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Wednesday, August 24, 2016
Tlou Energy has renewed its cooperation agreement with General Electric International (GE) and IK holdings for the delivery of a proposed gas to power solution for Botswana.
The agreement provides the framework for cooperation between the parties in relation to sharing of infrastructure and technical support for the delivery of a new 50-MW power generation facility for which Tlou has been approved by the government of Botswana to negotiate gas supply, construction, and operation. It also includes gas supply to the existing 90-MW Orapa power station operated by Botswana Power, as well as the proposed 300-MW gas-fired power project to be developed by IK Holdings and GE.
IK Holdings has been prequalified by the Botswana Ministry of Mines, Energy and Water Resources (MMEWR) to submit a tender offer for a 300-MW greenfield independent power plant. IK Holdings’ tender is the only gas-fueled solution that has been prequalified by the MMEWR.
The agreement has an expiry date of November 30 and may be terminated at any time by any party. The agreement does not bind any party to enter into any formal commercial arrangements, however provides a framework for co-operation to finalize the respective project tender processes and approvals and the roles and commercial outcomes for each party.
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