The Industrial & Commercial Bank of China (ICBC) and South Africa-based Standard Bank would sign an agreement with the Botswana Power Corporation (BPC) this month 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 soon.

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.

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

The financing of the Moru-pule B power station, 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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