the above options can be used as raw water for

the water treatment facilities.

Pre-treatment for reduction of suspended solids being occurred in the well water shall be provided by

using of multi-layer filter. In the multi-layer filter the filterable constituents are precipitated. Due to

the low DOC-value in the well water an additional treatment process for reduction of biological

impurities is not necessary. The treated water is led into the clear water storage tank. The backwash

water is discharged to the sedimentation tank. The thickened sludge shall arise at the bottom of the

tank and can be used for agriculture. The occurred filtrate (overflow) shall be fed back to the inlet of

the multi-layer filter.

The water after treatment will be used as:

• Service water;

• Potable water;

• Firefighting water;

• Make-up water for semi dry desulphurisation;

• Demineralised water.

2.12. Insurance

The insurance structures that are proposed will be in line with the Lenders' insurance advisor's

expectations, fully addressing the risk features arising from the location and the type of Project and

are in line with established standards for insurance programs on projects of comparable scope and

scale.

The Project Company will obtain and maintain in effect the required insurance. The insurances will

have insurance and reinsurance endorsements and appropriate security structures in line with normal

project finance standards.

All insurances placed by the Project Company shall be in accordance with the applicable legal

requirements and the project and finance agreements.


3. Key Project Parties

3.1. Sponsors:

3.1.1 Energy & Natural Resource Corporation (Botswana)

(Pty) Ltd (up to 15%) – Shareholder and Co- Developer

3.1.1.1 Introduction to ENRC

ENRC (Energy & Natural Resource Corporation) is a Republic of Botswana based Energy Company

which is focused on the introduction, design, construction and operation of independent power plants

within the Republic of Botswana.

ENRC was established in 2013, during the preliminary phases of the Botswana government’s initiative

to initiate a tender process for a Brown and Greenfield IPP’s with the initial planning to supply Zambia

(copper belt) but due to transmission difficulties the focus was changed to supply South Africa with

strategic base load energy.

3.1.1.2 ENRC capabilities and team

The ENRC management team have been involved in the international energy and resource sector for

decades and have focused on Botswana as having the potential to become the foremost energy

exporter in Africa due to the unique and fundamental characteristics of the country, its strategic

position and the abundance of an untapped natural fuel source (coal).

3.1.1.3 ENRC worldwide activity

The ENRC would like to become the leading power generation IPP in Africa and has identified Botswana

as the premier destination for power investment in Southern Africa.

3.1.2 Atlantic Energy Partners (up to 5%) - Shareholder and Co-

Developer

ENRC has entered into a memorandum of understanding with AEP for the development of energy

facilities in Botswana.

3.1.2.1 Introduction to AEP

AEP was incorporated with the vision of providing the energy sector with a full turnkey service provider

of excellence.

3.1.2.2 AEP capabilities and team

The AEP team includes technical engineering expertise in energy development, procurement, and

project management. The team has strong financial skills including: project feasibility assessments;

due diligence; legal framework implementations; corporate structuring and tax optimisation; capital

raising and structuring for optimal returns on equity investments.


AEP has a cumulative track record of successfully developing projects from initiation to financial

closure of four separate projects totalling 225 MW of solar PV and 138 MW of onshore wind for the

Renewable Energy IPP Procurement Programme in South Africa (“REIPPPP”). Three separate solar

projects totalling 225MW have been awarded preferred bidder status from the 4th bidding round,

which took place in August 2014. This amounts to a total of 588MW of awarded projects in the SA

REIPPP Programme.

In January 2016 we were awarded a 50MW Solar PV by the Republic of Mali located in Sikasso, Mali.

In October 2016 AEP received a LOI to develop 50MW of solar PV in Pakistan. AEP hope to reach

financial close of a 100MW solar PV project in Nigeria in 2018. AEP has a pipeline of renewable energy

projects in excess of 2GW in SA and Africa.

The AEP management team has cumulatively developed and sold more than 15 wind and solar projects

in South Africa up to full permitting of 890 MW and will be bidding another 5 solar projects in the

Expedited bidding round totalling 375MW and their pipeline of renewable energy assets will exceed

1GW of capacity over the next three years.

3.2 Strategic Equity Partner (80 to 100%)

A partner with the relevant technical and financial expertise to bring the project to Financial Close, and

provide the relevant development funding.

3.3 Coal Supplier

The main fuel for the planned thermal power plant in Botswana will be local mine-mouth bituminous

coal of the Morupule mine.

The Morupule Coal Mine has been in production since 1973. The total inferred inventory coal within

the Morupule mining lease area is approximately 12 billion tonnes as at November 2014; at the current

mining rates the mine has over 1000 years of reserves available.

3.4 EPC and O&M Contractor

3.4.1 O&M Contractor

The O&M contractor may be the EPC, overseen by the Owner Engineer, or we may elect UNIPER to

directly be the O&M contractor.

UNIPER is an international energy company with 13,000 employees. UNIPER combine a balanced

portfolio of technologically advanced large-scale assets with outstanding technical and commercial


expertise. With 38GW of installed generation capacity (11.4GW of this being Coal power plants),

UNIPER are among the largest global power generators.

3.4.2 EPC Contractor

*Still to be selected

3.5 Sponsor’s Advisors

3.5.1 Financial Advisors: Waterborne Capital

WaterBorne Capital is an independent financial boutique established to focus on the numerous op-

portunities currently emanating within the Infrastructure, Resources and Energy Sectors across Af-

rica.

WaterBorne Capital distinguishes itself by being able to unlock client value through innovative, inde-

pendent Financial Advice and Capital Raising assistance. Seamless execution is ensured through a co-

hesive and complementary skill set provided by a highly experienced team of professionals with

proven track records across the Continent in the given Sectors.

SERVICES

Embedded in our culture is the establishment of mutually beneficial long-term partnerships built on

the foundations of trust, efficiency, reliability, quality, and value added solutions.

Building sustainable relationships through intellectual capital supported by a reliable platform that

delivers:

• Corporate Finance

• Capital Raising

• Project Finance Advisory and Arranging

• Facilitation of fully wrapped EPC, Operations and Maintenance contracts

• Black Economic Empowerment partner introductions

• Specific Black Economic Empowerment Capital Raising within the given sectors

3.5.2 Legal Advisors: Norton Rose Fulbright

Norton Rose Fulbright is a global legal practice. The firm provides the world’s pre-eminent corporations

and financial institutions with a full business law service and has more than 3,800 lawyers based in

over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the

Middle East and Central Asia.


Recognized for their industry focus, Norton Rose Fulbright is strong across all the key industry sectors:

financial institutions; energy; infrastructure, mining and commodities; transport; technology and

innovation; and life sciences and healthcare.

As a dynamic, global legal practice with offices in Johannesburg, Durban and Cape Town, Norton Rose

Fulbright has one of the largest legal footprints in South Africa. They employ more than 500 people,

with 200 lawyers offering experience and knowledge across the spectrum of legal disciplines. Norton

Rose Fulbright’s clients include financial institutions, major industrial and commercial corporations,

mining houses, parastatals and government departments.

Norton Rose Fulbright’s global solar CV is unparalleled and they are recognised as having a leading

team of solar project specialists across their global network. Norton Rose Fulbright’s South African

experience, in particular with the REIPPP Programmed, coupled with its experience of advising on all

aspects of solar PV projects sets them apart from their competitors in their proposal to act as the

Sponsor’s advisors for the Projects.

Legal advisors with real solar PV project experience are rare. Norton Rose Fulbright’s solar project

experience to date means that they are able to benchmark previous solar projects they have advised

on, including solar projects in Rounds 1 and 2 of the South African REIPP Procurement Programme as

well as their general experience in the renewable energy sector.]


4 Project Description

4.1 Site and Project Assessment

The 2 x 300MW Coal Fired Power Plant Projects are located 280km north of the town of Gaborone.

Palapye is the nearest village, situated approximately 5 km to the East of the Moropule Power Station.

The Projects site has been secured by executed approval by the Palapye Sub Land Board. The relevant

servitudes and servitude options have also been obtained.

The following is a summary of the site assessment results:

S/No Criteria Site Suitability Remarks

1 Proximity to/Location of

coal source Yes

Mine-mouth arrangement. Coal supply using

overland conveyors is the choice mode of

transport covering distances of up to 5km.


water source Yes

Water from ground water wells (deep wells) will

serve as raw water supply for the entire power

plant.


Limestone Yes

Limestone to be supplied by truck from the

local limestone quarry.

4 Land requirements Yes

There is sufficient land available to the power

plant and for the ash dump for the 30year life of

the project.

5 Site accessibility Yes

The access roads will be constructed within the

facility. Facility access roads from the nearest

asphalt road in the north to the facility and to

the coal and ash storage areas shall also be

provided.

6 Topography Yes Area is quite even which is favourable for

locating a power plant.

