The Botswana Government, in collaboration with the Ministry of Minerals and Energy (MME) and Botswana Oil Limited (BOL), has announced a call for proposals from qualified developers.
The solicitation is to identify a competent consortium to undertake the design, construction, financing, operation, maintenance, and subsequent transfer of the Ikaegeng Coal-to-Liquid Fuels (CTL) Facility.
This project, to be executed under a Public Private Partnership (PPP) framework, underscores Botswana’s commitment to diversifying its energy sources and leveraging its abundant coal reserves.
The Ikaegeng CTL Facility will be strategically located in Botswana, utilizing domestic coal as the primary raw material.
“The Botswana Government, through the Ministry of Minerals and Energy (MME) and Botswana Oil Limited (BOL), a government owned company, is seeking proposals from competent Developement to design, build, finance, operate , maintain and tranfers the Ikaegeng Coal-toLiquid Fuels (CTL) Facility, to be built in Botswana on a Public Private Partnership (PPP) basis.
The Facility will be underpinned by an off-take agreement, whereby BOL will purchase some of the petroluem products for sale into the Botswana market. The facility will be sited in Botswana, using Botswana coal as input material.
The porject will be tendered on a turnkey basis and BOL is looking for a single consortium to provide all aspects of the project:technical, design, environment, construction, commissioning and finacing under a PPP agreement. The project also entails operating and maintaining the Facility for a specified period, and ultimately transferring it back to the Botswana Government at the end of the operation and maintenance period.”
The initiative is further reinforced by an off-take agreement, wherein Botswana Oil Limited (BOL) will secure portions of the produced petroleum products for distribution within the local market.
The comprehensive tendering process seeks a turnkey solution, with the chosen consortium responsible for all project facets, including technical expertise, design, environmental considerations, construction, commissioning, and financing under the PPP agreement.
The envisioned model also entails the consortium operating and maintaining the facility for a specified period before transferring ownership back to the Botswana Government.
To ensure a transparent and efficient procurement process, Botswana Oil Limited (BOL) has disclosed that the solicitation will be conducted on a secure electronic platform.
Interested parties are required to register on the platform to participate in the competitive bidding process.
“The procurement process will take place on a secure electronic procurement platform which will require registration by Respondents.” BOL wrote in a release on 18th December, 2023.
