| Notes |
The Company anticipates announcing the selection of the Engineering, Procurement and Construction (“EPC”) contractor for the Mmamabula Energy Project (the “Project”) shortly.
Discussions with Eskom Holdings Limited and Botswana Power Corporation on Power Purchase Agreements (“PPA”) are ongoing. The Bankable Feasibility Study for Phase One of the Project is expected to be finalized on the conclusion of the definitive EPC contract and the signing of the PPAs. All the technical components of the study are now substantially complete.
Since the Company’s Project schedule update last fall, strong demand for power plant builds and prevailing engineering resource constraints, even with the world’s largest contractors, have continued to increase lead times for power plant equipment and construction services. The Company today announces further revisions to the Project schedule of approximately four to six months. Revised schedule estimates are as follows:
Financial Close for Phase One of the Project is targeted for the fourth quarter of calendar 2008, immediately followed by the commencement of construction, also in the fourth quarter. (Financial Close is the date of the execution of definitive project loan agreements and the satisfaction and/or waiver of all conditions precedent to the advancement of funds.) The PPAs and definitive EPC contract will be signed prior to Financial Close.
Commercial operations of the first unit of the power plant is expected in late 2012 / early 2013. The second and third units of Phase One are scheduled to come on-line at six month intervals following the first unit.
New legislation in Botswana to facilitate the Project has received approval from the Government of Botswana cabinet and passed the third and final Parliamentary reading. These bills to amend the country’s Mines and Minerals Act and Electricity Supply Act will become law following Presidential approval and gazetting.
The Mmamabula Energy Project is one of the few major projects that can meet the urgent demand for new baseload capacity in Southern Africa.
[ Retrieved on 04 FEB 2008 - http://www.cicenergycorp.com/investor_relations/press_releases/index.php?&content_id=130 ] |