7 Geotechnical

Considerations Yes

No geotechnical fatal flaws identified, however,

a more detailed analysis of the properties of

both the soil and the bedrock is required. Such

additional soil investigation will be covered

under the EPC contract.

Table 8 Site assessment result summary


The map and layout of the ENRC IPP site and Morupule Coal Mine is displayed below:

Figure 2: Map of ENRC IPP site

The map and layout of the Morupule Coal Mine is displayed below:

Figure 3: Map and layout of the Morupule Coal Mine



4.2 Site Infrastructure

The main infrastructure features of the Project include the following:

Switch Yard A HV switching yard including breakers, links, busbars, transformers, control,

protection and measurement equipment will be installed.

Overhead

Lines

The connection between the secondary winding of the generator

transformer and the HV-outdoor type switchyard will be performed with

overhead line connections.

The connection between the secondary winding of the unit auxiliary

transformer and the MV-switchgear will be performed with single core

cables by plug-in connections.

Coal The coal will be run-of-mine coal, or only marginally quality enhanced coal

supplied by Morupule open cast mine located near the power complex.

Coal Delivery The coal will be conveyed by a belt fugitive dust emissions from dust

generation points.

Coal Stockpile Coal storage can be obtained with coal silos or roofed life coal stockyard. The

active coal storage consists of two sheltered stock yards with roof and walls.

Each is equipped with a stacker for piling and a scraper for reclaiming the

coal in the stock yard. The common capacity of the two piles is 30 days at full

load operation.

Ash Handling The fly ash can be transported pneumatically to the silo. The silo will have a

capacity of 10 days at full load operation.

Limestone Lime will be pneumatically injected to the e.g. humidifier slake device from

separate silo that will be located near the bag filter system. Lime will be

delivered by silo truck as fine grinded material. Lime silos will be designed

for 5 days capacity.

The silos will be equipped with all necessary devices avoiding over- or under

pressure during filling or emptying operations. Discharge air will be filtered

before been exhausted to the atmosphere.

Water Raw water for the power plant will be sourced from Palapye WWTP , NSWC2

and ground water wells. Raw water will go through a pre-treatment for the

reduction of suspended solids. The treated water will be led into a clear

water storage tank. The backwash water will be discharged to the

sedimentation tank. Thickened sludge shall arise at the bottom of the tank

and can be used for agriculture.

Wastewater

Treatment

Waste water will arise from:

• Backwash water multi-layer filter;


• Waste water regeneration mixed bed filter;

• Sewage water treatment;

• blow down;

• Sampling water;

• Used service water.

The boiler blow down (after recooler) and sampling water can be used as

source for raw water to reduce the demand of well water.

All other waste waters will be collected. A part of this water will be used for

moistening of the ash and evaporation.

Roads Access roads and internal roads within the project locality boundaries, as

well as upgrading and tarring of the existing provincial road from current

gravel transition point to the power plant, will be provided and prevent

contamination of the environment.

Total

Footprint

Estimates of the extent of the proposed development footprint (including

Project production unit/s (boilers / furnaces, turbines, generator and

associated equipment, control room), Office and maintenance area/s and

ash dump area:

• Power Plant - 50ha

• Ash Dump – 500ha (extending over a 40-year period)

• Strategic Coal Stockpile – 100ha (providing for a stockpile for 30 days)

• A Raw-Water Dam - 2ha

Extent of

Broader Site

210 hectares

4.3 Road design, Landscaping

All main roads within the facility boundaries will be double lane roads with 6.0 m wide black asphalt

topping and 1 m wide shoulder on one side of the road. Minor roads will be single lane road with 4.0m

wide black topping and 1.0 m wide shoulders on one side.

Facility access road from the nearest public asphalt road in the north to the facility and to the coal and

ash storage areas shall also be provided.

Finished top (crest) of roads will be about 15 cm above the surrounding grade level. All roads will be

designed for heavy trucks according to local standards. The heavy equipment moving loads will also be

properly considered.

All buildings will be provided by access roads. Surface drainage of roads shall be provided by giving

proper longitudinal slopes and cross falls. Within the facility boundary the roads will be edged on both

sides, e.g. by precast concrete edging blocks


All roads inside the facility boundary will get an illumination system by streetlights, which ensure that

the workers can use the roads during night without additional lighting systems.

The soil-surface inside the facility boundary will be executed in the main areas with gravel finish. Only

small areas at the access to the plant and in the area of the administrative buildings will be executed

with top soil layer for planting.

4.4 Site infrastructure

The table below lists the interfaces to existing, local public systems and infrastructure.

Table 9 Assumption of general connections to existing, local public systems and infrastructure


4.5 Planning Approvals and Processes

The Sponsor has secured diligently all consents needed for bid for both project based on an

experienced background of project development in South Africa.

The status of consents and approvals is as follows:


1. Environmental Authorisation

In Progress

Ecosurv Environmental Consultants where appointed on

01 July 2016 to proceed with the ESIA

and the Department of Environmental Affairs (Botswana)

has approved the Scoping Report

2. Written allocation of water alloca-

tion and fully integrated water use

licence application

In Progress


MoU with Water Affairs in terms of Palapye

WWTP

3. Waste Management License To be obtained

4. Inter Government Cross Border

Agreements

Approved

Table 10 Consents required

Detailed information is provided in the following paragraphs for the different consents and

applications.

4.6 Environmental Impact Assessment

Ecosurv Environmental Consultants (Pty) Ltd have been appointed by the Developers as the

independent environmental assessment practitioner to undertake the required EIA process and

associated public participation for the Projects.

The projects proposed within the EIA for a footprint of 120ha comprise:

• Construction of a 2x 300MW coal fired power plant;

• Associated infrastructure including:

Auxiliary buildings,

Inverter stations,

Overhead electric lines,

Upgrade of existing internal farm roads to accommodate the construction vehicles; and

Construction of substation to connect the proposed coal fired power plant with Eskom’s grid



4.7 Grid Application

BPC is at present in discussion with Eskom on this interconnection to advance it as a project. The

Phokoje-Matimba/Medupi route will not be reinforced in future due to the large number of generation

already installed in the Matimba/Medupi area.

The BOSA Interconnector project has been initiated and the feasibility study has commenced with

Aurecon appointed as the project consultants.

BPC internal network reinforcements e.g. a second MorupuleB-MorupuleA transformer and third Isang

transformer, might be required to successfully evacuate the ENRC power onto the indicated routes

during contingencies. The intent is to coordinate all network requirements and findings with the BPC

future considerations, Master Plan and strategic intents.

600 MW south

It is assumed that the 400 kV transmission system between Botswana and South Africa,

BOSA, is in service by the time that ENRC is commissioned.

Some concluding remarks on the study findings are stated below.

Five options were considered and studied. All these options are technically viable.

Option 5 is the recommended option because of the following:


• The least transfer limit constraints

• The cost to implement is approximately USD75m.

• No work at Morupule substation

• Limited construction required

The scope of work required is as indicated in the following figure:

Other recommendations include:

• All generators must be equipped with power system stabilisers

• Selecting generators with an inertia constant of 2.5 or higher

• Complying with all BPC equipment specifications

• Complying with the operational procedures for commissioning as agreed with BPC and

in line with the intended PPA.

• The 400 kV inter-connection, from Isang to Watershed (BOSA project), should be in

service and as a minimum be assumed to be a trip tern double circuit.

• Transfer limits on the Matimba-Phokoje line should always be adhered to.

• The proposed transmission integration solution needs to be evaluated from an imple-

mentation point of view. The site needs to be visited to evaluate the practical imple-

mentation of the transmission line reconfigurations.


Increase to 600 MW generation was evaluated and the following network provides adequate

results.

Figure 4: 600 MW System Healthy

The network is operated within acceptable limits.

Figure 5: 600 MW with MorupuleB-Phokoje out of service

The network contingency is operated within acceptable limits.

