Financial close for 60 MW Mmadinare Solar Complex in Botswana

Scatec ASA has reached financial close for the second phase of 60 MW of the 120 MW Solar Complex located near Mmadinare, close to the former mining town of Selebi-Phikwe, 400 km Northeast of the capital Gaborone, Botswana.

Scatec has signed a 25-year power purchase agreement (PPA) with Botswana Power Corporation for a 60 MW solar PV facility in the Mmadinare District. In Q3 2023, the project was expanded by an additional 60 MW, bringing its total capacity to 120 MW. The estimated total capital expenditure for the 120 MW project is BWP 1.5 billion (USD 108 million) with an estimated engineering, procurement, and construction (EPC) contract value to Scatec of BWP 1.2 billion (USD 88 million). The solar power plants are estimated to be financed by BWP 1.0 billion (USD 73 million) of non-recourse project debt, and the remainder by equity from Scatec. Financing for the projects will be provided by the First National Bank of Botswana (acting through its Rand Merchant Bank division) and the World Bank’s International Finance Corporation (IFC).

Scatec fully owns the project and will serve as the EPC contractor, as well as the asset manager (AM) and operations and maintenance (O&M) provider. Scatec’s South African team will oversee the construction and operation of the solar power plant. Once operational, the plant will prevent approximately 48,000 tons of CO2 emissions annually and supply clean energy to around 20,000 households.