Development of a Privatization Strategy for Botswana Power Corporation and the Electricity Supply Industry

Botswana needed to rapidly expand domestic generation using private sector finance after power shortages in South Africa led to the collapse of cheap imports.

EMRC carried out a study to assess possible opportunities and options and develop an optimal private sector participation strategy through which the private sector can be involved in the operations of and services provided by BPC to deliver on the Government’s strategic objectives in line with the Privatization Policy of Botswana.

The initial attempt using Chinese supplier credits to construct Morupule B using FBC technology was deeply troubled and alternative approached that better managed risks to market expectations were proposed for Morupule C, Mmamabula and the rehabilitation of Morupule A.

As part of the project EMRC developed a detailed financial model. This model separated generation, transmission and distribution and also allowed for subsidy from Government for the Botswana Power Corporation.

Provided training to PEEPA on core privatization skills, using BPC’s case as a support for both in-class and on-the-job training.