0.972128.3

6.1

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BPC Generation : 1032.0 MW

ENRC Generation : 600.0 MW

BPC - Eskom 132kV flow : 5.0 MW

BPC - ZESA Total Inflow : 79.4 MW

BPC - Eskom 400kV flow : -12.6 MW

BPC - Watershed 400kV flow : 717.0 MW

BPC - Eskom Total flow : 709.5 MW

145MEDUPI4

5735PHOKJ4

SW

101.4

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8016MORUPULE400

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0.984216.5

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5735PHOKJ4

SW

101.8

1.009403.5

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8061CB7

121.0

495.4

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71.0

485.5

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SW

0.0

485.5

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72.8

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0.996398.5

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1.02020.4

150.0

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0

133.7

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1.02020.4

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9.6

0.1

0.969127.9

17.1

3.91.0

4.8 7.5 71210POKO1

0.979129.2

4.8

1.1

4.8

0.4

0.979129.2

4.5

1.1

4.5

0.1

0.958126.5

5148BT_SA/B1

0.960126.7

71212NORPLAN1

5143SGDTS1

0.962127.0

5145GABRN/S1

0.958126.4

5994RSA_BPCB

0.960126.7

5995RSA_BPCC

0.966127.5

71054DWAALBO1

8063PHAKALANE

71055DERDEPOORT

9.1

8.4

9.1

8.3 9.0

4.5

9.1

8.3

0.960126.7

1.0

43.9

3.911 2.4 43.8

3.911

43.8

2.4

43.9

93035WATRS_D6

0.961126.8

93400WATRS_D5

0.961126.8

160.5

10.811

160.5

2.7

160.5

10.811

160.5

2.7

5123KOP132

0.959126.6

9.1

8.7 9.1

0.966127.5

11.1

4.7

9.5

5976THAM

0.976128.8

8001WOODHALL

0.945124.7

4.5

1.4

11.4 11.3

3.08006KGALE VIEW

0.961126.9

8.4

2.3

16.7

3.9

16.8

3.6

8007GOVT ENCLAVE

0.957124.5

21.1

5.7

10.6

0.2

10.6

2.810.6

0.2

10.6

2.8

9.1

0.8

5149BT_SA/A1

0.959126.6

9.1

8.78.4 0.959

126.6

8.4 9.1

4. 7 9

.5

4.79. 5

5.2

4.7

0.968127.8

5.3

9.7 10.9 5141BRDHR1

0.960126.7

7.4

13.9

7.5

13.8

7.4

13.9

7.5

13.8

122.8

4.3

22.8

3.4

123.1

4.3

23.1

3.4

1 149.3

9.3

49.3

7.3

49.3

9.3

49.3

7.3

5972GABRN/E1

0.962126.9

10.2

2.3

10.2

2.4

10.2

2.3

10.2

2.4

0.960126.7

13.2

4.4 4.7

13.2

4.4

13.2

4.7

12.5

3.8

12.4

4.4

5.3

9.7 9.0

5.0

9.0

5.0

9.0

5.0

5147BT_SA/C1

1 1

13.2

5122KOFF

4.8

9.1

11

5973ARPRT

12.3

64.465.0

13.0

5.4

8.4

5993RSA_BPCA

9.5

4.6

9.1

5980GABRN/S1

0.97310.7

20.9

5.7

13.8

2.8

0.9

75

114.0

3.9

14.0

3.4

0.9

75

16.8

1.9

6.8

1.7

0.9

75

16.8 6.8

0.9

75

17.0 7.0

1.72.0

1.71.9

5162MORPL/G1

1.02011.2

33.0

11 0.6

29.4

3.8

5163MORPL/G2

1.02011.2

33.0

3.8R 11 0.6

29.4

3.8

5164MORPL/G3

1.02011.2

33.0

4.1R 11

29.5

1.6

29.5

4.1

5165MORPL/G4

1.02011.2

33.0

4.1R 11

28.9

1.7

28.9

4.1

29.4

29.4

3.8R

5142SGDTS2

0.968213.0

5140MORPL2

1.012222.6

11.4

5996THAM2

0.973214.2

8019ISANG

0.977215.0

119.1

8.1

119.9

5.7

5137ORAPA

SW

20.3

5138SERUL2

1.014223.0

82.9

13.5

83.8

21.5

5736PHOKJ2

1.013222.8

10.0

0.0

106.1

23.3

104.8

14.0

270.0

45.0

270.3

12.585.7

4.4

84.0

28.6

72.2 70.9

24.4

8060MAUN 220

1.000220.0

35.3

8.9

35.1

3.0

5139SLPKW2

1.011222.4

50.4

18.4

50.4

17.7

27.8 26.8

1

15.1

20.5

15.1

20.2

0.9

8751

15.8

21.5

15.8

21.2

1

15.0 15.0

20.1

39.3

65.3

20.3

0.9

875

0.9

875

1.007221.6

66.366.7

1 1

32.3

82.5

36.1

1 1

32.3

2.6

65.2

82.5

36.1

82.5 82.5

1 1

0.4 10.6

8065METSIMOTLHAB

0.972213.9

7.1

66.2

2.566.6

7.1

66.2

2.5

25.4

19.1

25.4

17.1

21.4 5.2

21.4

10.5

5961ORAPA220

1.013222.9

42.1

4.3

1 0.9

8

42.1

5.5

42.1

4.3

1 0.9

8

42.1

5.5

83.9

10.0

84.2

8.6

8076MAUN220

0.973214.1

28.7

6.811

28.7

6.1

28.7 28.7

SW

0.0

1 6.8 6.1 1

66.6

16283INSUKAM3

305.7

100.5

1 1.0

2

207.9

57.2

208.0

52.1

1.000330.0

16280SVCINSK

1.06018.5

0.0

107.1R

1 1 0.0

107.1

0.1

101.0


Figure 6: 600 MW with Phokoje-Medupi out of service


Figure 7: 600 MW with MorupuleB-Isang out of service


0.971128.2

6.6

1.2

6.6

3.5

2.2

5.3

2.2

2.3

71053DWB SS

11.2

1.0

11.2

1.0








145MEDUPI4

5735PHOKJ4

SW

98.8

0.994397.7

8016MORUPULE400

15.4

251.2

18.9

8061CB7

104.7

430.4

8062CB8

54.4

423.0

8017ISANG

SW

0.0

423.0

11.835.3 54.4

1.004401.4

5130BT_ZM4

1.005402.1

18014ZESA-BPC

1.005402.1

79.4

91.9

79.4

91.9

16284INSUKAM4

1.013405.0

83.0

79.4

91.9 79.4

91.9

79.6

129.6

423.0430.4

8018MMAMABULA

249.4

1.012404.6

0.970387.9

1.004401.4

1.016406.2

5962ORAPA400

0.999399.6

119.0

64.5

119.5

63.6

1

SW

99.8

8075MAUN400

0.981392.3

57.7

51.5

57.5

109.8

SW

96.2

79.2

138WATRS4

0.969387.5

349.8

71.4

355.0

13.4

625MOOKODI4

1.022408.8

125PLUTO4

0.989395.6

128SELEMO4

1.005402.0

252.1

130.0

249.2

124.5

138.7

141.8

139.3

38.4

58.7

133.1

58.5

8.0

SW

0.0

284.7

175.1

283.7

153.3

10.0

97.8

SW

0.0 349.8

71.4

355.0

13.4

430.4

430.5

104.7

423.1

11.8

0.970387.9

35.3

8020MORUPULE B 1

1.02020.4

150.0

29.8R

1 -30.0

0

133.7

16.9

133.7

29.8

8021MORUPULE B 2

1.02020.4

150.0

29.8R

1

133.7

16.9

133.7

29.8

8022MORUPULE B 3

1.02020.4

150.0

29.8R

1 -30.0

01

133.7

29.8

8023MORUPULE B 4

1.02020.4

150.0

29.8R

1 -30.0

01

133.7133.7

29.8 16.9

16.9

133.7

1 -30.0

0

1

1.02020.4

134.3

16.9

1 -30.0

01

134.3

29.9

150.0

29.9R

8025MORUPULE B 6

1.02020.4

134.3

16.9

1 -30.0

01

134.3

29.9

150.0

29.9R

8024MORUPULE B 5

8026MORUPULE B 7

1.02020.4

8027MORUPULE B 8

1.02020.4

300.0

31.9

1 -30.0

01

300.0

63.5

300.0

31.9

1 -30.0

01

300.0

63.5

1

16.3 0.0

1

16.3

0.0

1

16.3

0.0

1

16.3

0.0

1

15.7 0.0

1

15.7 0.0

1300.0

63.5R

1300.0

63.5R

3190SPITS1

0.979129.2

71002AMANDE13

0.981129.5

9.7

0.7

9.8

0.3

0.971128.2

17.2

3.96.0

2.2 4.9 71210POKO1

0.980129.3

4.9

1.0

4.9

0.4

0.980129.4

4.6

1.0

4.6

0.0

0.961126.9

5148BT_SA/B1

0.967127.6

71212NORPLAN1

5143SGDTS1

0.965127.4

5145GABRN/S1

0.961126.9

5994RSA_BPCB

0.967127.6

5995RSA_BPCC

0.968127.8

71054DWAALBO1

8063PHAKALANE

71055DERDEPOORT

2.4

6.4

2.4

6.2 2.4

2.2

2.4

6.2

0.964127.2

6.0

42.1

2.911 1.6 42.0

2.911

42.0

1.6

42.1

93035WATRS_D6

0.966127.5

93400WATRS_D5

0.966127.5

154.0

12.811

154.0

5.4

154.0

12.811

154.0

5.4

5123KOP132

0.962127.0

2.5

6.6 7.1

0.968127.8

7.5

1.4

5.8

5976THAM

0.979129.2

8001WOODHALL

0.948125.1

4.6

1.4

12.2 12.1

2.68006KGALE VIEW

0.964127.3

8.4

2.3

13.7

5.7

13.7

5.3

8007GOVT ENCLAVE

0.961124.9

21.2

5.7

10.6

0.2

10.6

2.810.6

0.2

10.6

2.8

2.5

0.4

5149BT_SA/A1

0.963127.1

2.5

6.66.4 0.963

127.1

6.4 2.4

1.4 5

.8

1. 45. 8

1.3

1.4

0.969128.0

2.3

6.1 7.3 5141BRDHR1

0.963127.2

8.7

12.6

8.7

12.5

8.7

12.6

8.7

12.5

121.4

4.9

21.4

4.1

121.6

4.9

21.6

4.1

1 146.1

10.5

46.1

8.8

46.1

10.5

46.1

8.8

5972GABRN/E1

0.965127.3

10.2

2.3

10.2

2.4

10.2

2.3

10.2

2.4

0.963127.1

13.2

4.4 4.7

13.2

4.4

13.2

4.7

12.5

3.8

12.5

4.5

2.3

6.1 5.3

2.2

5.3

2.2

5.3

2.2

5147BT_SA/C1

1 1

13.2

5122KOFF

