Tlou Energy, developers of the Lesedi power project in Botswana, has announced a funding update for the project, which will deliver cleaner electricity in Botswana and southern Africa.
The project, utilising gas and solar power, has entered into advanced project finance discussions with a Botswana based entity.
According to the company: “The most advanced project finance discussions are currently with a very reputable Botswana based entity. Due to confidentiality, the Company is unable to name the entity concerned at this time.
However, we can confirm that their investment committee and board have discussed and are favourably disposed to Tlou’s proposal. They are now proceeding to get a third-party technical review of the project as part of their due diligence process. Once this report is assessed an investment decision can be made.”
Says Tlou’s Managing Director, Mr Tony Gilby:
“We already have a great relationship with this group and look forward to working closely with them to get the process concluded successfully and as soon as possible. This is an outstanding project, and with the right partners, we believe it can be an overwhelming success both for Botswana and our shareholders.”
The project, which will be developed in two phases, includes a phase one project involving the construction of transmission lines, sub-stations, grid connection and electricity generators. There is also the potential to drill additional gas wells. The transmission line will run from the Lesedi project to Serowe, a town approximately 100km from the plant and the nearest grid connection point. Initial generation is proposed to be up to 2MW and it is anticipated to cost $10 million.
Phase two is aimed at expanding electricity generation up to 10MW and will require additional gas wellsand the purchase of additional electricity generation assets. It is anticipated that phase two of the project will cost $20 million. Ultimately, the company plans to expand the project beyond 10MW.