Minister updates House on failed BPC solar project

Minerals minister Kenewendo regrets how government lost millions Botswana Power Corporation’s renewable energy subsidiary, the Lesedi Project, collapsed due to its failure to generate revenue, Minerals and Energy Minister Bogolo Kenewendo told Parliament. The multi-million pula venture was a 55-45 partnership between BPC and French company EDFI. Initially promoted as an innovative renewable energy initiative, the Lesedi Project has since been described as another white elephant, with government investing millions without tangible returns. Responding to a parliamentary question, Kenewendo said the project was intended to provide renewable energy services, mainly solar home systems, to rural communities across Botswana. She said total expenditure included start-up funding of $1.3 million, about P10 million (at the time), for office equipment, legal fees and solar home systems, as well as a government advance of P3 million in 2012. Kenewendo said BPC later contributed about P4.1 million toward winding up the company by March 2015, while the French partner contributed just over P1.8 million in August 2015. “Despite these investments, the project faced significant challenges,” Kenewendo said, citing low revenue generation caused by weak collection mechanisms and shortages of key materials such as solar panels, batteries and inverters. “By 2012, most operational activities had ceased, except for winding up and a few isolated installations,” she told Parliament. Kenewendo said the project contributed to Botswana’s renewable energy ambitions, but operational, financial and governance problems ultimately made it unsustainable. On the disposal of unused assets, she said offices in Gaborone and Maun were closed, while movable equipment, including office furniture, wood stoves and vehicles, was auctioned. Kenewendo said the first auction in December 2016 raised P127,000, while subsequent auctions in May and September 2017 disposed of remaining vehicles and office equipment. Other items were later transferred to BPC Corporate Services, she said. Kenewendo said she could not provide Parliament with the total number of beneficiaries. However, she said the project worked through six regional franchisees who served as the main customer interface, ensuring installations and services reached rural households and institutions. Chobe MP Oscar Mapulanga had asked Kenewendo to update Parliament on the project’s beneficiaries, challenges and the cost of mothballing the Lesedi Project. Kenewendo agreed with Mapulanga that it was regrettable that large public investments had been lost, draining government coffers without delivering sustainable value. The Lesedi Project was placed under liquidation in 2015. Kenewendo said BPC later recalled the franchising business model for review after concluding that it was not sustainable.

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Minister updates House on failed BPC solar project

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Minister updates House on failed BPC solar project

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