1.3

2.4

11

5973ARPRT

9.1

55.656.0

9.5

2.3

6.4

5993RSA_BPCA

5.8

1.4

2.4

5980GABRN/S1

0.97710.7

21.0

5.7

13.8

2.8

0.9

75

114.0

4.0

14.0

3.4

0.9

75

16.9

1.9

6.9

1.7

0.9

75

16.9 6.9

0.9

75

17.0 7.0

1.72.0

1.71.9

5162MORPL/G1

1.02011.2

33.0

11 0.8

29.4

4.0

5163MORPL/G2

1.02011.2

33.0

4.0R 11 0.8

29.4

4.0

5164MORPL/G3

1.02011.2

33.0

4.3R 11

29.5

1.8

29.5

4.3

5165MORPL/G4

1.02011.2

33.0

4.3R 11

28.9

2.0

28.9

4.3

29.4

29.4

4.0R

5142SGDTS2

0.972213.9

5140MORPL2

1.011222.5

11.4

5996THAM2

0.977215.0

8019ISANG

0.982216.0

112.8

11.0

113.5

8.0

5137ORAPA

SW

20.3

5138SERUL2

1.010222.1

42.9

0.2

43.1

11.3

5736PHOKJ2

1.005221.1

10.0

0.0

34.7

4.7

34.6

11.6

172.0

25.2

172.0

12.193.3

9.0

91.4

22.7

78.7 77.2

19.5

8060MAUN 220

1.000220.0

10.6

10.0

10.6

16.2

5139SLPKW2

1.003220.6

50.0

18.2

50.1

17.4

27.5 26.5

1

55.8

5.1

55.8

3.7

0.9

8751

58.6

5.3

58.6

3.9

1

55.5 55.5

3.7

39.3

64.8

5.0

0.9

875

0.9

875

1.008221.7

63.463.8

1 1

25.2

68.0

27.7

1 1

25.2

6.4

64.7

68.0

27.7

68.0 68.0

1 1

1.9 9.5

8065METSIMOTLHAB

0.976214.8

5.8

63.2

4.163.6

5.8

63.2

4.1

22.4

19.8

22.5

17.8

20.7 5.1

20.7

10.5

5961ORAPA220

1.014223.1

30.6

7.4

1 0.9

8

30.6

8.1

30.6

7.4

1 0.9

8

30.6

8.1

61.1

16.8

61.3

14.8

8076MAUN220

0.976214.7

28.7

6.811

28.7

6.2

28.7 28.7

SW

0.0

1 6.8 6.2 1

63.6

16283INSUKAM3

305.7

100.5

1 1.0

2

210.8

73.9

210.9

68.4

1.000330.0

16280SVCINSK

1.08018.9

0.0

145.7R

1 1 0.0

145.7

0.2

134.9

0.968127.7

9.0

1.4

9.0

3.6

0.2

4.9

0.2

1.9

71053DWB SS

8.9

1.6

8.9

1.6








145MEDUPI4

5735PHOKJ4

SW

101.2

1.006402.3

8016MORUPULE400

57.5

338.2

46.2

8061CB7

171.8

699.3

8062CB8

121.1

679.7

8017ISANG

SW

0.0

679.7

57.9 11.8 121.1

1.007403.0

5130BT_ZM4

1.014405.6

18014ZESA-BPC

1.014405.6

79.3

65.1

79.3

65.1

16284INSUKAM4

1.014405.6

54.9

79.3

65.1 79.3

65.1

79.5

104.2

679.7699.3

8018MMAMABULA

335.0

1.012404.6

0.959383.8

1.007403.0

79.2

65.8

79.5

90.71.013405.3

5962ORAPA400

1.003401.3

127.6

63.3

128.2

65.1

1

SW

100.6

8075MAUN400

0.985393.9

57.9

52.0

57.7

110.7

SW

97.0

79.2

138WATRS4

0.966386.3

310.2

77.6

314.5

4.7

625MOOKODI4

1.021408.2

125PLUTO4

0.988395.0

128SELEMO4

1.004401.4

226.7

134.5

224.2

125.3

97.8

143.6

98.2

43.1

65.7

133.1

65.5

7.3

SW

0.0

287.5

174.7

286.5

153.2

10.0

97.5

SW

0.0 310.2

77.6

314.5

4.7

699.3

0.959383.8

11.8

8020MORUPULE B 1

1.02020.4

150.0

24.2R

1 -30.0

0

133.7

11.6

133.7

24.2

8021MORUPULE B 2

1.02020.4

150.0

24.2R

1

133.7

11.6

133.7

24.2

8022MORUPULE B 3

1.02020.4

150.0

24.2R

1 -30.0

01

133.7

24.2

8023MORUPULE B 4

1.02020.4

150.0

24.2R

1 -30.0

01

133.7133.7

24.2 11.6

11.6

133.7

1 -30.0

0

1

1.02020.4

134.3

11.5

1 -30.0

01

134.3

24.3

150.0

24.3R

8025MORUPULE B 6

1.02020.4

134.3

11.5

1 -30.0

01

134.3

24.3

150.0

24.3R

8024MORUPULE B 5

8026MORUPULE B 7

1.02020.4

8027MORUPULE B 8

1.02020.4

300.0

20.9

1 -30.0

01

300.0

52.1

300.0

20.9

1 -30.0

01

300.0

52.1

1

16.3 0.0

1

16.3

0.0

1

16.3

0.0

1

16.3

0.0

1

15.7 0.0

1

15.7 0.0

1300.0

52.1R

1300.0

52.1R

3190SPITS1

0.977129.0

71002AMANDE13

0.979129.2

9.8

0.8

9.9

0.2

0.968127.7

17.1

3.98.2

2.9 5.6 71210POKO1

0.978129.1

4.9

1.1

4.9

0.4

0.978129.1

4.6

1.1

4.6

0.0

0.951125.5

5148BT_SA/B1

0.962126.9

71212NORPLAN1

5143SGDTS1

0.955126.1

5145GABRN/S1

0.952125.6

5994RSA_BPCB

0.962126.9

5995RSA_BPCC

0.961126.9

71054DWAALBO1

8063PHAKALANE

71055DERDEPOORT

0.3

7.5

0.3

7.40.3

3.3

0.3

7.4

0.955126.1

8.2

40.7

3.111 1.8 40.6

3.111

40.6

1.8

40.7

93035WATRS_D6

0.963127.2

93400WATRS_D5

0.963127.2

147.8

11.211

147.8

4.4

147.8

11.211

147.8

4.4

5123KOP132

0.954125.9

0.3

7.7 8.1

0.961126.9

7.9

4.3

6.3

5976THAM

0.969127.8

8001WOODHALL

0.938123.9

4.5

1.4

12.4 12.3

2.68006KGALE VIEW

0.955126.0

8.4

2.3

12.1

5.3

12.1

4.9

8007GOVT ENCLAVE

0.951123.7

21.0

5.6

10.5

0.2

10.5

2.810.5

0.2

10.5

2.8

0.3

0.5

5149BT_SA/A1

0.955126.0

0.3

7.77.5 0.955

126.0

7.50.3

4.3 6

.3

4. 36. 3

1.9

4.3

0.960126.7

0.3

5.7 6.9 5141BRDHR1

0.953125.8

9.4

12.4

9.4

12.2

9.4

12.4

9.4

12.2

120.5

4.5

20.5

3.8

120.7

4.6

20.7

3.9

1 144.2

9.8

44.2

8.2

44.2

9.8

44.2

8.2

5972GABRN/E1

0.954126.0

10.1

2.3

10.1

2.4

10.1

2.3

10.1

2.4

0.953125.8

13.1

4.3 4.6

13.1

4.3

13.1

4.6

12.4

3.8

12.3

4.4

0.3

5.7 4.9

0.2

4.9

0.2

4.9

0.2

5147BT_SA/C1

1 1

13.1

5122KOFF

4.3

0.3

11

5973ARPRT

10.4

51.251.6

10.7

0.3

7.5

5993RSA_BPCA

6.3

4.4

0.3

5980GABRN/S1

0.96710.6

20.8

5.6

13.7

2.8

0.9

75

113.9

3.9

13.9

3.4

0.9

75

16.8

1.9

6.8

1.7

0.9

75

16.8 6.8

0.9

75

16.9 6.9

1.71.9

1.71.9

5162MORPL/G1

1.02011.2

33.0

11 0.5

29.4

3.7

5163MORPL/G2

1.02011.2

33.0

3.7R 11 0.5

29.4

3.7

5164MORPL/G3

1.02011.2

33.0

3.9R 11

29.5

1.4

29.5

3.9

5165MORPL/G4

1.02011.2

33.0

3.9R 11

28.9

1.6

28.9

3.9

29.4

29.4

3.7R

5142SGDTS2

0.962211.6

5140MORPL2

1.012222.7

11.4

5996THAM2

0.967212.7

8019ISANG

0.971213.6

108.5

9.9

109.2

6.8

5137ORAPA

SW

20.5

5138SERUL2

1.015223.4

36.2

5.4

36.4

17.3

5736PHOKJ2

1.014223.0

10.0

0.0

29.1

15.2

29.0

1.4

237.8

25.0

237.9

0.2135.6

0.7

131.6

18.5

114.4 111.2

16.2

8060MAUN 220

1.000220.0

9.9

3.0

9.9

9.3

5139SLPKW2

1.012222.6

50.5

18.4

50.5

17.7

27.9 26.9

1

57.9

11.9

57.9

10.4

0.9

8751

60.7

12.5

60.7

10.9

1

57.5 57.5

10.3

39.3

65.3

11.8

0.9

875

0.9

875

1.013222.8

61.261.6

1 1

24.2

25.4

24.8

1 1

24.2

0.9

65.3

25.4

24.8

25.4 25.4

1 1

1.5 9.7

8065METSIMOTLHAB

0.966212.5

6.0

61.0

3.761.4

6.0

61.0

3.7

21.1

18.8

21.1

16.9

20.1 5.1

20.1

10.3

5961ORAPA220

1.019224.1

34.8

6.4

1 0.9

8

34.8

7.3

34.8

6.4

1 0.9

8

34.8

7.3

69.4

14.7

69.7

12.9

8076MAUN220

0.980215.6

28.9

6.911

28.9

6.2

28.9 28.9

SW

0.0

1 6.9 6.2 1

61.4

16283INSUKAM3

305.7

100.5

1 1.0

2

210.9

60.9

211.0

55.6

1.000330.0

16280SVCINSK

1.06318.6

0.0

114.2R

1 1 0.0

114.2

0.1

107.4


Figure 8: 600 MW with Isang-Watershed out of service


Figure 9: 600 MW with Morupule transformer out of service

The minimum requirement for ENRC connection of 600 MW for wheeling south is:

• 1st Isang-Watershed 400 kV line (first new route for Medupi-Phokoje contingency)

• 2nd Isang-Watershed 400 kV line (second new route for n-1 of Isang-Watershed for transfer limit

exceedance on Medupi-Phokoje line)

• Morupule-Isang 2nd 400 kV line (if the Morupule-Mmamabula-Isang line is not constructed)

• ENRC power station loop-in and out of Isang-MorupuleB 400 kV line

• Possible Eskom network reinforcements (not studied)

• Possible phase shifting transformers at Watershed (contribute to control of flows on wheeling

paths to prevent transfer limit exceedances)

BOSA Interconnector Project

Eskom and BPC through SAPP have initiated a feasibility study in terms of a Botswana – South Africa

transmission interconnector (BOSA), this project will supply the backbone transmission

