Thursday 18 June 2009

Aviva resists pressure to move to SA - Mmegi Mobile

Australian integrated energy company, Aviva, has resolved to locate its power station in Botswana, going against a request from Eskom to move the planned 1, 000 megawatt coal powered station across the border to South Africa.

Aviva, which is listed on the Botswana Stock Exchange, has a 90-percent interest in the Mmamantswe Project in eastern Botswana - an indicated 1.3 billion tonne resource. The company plans to develop an initial 1 000 MW power station using four-and-a-half million tonnes of coal per annum. In finalising various technical requirements for the project, Aviva last year began hunting for off-takers for the Mmamantswe Project. Last October, Eskom unconditionally qualified Aviva to submit a bid for the South African utility company's Independent Power Producer (IPP) Programme. However, to qualify for the IPP programme, which involves the supply of up to 4, 500 MW, producers had to be located in South Africa.

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