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Ministry of Minerals, Energy and Water Resources (MMEWR)
BOTSWANA POWER CORPORATION: MANAGEMENT CONTRACT
11/04/14
BOTSWANA POWER CORPORATION: MANAGEMENT CONTRACT

RE: BOTSWANA POWER CORPORATION: MANAGEMENT CONTRACT

1.    A decision has been taken by the Botswana Power Corporation Board and the Ministry of Minerals, Energy and Water Resources that BPC should become subject to a Management Contract for a period of three years to enable the Corporation to achieve performance turnaround and organisational transformation.

2.    The decision was taken pursuant to a Business Operations Review consultancy that was carried out on BPC by an energy consultancy firm based in Ireland, ESB International Limited in 2013.

3.    A change process for BPC is envisaged that was largely brought about by the Corporation’s transformation from a retailer of power to an electricity generator with a higher asset base due to increased generation and transmission infrastructure.

4.    It is imperative that BPC be transformed from its current operating status to a financially viable power utility and  a BPC 2018 end state strategy has been developed to achieve this.

The key performance indicators for the strategy are;

(a)   Sound financial performance;

(b)  Operational efficiency and effectiveness;

(c)   Appropriate organisational structure and highly skilled workforce;

(d)  Capacity to deliver and sustain strategic projects;

(e)  Appropriate governance, safety and quality strategies and frameworks;

5.    This is an opportune time for the project given the following developments in the Botswana electricity industry;

(a)   The external expertise will assist BPC to ready itself for competition in the electricity industry in line with Government’s decision to open up the market to independent power producers;  

(b)  With the imminent setting up of an electricity regulator, BPC will also be assisted to prepare itself to operate within a regulated environment.

6.    The Management Contract service provider shall take over the operations of Botswana Power Corporation for a three year period to facilitate the transformation. The management and staff of BPC will participate in the transformation process with a view to leading the transformed organisation at the end of the contract period. At the end of the three year Management Contract the service provider will deliver a transformed BPC in line with the agreed performance indicators.

 

……………………………………

S. O. Sebetlela

Board Chairman

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