0.968127.8

2.8

5.9

2.8

8.2

8.8

10.8

8.7

8.1

71053DWB SS

21.2

3.7

21.2

3.7








145MEDUPI4

5735PHOKJ4

SW

101.3

1.006402.6

8016MORUPULE400

58.0

315.8

50.8

8061CB7

102.4

390.5

8062CB8

51.8

384.4

8017ISANG

SW

0.0

384.4

2.145.3 51.8

1.007402.6

5130BT_ZM4

1.014405.8

18014ZESA-BPC

1.014405.8

77.9

63.7

77.9

63.7

16284INSUKAM4

1.014405.6

53.5

77.9

63.7 77.9

63.7

78.1

102.9

384.4390.5

8018MMAMABULA

313.0

1.012404.6

0.973389.3

1.007402.6

87.6

65.1

87.8

89.71.013405.3

5962ORAPA400

1.003401.1

122.8

62.9

123.3

65.7

1

SW

100.5

8075MAUN400

0.984393.8

57.9

51.9

57.7

110.6

SW

96.9

77.8

138WATRS4

0.969387.5

625MOOKODI4

1.022408.7

125PLUTO4

0.988395.2

128SELEMO4

1.004401.6

211.1

128.9

208.8

116.4

71.1

129.9

71.4

30.9

70.3

135.5

70.0

4.9

SW

0.0

290.1

175.8

289.0

154.4

10.0

97.6

SW

0.0 571.1

134.9

585.3

51.6

390.5

390.5

102.5

384.4

2.1

0.973389.3

45.3

8020MORUPULE B 1

1.02020.4

150.0

25.4R

1 -30.0

0

133.7

12.7

133.7

25.4

8021MORUPULE B 2

1.02020.4

150.0

25.4R

1

133.7

12.7

133.7

25.4

8022MORUPULE B 3

1.02020.4

150.0

25.4R

1 -30.0

01

133.7

25.4

8023MORUPULE B 4

1.02020.4

150.0

25.4R

1 -30.0

01

133.7133.7

25.4 12.7

12.7

133.7

1 -30.0

0

1

1.02020.4

134.3

12.7

1 -30.0

01

134.3

25.5

150.0

25.5R

8025MORUPULE B 6

1.02020.4

134.3

12.7

1 -30.0

01

134.3

25.5

150.0

25.5R

8024MORUPULE B 5

8026MORUPULE B 7

1.02020.4

8027MORUPULE B 8

1.02020.4

300.0

23.3

1 -30.0

01

300.0

54.5

300.0

23.3

1 -30.0

01

300.0

54.5

1

16.3 0.0

1

16.3

0.0

1

16.3

0.0

1

16.3

0.0

1

15.7 0.0

1

15.7 0.0

1300.0

54.5R

1300.0

54.5R

3190SPITS1

0.976128.8

71002AMANDE13

0.978129.1

9.4

1.1

9.4

0.1

0.968127.8

17.1

3.9 4.1

5.0 7.6 71210POKO1

0.977128.9

4.7

1.2

4.7

0.6

0.977129.0

4.4

1.2

4.4

0.2

0.967127.6

5148BT_SA/B1

0.959126.6

71212NORPLAN1

5143SGDTS1

0.971128.1

5145GABRN/S1

0.965127.4

5994RSA_BPCB

0.959126.6

5995RSA_BPCC

0.970128.0

71054DWAALBO1

8063PHAKALANE

71055DERDEPOORT

15.5

7.4

15.5

7.3 15.3

3.8

15.5

7.3

0.965127.4

4.1

46.4

4.011 2.4 46.2

3.911

46.2

2.4

46.4

93035WATRS_D6

0.966127.5

93400WATRS_D5

0.966127.5

144.3

12.411

144.3

6.0

144.3

12.411

144.3

6.0

5123KOP132

0.965127.4

15.5

7.6 8.0

0.970128.0

11.7

11.3

10.2

5976THAM

0.985130.0

8001WOODHALL

0.953125.7

4.6

1.5

10.7 10.6

3.18006KGALE VIEW

0.969127.9

8.5

2.3

20.1

3.9

20.2

3.6

8007GOVT ENCLAVE

0.965125.4

21.3

5.7

10.6

0.2

10.6

2.910.6

0.2

10.6

2.9

15.6

0.8

5149BT_SA/A1

0.965127.3

15.5

7.67.4 0.965

127.3

7.4 15.5

11

.3

10.2

11.3

10

.2

6.2

11.3

0.976128.8

9.4

11.5 12.6 5141BRDHR1

0.969127.9

5.9

14.7

5.9

14.5

5.9

14.7

5.9

14.5

124.6

4.6

24.6

3.6

124.9

4.6

24.9

3.6

1 153.0

9.9

53.0

7.7

53.0

9.9

53.0

7.7

5972GABRN/E1

0.970128.0

10.3

2.3

10.3

2.4

10.3

2.3

10.3

2.4

0.968127.8

13.3

4.4 4.7

13.3

4.4

13.3

4.7

12.6

3.9

12.5

4.5

9.4

11.5 10.8

8.8

10.8

8.8

10.8

8.8

5147BT_SA/C1

1 1

13.3

5122KOFF

11.4

15.5

11

5973ARPRT

11.3

73.774.4

12.3

9.5

7.4

5993RSA_BPCA

10.2

11.0

15.5

5980GABRN/S1

0.98110.8

21.1

5.7

13.9

2.9

0.9

75

114.1

4.0

14.1

3.5

0.9

75

16.9

2.0

6.9

1.7

0.9

75

16.9 6.9

0.9

75

17.0 7.0

1.72.0

1.72.0

5162MORPL/G1

1.02011.2

33.0

11 0.6

29.4

2.5

5163MORPL/G2

1.02011.2

33.0

2.5R 11 0.6

29.4

2.5

5164MORPL/G3

1.02011.2

33.0

2.5R 11

29.5

0.0

29.5

2.5

5165MORPL/G4

1.02011.2

33.0

2.4R 11

28.9

0.1

28.9

2.4

29.4

29.4

2.5R

5142SGDTS2

0.977215.0

5140MORPL2

1.016223.6

11.5

5996THAM2

0.982216.1

8019ISANG

0.987217.0

127.1

8.7

128.0

6.8

5137ORAPA

SW

20.5

5138SERUL2

1.017223.8

51.6

5.1

51.9

16.2

5736PHOKJ2

1.015223.2

10.0

0.0

49.3

13.3

49.1

2.4

183.4

31.2

183.5

16.386.7

8.4

85.0

25.3

73.1 71.8

21.6

8060MAUN 220

1.000220.0

2.2

3.3

2.2

9.8

5139SLPKW2

1.013222.8

50.5

18.5

50.5

17.7

27.9 26.9

1

48.3

10.9

48.3

9.9

0.9

8751

50.7

11.5

50.7

10.4

1

48.0 48.0

9.8

39.5

65.4

10.9

0.9

875

0.9

875

1.013222.8

70.270.7

1 1

27.9

91.7

32.2

1 1

27.9

6.0

65.3

91.7

32.2

91.7 91.7

1 1

0.5 10.5

8065METSIMOTLHAB

0.981215.9

6.9

70.3

2.670.7

6.9

70.3

2.6

28.3

20.2

28.4

18.2

22.4 5.2

22.4

10.6

5961ORAPA220

1.018224.1

32.4

6.4

1 0.9

8

32.4

7.2

32.4

6.4

1 0.9

8

32.4

7.2

64.7

14.8

64.9

12.8

8076MAUN220

0.980215.5

28.9

6.811

28.9

6.2

28.9 28.9

SW

0.0

1 6.8 6.2 1

70.7

16283INSUKAM3

305.7

100.5

1 1.0

2

210.2

60.3

210.4

55.0

1.000330.0

16280SVCINSK

1.06218.6

0.0

112.5R

1 1 0.0

112.5

0.1

105.9

0.972128.3

7.1

0.3

7.1

2.5

2.0

4.5

2.0

1.4

71053DWB SS

10.5

0.2

10.5

0.2








145MEDUPI4

5735PHOKJ4

SW

101.2

1.006402.4

8016MORUPULE400

65.6

325.9

56.2

8061CB7

111.9

471.6

8062CB8

61.5

462.8

8017ISANG

SW

0.0

462.8

18.328.7 61.5

1.004401.8

5130BT_ZM4

1.014405.6

18014ZESA-BPC

1.014405.6

83.3

65.1

83.3

65.1

16284INSUKAM4

1.014405.6

55.1

83.3

65.1 83.3

65.1

83.5

104.1

462.8471.7

8018MMAMABULA

322.9

1.012404.6

0.969387.7

1.004401.8

21.6

57.1

21.6

84.31.014405.6

5962ORAPA400

1.001400.4

133.7

60.4

134.3

66.6

1

SW

100.2

8075MAUN400

0.983393.1

57.8

51.7

57.6

110.2

SW

96.6

83.1

138WATRS4

0.968387.2

358.1

73.5

363.6

14.3

625MOOKODI4

1.022408.7

125PLUTO4

0.989395.5

128SELEMO4

1.005401.9

257.4

131.1

254.4

126.8

147.6

145.1

148.3

41.0

57.1

132.5

56.9

8.5

SW

0.0

283.9

174.9

282.9

153.0

10.0

97.7

SW

0.0 358.1

73.5

363.6

14.3

471.6

471.7

111.9

462.9

18.3

0.969387.7

28.7

8020MORUPULE B 1

1.02020.4

150.0

28.4R

1 -30.0

0

133.7

15.6

133.7

28.4

8021MORUPULE B 2

1.02020.4

150.0

28.4R

1

133.7

15.6

133.7

28.4

8022MORUPULE B 3

1.02020.4

150.0

28.4R

1 -30.0

01

