Tlou Energy cajoles BDC to finance Lesedi project
Botswana Development Corporation ( BDC) is yet to decide on funding for Lesedi power project. The project is the country’s first CBM, developed by Tlou Energy and has reached several milestones. It needs financing to complete two phases on the company’s blueprint. Tlou Managing Director, Anthony Gilby said negotiations have been ongoing with BDC for several months, adding that BDC is seeking internal investment approval. “The company continues to work with BDC to successfully conclude a funding proposal that fits within BDC’s investment parameters,” said Gilby.
Though optimistic to receive BDC funding, the company has recently received an indicative term sheet for transmission line and transformer funding from a new potential financier. “The company will assess this offer alongside other potential financiers to evaluate the best possible option and funding partner going forward,” said Gilby. With two phases on the pipeline, the company is looking for approximately P341.40 million. According to Tlou Energy phase one required funding of USD $ 10m ( approximately
P113.80 million).
The funds will be used for transmission line construction, transformers, grid connection, electricity generators and potentially the drilling of additional gas wells. The 100 km transmission line will run from the Lesedi project to the town of Serowe where it will connect to the existing power grid. Initial generation is proposed to be up to 2MW of electricity,” said Gilby. The second phase will require USD $ 20m ( approximately P 227.60 million) for the expansion of electricity generation up to 10MW. “This will involve drilling additional gas wells and the purchase of additional electricity generators,” Gilby said.
Meanwhile, the company plans to expand the project beyond 10MW, upon completion of the two phases. Tlou believes the development of a CBM gas and renewable industry in Botswana will not only help the country manage the current energy shortage it faces but will also provide a new industry, and associated employment. “The Lesedi project will create an alternative and cleaner energy source for the country and its citizens,” said Tlou Chairman, Martin McIver. Botswana has a significant energy shortage and generally relies on imported power and diesel generation to fulfil its power requirements.