Following the signing of a Memorandum of Understanding (MOU) between BPC and South Africa’s Eskom, some 70% of capacity from the Mmamabula station is expected to be sold to the South African utility.

The project is estimated to cost $5.5 billion with construction of the plant due to begin in early 2008 and take 42 – 48 months. Mmamabula, located in a major coal-bearing region, is being developed by Canadian firm CIC Energy, which has formed a joint venture with Meepong Investment, and the UK’s International Power.

Eskom, meanwhile, is expected to continue investing in other generation projects to meet its growing demand, estimated at 2,000 MW annually annum for the next 20 years.