133.7

28.4

8023MORUPULE B 4

1.02020.4

150.0

28.4R

1 -30.0

01

133.7133.7

28.4 15.6

15.6

133.7

1 -30.0

0

1

1.02020.4

134.3

15.5

1 -30.0

01

134.3

28.5

150.0

28.5R

8025MORUPULE B 6

1.02020.4

134.3

15.5

1 -30.0

01

134.3

28.5

150.0

28.5R

8024MORUPULE B 5

8026MORUPULE B 7

1.02020.4

8027MORUPULE B 8

1.02020.4

300.0

29.1

1 -30.0

01

300.0

60.6

300.0

29.1

1 -30.0

01

300.0

60.6

1

16.3 0.0

1

16.3

0.0

1

16.3

0.0

1

16.3

0.0

1

15.7 0.0

1

15.7 0.0

1300.0

60.6R

1300.0

60.6R

3190SPITS1

0.979129.2

71002AMANDE13

0.981129.5

9.8

0.7

9.8

0.3

0.972128.3

17.2

3.96.6

1.4 4.1 71210POKO1

0.980129.3

4.9

1.0

4.9

0.4

0.980129.4

4.6

1.0

4.6

0.0

0.964127.2

5148BT_SA/B1

0.969127.9

71212NORPLAN1

5143SGDTS1

0.968127.7

5145GABRN/S1

0.963127.2

5994RSA_BPCB

0.969127.9

5995RSA_BPCC

0.970128.0

71054DWAALBO1

8063PHAKALANE

71055DERDEPOORT

1.5

5.5

1.5

5.4 1.5

1.3

1.5

5.4

0.966127.5

6.6

42.0

2.611 1.3 41.8

2.611

41.8

1.3

42.0

93035WATRS_D6

0.965127.4

93400WATRS_D5

0.965127.4

155.2

12.611

155.2

5.1

155.2

12.611

155.2

5.1

5123KOP132

0.965127.3

1.5

5.8 6.2

0.970128.0

6.4

2.1

4.7

5976THAM

0.982129.6

8001WOODHALL

0.951125.5

4.6

1.5

12.3 12.2

2.58006KGALE VIEW

0.967127.6

8.5

2.3

13.4

6.2

13.4

5.9

8007GOVT ENCLAVE

0.963125.2

21.2

5.7

10.6

0.2

10.6

2.910.6

0.2

10.6

2.9

1.5

0.3

5149BT_SA/A1

0.965127.4

1.5

5.85.5 0.965

127.4

5.5 1.5

2.1 4

.7

2. 14. 7

0.2

2.1

0.971128.2

2.0

5.3 6.5 5141BRDHR1

0.966127.5

8.9

12.4

8.9

12.2

8.9

12.4

8.9

12.2

121.2

5.1

21.2

4.3

121.5

5.1

21.5

4.4

1 145.8

11.0

45.8

9.3

45.8

11.0

45.8

9.3

5972GABRN/E1

0.967127.7

10.2

2.3

10.2

2.4

10.2

2.3

10.2

2.4

0.965127.4

13.3

4.4 4.7

13.3

4.4

13.3

4.7

12.5

3.9

12.5

4.5

2.0

5.3 4.5

2.0

4.5

2.0

4.5

2.0

5147BT_SA/C1

1 1

13.3

5122KOFF

2.1

1.5

11

5973ARPRT

7.9

54.554.9

8.2

2.1

5.5

5993RSA_BPCA

4.7

2.1

1.5

5980GABRN/S1

0.97910.8

21.0

5.7

13.9

2.9

0.9

75

114.1

4.0

14.1

3.5

0.9

75

16.9

2.0

6.9

1.7

0.9

75

16.9 6.9

0.9

75

17.0 7.0

1.72.0

1.72.0

5162MORPL/G1

1.02011.2

33.0

11 1.0

29.4

2.2

5163MORPL/G2

1.02011.2

33.0

2.2R 11 1.0

29.4

2.2

5164MORPL/G3

1.02011.2

33.0

2.0R 11

29.5

0.5

29.5

2.0

5165MORPL/G4

1.02011.2

33.0

1.9R 11

28.9

0.4

28.9

1.9

29.4

29.4

2.2R

5142SGDTS2

0.975214.6

5140MORPL2

1.018223.9

11.6

5996THAM2

0.980215.7

8019ISANG

0.985216.7

112.2

12.0

112.9

8.9

5137ORAPA

SW

20.5

5138SERUL2

1.018224.0

2.9

6.2

2.9

6.8

5736PHOKJ2

1.016223.6

10.0

0.0

25.9

2.0

26.0

14.9

57.7

3.5

57.0

35.0

48.6 48.0

29.6

8060MAUN 220

1.000220.0

34.3

9.2

34.4

15.1

5139SLPKW2

1.014223.2

50.6

18.5

50.6

17.8

28.0 27.0

1

85.8

7.1

85.8

3.9

0.9

8751

90.0

7.5

90.0

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3.9

39.5

65.5

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0.9

875

0.9

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1.012222.6

63.263.6

1 1

32.6

99.2

37.8

1 1

32.6

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65.5

99.2

37.8

99.2 99.2

2.4 9.1

8065METSIMOTLHAB

0.979215.5

5.4

63.0

4.763.4

5.4

63.0

4.7

22.1

20.2

22.1

18.2

20.6 5.1

20.6

10.4

5961ORAPA220

1.018223.9

37.9

5.0

1 0.9

8

37.9

6.0

37.9

5.0

1 0.9

8

37.9

6.0

75.6

11.6

75.9

9.9

8076MAUN220

0.978215.1

28.8

6.811

28.8

6.2

28.8 28.8

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0.0

1 6.8 6.2 1

63.4

16283INSUKAM3

305.7

100.5

1 1.0

2

212.7

61.1

212.8

55.7

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16280SVCINSK

1.06318.6

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113.3

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106.6


infrastructure for cross border IPP supply to South Africa and this initiative has been emphasized and

broadened in terms of the Agreement in terms of Cooperation in the Field of Energy between the

Governments of South Africa and Botswana concluded on 28 August 2012 and revised in February

2016.

(Annexures 7 and 12)

4.8 Heritage

Heritage Impact Assessments (HIA) has been completed and approved.

(Annexure 30)

4.9 Proposed Project Timeline

It is anticipated the Projects will follow the estimated timeline below:

Milestone Project

Project development phase 12 months

Project implementation phase 30 – 36 months

COD FC + 45 months

Table 11 Project timeline

Registration on Coal IPP Programme 23 July 2014

STEAG Prefeasibility Study 05 September 2014

SAPP NDA & Technical Data 06 September 2014

Transmission Integration Studies Commenced 10 March 2015

Commenced Discussions with DoE 15 June 2015

MCM Memorandum of Understanding 02 March 2016

Dept. Energy Cross Border Determination 20 April 2016

Water Supply Pre-feasibility 15 May 2016

Land Application & Allocation 06 June 2016

ESIA Commenced & Registered 13 June 2016

Water Supply Feasibility (Morupule Complex) 18 November 2016

ESIA Scoping Report Submitted 30 January 2017

BPC Transmission Integration Approval 28 March 2017

EIA Environmental Scoping Report Approved 09 July 2017

MCM / MDCB Due Diligence 01 August 2017

MCM MoA (Coal Supply) 28 February 2020

IPP Feasibility Study (Commencement) 08 January 2020 Table 12


5 Project Structure

5.1 Project Ownership

Each Project is expected to have the following ownership structure:

Figure 10: Project Ownership Structure

The Investors will be the following Parties:

• ENRC up to 15% of the equity

• Strategic equity partner: 70% to 100% of the equity and/or

• Atlantic Energy Partners: up to 15% of the equity

5.2 Project Contractual Agreements

The Projects comprise the development, design, construction, commissioning, operation and

maintenance of 2 x 300MW coal fired power plants situated in Gaborone, Botswana together with

