Home » News » Business » Power generation business uploads swiftly

Power generation business uploads swiftly

Publishing Date : 07 August, 2017

Author :

Discussions between African Energy, the Department of Energy, Botswana Power Corporation and the Ministry of Mineral Resources, Green Technology and Energy Security regarding and Generation and Export License for power sales to Zambia and the region, are at an advanced stage.

The Ministry of Finance and Economic Development has approved several fiscal incentives for the project as requested under a Manufacturing Development Approval Order.  The principal incentives are that the power generation business will be granted a five‐year tax holiday from its first year of commercial operation, followed by a preferential 15% tax rate for the life of the project. Sese Power will formalize this approval through a Tax Agreement to be approved by Botswana’s National Assembly, following which the Tax Agreement will become a Statutory Instrument that will form part of the Subsidiary Legislation under the Income Tax Act.

Terms of a Water Supply Agreement were finalized in the quarter and this agreement is expected to be executed during the next quarter. The approved 300MW Environmental and Social Impact Assessment for the Sese Integrated Power Project will ultimately be updated to seek supplementary approvals for up to 500MW of power generation (staged development of 2 x 225MW units) and the associated minor increase in volumes of coal mining and processing and airborne emissions.



Do you think the closure of BCL will compel SPEDU to double their efforts in creating job opportunities in the Selibe Phikwe?