HomeEnergy MineralsCIC Energy extends contract to fall in with IRP2010

CIC Energy extends contract to fall in with IRP2010

Camp site at CIC’s
Mmamabula energy
project in Botswana
Johannesburg, South Africa — MININGREVIEW.COM — 24 June 2010 – Coal exploration and development company CIC Energy “’ which is developing the Mmamabula energy project in Botswana “’ has extended its engineering, procurement and construction (EPC) contract to allow time for South Africa to approve its second Integrated Resource Plan (IRP2010).

The EPC contract was originally signed by Meepong Energy, a subsidiary of CIC Energy, with Shanghai Electric Group, in March 2009.

In a statement released here, CIC Energy said the extension maintained the fixed price for this lump sum turnkey contract for the engineering, procurement, construction, testing and commissioning of the power station for the Mmamabula Energy Project, but that the contract now extended beyond the period expected to be required for approval of the IRP2010 by the Department of Energy of South Africa.

“The extension of the EPC contract is a key accomplishment towards maintaining the Mmamabula Energy Project in a ready mode to be able to restart project development following the resolution of the regulatory matters in South Africa regarding new power projects,” said CIC Energy president Greg Kinross. “We remain cautiously optimistic that these regulatory matters will be resolved in the third or fourth quarter of this year, in conjunction with the gazetting of the IRP2010,” he added.

South Africa’s IRP2010 is expected to be a 20-year country plan for how South Africa will bring on new electricity supply to meet the projected demand for power from 2013 onwards. It is anticipated to include a combination of new government owned power stations and independent power producer (IPP) projects, like the Mmamabula Energy Project.

The first public consultation period for input parameters to the IRP2010 was completed this month, and a first draft of the proposed IRP2010 approved by the cabinet of the government of South Africa is expected to be released to the public in August.

The planned capacity of the Mmamabula energy project power station will be about 1 320 MW (gross) or 1200 MW (net), comprised of two super-critical 660 MW units (gross).