related interconnection infrastructure and all activities incidental.

The anticipated contractual structure is depicted in the following diagram:

Figure 11: Project Contracts


5.2.1 Engineering, Procurement and Construction Contract

The anticipated EPC contractual structure will be formalized with fully bankable Head of Terms

between the Project and the EPC contractor. All the Projects will follow the same structure.

The EPC contractor will be responsible under the EPC Contract for the engineering, design,

manufacture, supply of material and components, construction, installation, connection, testing and

commissioning of the Projects. The EPC Contractor will also perform any distribution and transmission

connection works.

Status The term sheet is currently under negotiation and will be finalised

just prior to bid submission.

Parties TBD

Scope Lump sum, fixed price, turn-key contract

Implementation Pe-

riod

54 months from NTP

Liquidated damages Performance LD cap TBD

Delay LD cap TBD

Aggregate LD cap TBD

Bonds

The bonds are to be finalized after the EPC contract has been finalised

Table 13 EPC contract summary

5.2.2 Purchase of Land

ENRC has been granted the land by executed decision by the Palapye Sub Land Board.

5.2.3 Joint development

ENRC has entered into a memorandum of understanding with AEP for the joint development of energy

facilities in Botswana.

5.2.4 Operations and Maintenance

The Project will enter into an operating, maintenance and service agreement. It is anticipated that the

O&M contract will last for the duration of the 30-year PPA.

The underlying O&M Agreement will ensure the following critical processes and procedures are

adhered to:

• O&M services will always be performed to fulfill Project Warranty obligations.

• O&M services will always be performed to maximize the service life of the Coal Fired Power

Plant.


• O&M services will be performed in accordance with: (A) the Technical Specifications &

Operating Manuals (B) Local site conditions, and (C) best industry practices and standards.

5.2.5 Regulatory and PPA

Substantial progress has been made in the South African regulatory environment towards

demonstrating the country’s commitment to introducing IPPs into the generation sector.

The Minister in consultation with NERSA has issued a Ministerial Determination in terms of section

34(1) of the Electricity Regulation Act and New Generation Capacity Regulations on 19 December 2012

in respect of the procurement of 7716MW of new base load IPP capacity (including 2500MW of local

and imported new coal base load generation capacity) in line with the IRP (the "Determination"). In

terms of the Determination, Eskom (or any successor entity designated by the Minister) has been

designated at the buyer of the electricity and the DoE has been designated as the procurer of the

electricity through an IPP procurement programme as contemplated in the New Generation Capacity

Regulations, which may include, where appropriate tendering processes, direct negotiation with one

or more potential developers or other procurement procedures.

This Coal Base load IPP Procurement Programme has been designed to procure the target of 2500MWs

of Energy to be derived from coal and to contribute towards socio-economic development and

sustainable growth, and to start and stimulate the participation of IPPs in the base load energy

generation capacity industry in South Africa.

5.2.6 PPA Term Sheet Progress

Substantial progress has been made with the South African Department of Energy regarding the

intricacies of a Cross Border PPA and the projects legal advisors – Norton Fulbright have taken the

existing South African coal based IPP PPA and revised this document in terms of a cross border IPP and

the main current points of discussion with the DoE area as follows:

SUMMARY OF KEY TERMS AND CONDITIONS

• The facility is to be located in Botswana, 280km North of Gaborone and approximately

5 km to the East of the Morupule Power Station.

• The facility is a 1200 MW coal fired power plant built in phases with the first phase

being 2 x 300MW and ultimately a total facility of 4 x 300 MW gross units.

• The PPA shall be for a 30 year operating period, subject to extensions.

• The Tariff will comprise of a US Dollar proportion and a South African Rand proportion.

These proportions are USD [80%] and ZAR [20%] respectively.

o Assuming a spot rate ZAR:USD of R15.31 to $1 and a PPA tariff 80% linked to

the USD, that will yield a tariff payable of ZAR [930] per MWh ([93] cents per

kWh) including [10] cents per kWh for grid connection costs.

• The gird infrastructure is required to be upgraded to allow the export of the facility’s

power generation:

o The facility shall sell the power at the point of gate of the facility,


o BPC undertake responsibility to complete the necessary grid infrastructure up-

grades from the power plant up to the border of South Africa,

o Eskom undertake responsibility to complete the necessary grid infrastructure

upgrades from the South African border to Watershed substation as well as

the applicable upgrades of Watershed substation as may be required.

• The facility plans to reach COD for the first phase of 2 x 300MW within 3 years of Fi-

nancial Close.


6 Project Economics

6.1 Overview

The Sponsor is in the process of securing non-recourse project financing for the ENRC Coal Fired Power

Plant Projects.

As such, the Sponsors have engaged with a limited number of lenders to secure the following the most

competitive terms for:

• Senior, non-recourse project finance facility;

• Subordinated/ facility;

• Senior inflation-linked debt facility;

• A VAT facility;

• Value-adding BEE financing, either JIBAR or inflation linked;

• A bid bond issue; and

• Such commitments from the potential lender as may be required under the REIPPPP.

