The Industrial and Commercial Bank of China (ICBC) and South African-based Standard Bank would sign the agreement with the Botswana Power Corporation (BPC) next week to finance part of the $1,6-billion Morupule B power station expansion project.

ICBC president Jiang Jianqing said at the World Economic Forum on Africa that the Chinese Bank would sign the deal to provide $825-million for the expansion project on Monday.

The loan facility, which had been created through a partnership of the Standard Bank group and the ICBC, would be serviced over a period of 20 years, and was backed by a guarantee from Botswana's Ministry of Finance.

The expansion project came in the wake of South Africa’s Eskom reducing its power supply to Botswana to supply growing domestic demand.

The Morupule power station expansion project would be carried out by the China National Electric Equipment Corporation, which had been awarded part of the contract to supply and build part of the power station, and thus the deal with the Chinese partnership.

The power station, when completed, would have four 150 MW units, increasing Botswana's self-reliance in electricity.

The financing of the Morupule B power station was just one of 65 projects that the ICBC was currently funding on the African continent was evidence of China’s strong appetite for African investment opportunities, said Jiang.

The ICBC has a 20% stake in Standard Bank.

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