GABORONE– State-owned firm Botswana Oil (BOL) has issued a tender seeking investors to build a coal to liquid (CTL) plant for production of fuel in the diamond-rich southern African country in a bid to secure its energy supply.
In a pre-qualification document dated June 16, Botswana Oil said it was seeking prospective companies to take on a “bankable feasibility study, design, finance, construct, own, operate and maintain a coal to liquids plant in Botswana”.
The deadline for the pre-qualification submissions is Aug. 2.
BOL said the plant had the potential to create an estimated 4,000 to 5,000 jobs as well as promote exports and the creation of newer industries. It will cost about $4 billion to build, according to BOL estimates.
Botswana’s current demand for petroleum products stands at 1.2 billion litres per annum, all of which is imported, mostly from South Africa.
The Southern African country has over 212 billion tonnes in coal resources but has only one operating coal mine.
BOL said it had received a number of unsolicited proposals from emerging companies in the oil and gas industry.