23rd Aug 2016 07:18
LONDON (Alliance News) - Tlou Energy Ltd Tuesday said it has renewed a co-operation agreement with General Electric International Inc and IK Holdings Pty Ltd for the delivery of a proposed power plant in Botswana.
The agreement provides the framework for co-operation between the parties in relation to sharing of infrastructure and technical support for the delivery of three key items.
The first item is a new 50 megawatt power generation facility. Tlou secured approval from the government of Botswana for that facility in early July and was given the green light to begin negotiating gas supply deals and to begin construction and operation.
The second covers the gas supply to the existing 90 megawatt Orapa power station owned by Botswana Power Corp and the third is for the proposed 300 megawatt, gas-fired power plant to be developed by both General Electric and IK Holdings.
The agreement has an expiry date of November 30, 2016, and may be terminated by any of the three parties at any time. The agreement does not bind any party to enter into any formal commercial arrangements, however provides a framework for co-operation to finalise the respective project tender processes and approvals and the roles and commercial outcomes for each party, Tlou said.
Tlou shares were trading up 5.0% to 0.105 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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