The table below shows the anticipated total funding requirement per Project, with an accompanying

description of the facility type:

Facility Nature of Facility Estimated Facility

Amount (Rmn)

Senior debt Non-recourse secured credit facility with a Base Case tenor

to cover the construction period plus 30 years from COD,

available to fund project costs to completion of the

generation facilities.

20

Table 14 Type of debt facilities

6.2 Sources and Uses of Funds

The following table provides a breakdown of the estimated sources of funding and the expected

breakdown of costs to realise the projects. The Projects are expected to be funded by a combination

of debt and equity.


The Projects are expected to have a similar project economics and the following table provides an

indication of the anticipated sources and uses:

Sources & Uses ZAR

Sources R'000

Debt 20 300

Senior debt facilities 20 300

Equity 5 100

Equity Share Capital 5 100

Total 25 400

Uses

Construction costs 17 550

Development and owners’ costs 450

Financing costs and other provisions 7 400

Total 25 400

Source: Sponsors assumptions

Table 15 Sources and uses

6.3 Key Assumptions

6.3.1 Construction Period

The expected period for each Project to reach construction completion is as follows:

Project Name Construction Period (Months)

Unit 1 42

Unit 2 42

Table 16 Construction Period

6.3.2 Operating Assumptions

Coal consumption and cost:

Based on a plant gross heat rate between 21,630 kJ / kWh and 26,850 kJ / kWh respectively gross heat

value of coal between 21,630 kJ / kg and 26,850 kJ / kg, the annual coal consumption for the Project is

expected to be between 2.31 / million tons when both 300 MWel respectively 1.15 / million tons when

both 150 MWel units are operating based on low gross heat value of 21,630 kJ / kWh and 7,120

operating hours (according table 2.7).

Real landed price of coal is estimated to be less than US$ 15 per ton and comprises of the coal price at

mine mouth and transportation cost by a conveyor system.


Diesel:

Diesel is consumed during start-up operations. The assumed demand is 2 litres per MWh, the fuel price

US$ 0.85 per litre.

Quicklime:

Quicklime is used for desulphurization. The demand is approximately 1.350 /2.700 t/d at an average

sulphur content of 1.5 %. The estimated price is US$ 173 per ton.

Water:

The water-steam-cycle and other processes require water. The water demand, which will be supplied

by wells, is 59 respectively 119 m³/h. The estimated price is US$ 5 per m³.

Fixed operating costs:

Fixed operating costs comprise of:

• consumables,

• spares and others and

• staff salaries, housing and travelling.

Consumables:

Consumables include water treatment chemicals like hypochlorite, sodium chloride, anti-scaling agent,

ammonia, hydrazine, hydrochloric acid, sodium hydroxide and lime. Consumables cost is assumed to

be annually escalated by 0.5.

Spares and others:

Spares and others consist of consumables with an estimated cost of US$17,000 per MW and spare

parts with an estimated cost of 3% of basic investment cost.

Staff salaries:

Staff salaries have been derived based on the number of employees and man-month rates, which in-

clude all additional expenses, contingencies, margins and back-office services:

Table 17 Staff salaries


6.3.3 Financing Assumptions

Senior facility

The financing assumptions for the senior facility reflect the facility size set out in [source] above. For

illustrative purposes, the assumptions for the senior facility are set out in the table below.

Facility details Facility

Senior debt tenor (post COD) Years TBD

Debt service months – interest and capital

payment every [x] months Months 6

Interest and capital grace period Months 6 (not used)

Interest Rates

Base rate % 3 month JIBAR

All-in margins over base rate

During construction % TBD%

During operations % TBD%

[Source: Financial Model]

Table 18 Financing assumptions

6.3.4 PPA

The PPA governs the basis on which power will be sold by the Project Company as Seller to Eskom as

Buyer.

The PPA establishes the obligations of the Project Company in relation to commissioning and testing,

connection to the system, the appointment of an independent engineer, the independent engineer's

inspection and testing, the Project's completion and commissioning, the provisional unit commercial

operation date, the commercial operation date, the last commercial operation date, consequences of

a reduction in contracted capacity, coordination of connection with the NTC, dispatch arrangements,

metering and outages.

Provided that the Project Company has achieved commercial operations before the longstop date

under the PPA, the Project Company shall be paid a combination of Net Dependable Capacity

Payments, Commercial Energy Payments, Startup Payments and the reimbursement of use of system

charges for energy dispatched by the Project to the System.

6.3.5 Implementation Agreement

Under the Implementation Agreement the DOE guarantees Eskom's payment obligations under the

PPA. The Implementation Agreement also establishes the Project Company's Economic Development

Obligations in relation to the Project.


6.3.6 Transmission Agreement

This agreement sets out the terms and conditions upon which the Project Company shall undertake

the transmission connection works to physically connect the Project to the Transmission System and

establishes the basis for the parties to cooperate with each other in relation to the operational

interface between the Project and the Transmission System. The agreement permits the Project

Company to use the Transmission System for an initial connection charge and an ongoing use-of-

system charge. The use-of-system charge is refunded under the PPA.

6.3.7 Ancillary Services Agreement

To be entered into between the Project Company and Eskom.

6.3.8 Limestone Supply Agreement

To be entered into between the Project Company and the Limestone Supply Company to be confirmed.

6.3.9 Offtake agreement

The Project is governed by a 30-year PPA with Eskom. The SA government will provide a government

guarantee for Eskom’s payment obligations as well as a guarantee for a termination payment in respect

of government default. Buyer default termination payment will cover all outstanding payments under

the finance agreements, including hedge break costs. Equity compensation will restore shareholder

IRR to the base case equity IRR prior to termination. Contractor and Supplier costs will also be covered.

The PPA is for a coal base-load facility with a guaranteed minimum load factor of 85% of the declared

dispatchable energy. The IPP is partially compensated on an annual basis should it be dispatched at

less than this 85% load factor. Given the present shortage of generation capacity, and given the

expectation that generation units will be dispatched on a price-based merit system, it is assumed that

the power plant will run at a load factor of 90% throughout the term of the PPA.

6.3.10 Insurance Programme

The Project Company, EPC and O&M contractor will enter into and maintain the appropriate

insurances, in accordance with the requirements of the RFP documents, and subject to availability on

commercially reasonable terms.

6.3.11 Key dates and Schedule

The bid submission date is scheduled to be determined once the DOE release the updated IRP expected

in March 2018.This will be communicated in due course by DOE through a briefing note. The current

timeline is presented in the table below:


Milestone Date

RfP launched to Pre-Qualified bidders TBD

Last date for Bidders to submit written questions in

terms of clause 33 (Time for requests and clarifica-

tions) of this Part A (General Requirements, Rules and

Provisions)

TBD

Bid Submission Notification Date TBD

Bid Submission Date TBD

Announcement of Preferred Bidder TBD

Preferred Bidders to provide signed PB PD Undertak-

ings to the Department TBD

Commercial Close and Financial Close TBD

Scheduled COD TBD

Table 19 Key dates


7 Accounting and Tax

The accounting and tax assumptions are as follows:

Variable Unit Value

VAT rate % 14.0%

Corporate tax rate % 15.0%

Tax holiday Years -

Dividend Withholding Tax (DWT) % 0.0%


Table 20 Accounting and tax assumptions

7.1 Results: Base Case

The relevant financing results from the Base Case models are shown below.

Debt Cover Ratios

DSCR - Senior Debt

Min TBD

Average TBD


Table 21 Cover ratios


8 Financing Opportunity

8.1 Quality of the Sponsor

• Involvement of reference shareholder ENRC:

Coal energy expertise and strong commitment to coal

Expertise in structuring and closing project financings

• The Sponsor has completed successful projects as EPC providers

In addition to the Projects detailed in this PIM, the Sponsor has other projects in the pipeline that

they expect to bring to market.

8.2 Project Development Skills

The Sponsor has strong project development skills, with a solid track record of successful projects. The

Local developer will continue its involvement in the Projects in so far as Permitting and Authorisations

and other development components for Financial close are concerned.

8.3 Commercial Risk Structure of the Projects

The Projects have been structured to mitigate key risks:

• Construction risk will be managed by use of a fully wrapped, fixed price, turnkey and lump sum

EPC contract that provides for liquidated damages (time and performance) and other terms and

conditions suitable to financiers. A Market leading EPC contractor will be contracted to

undertake this role; and

• In addition the EPC contractor will provide the key O&M services under a long term

arrangement.

Documents

Botswana PIM - October 2019 · 2019. 12. 8. · PIM This Project Information Memorandum PPA Power Purchase Agreement . BOTSWANA IPP PROJECT 2 Energy & Natural Resource Corporation