Standard Bank Group together with their shareholder, ICBC, have put together financing for the building of a $1,6 billion new power station in Botswana, called Morupule Powersation. This will bring reliable electricity to millions of people in Botswana and save the country from having to import power from South Africa. It comes in the wake of Eskom switching off its power to Botswana to supply growing domestic demand in South Africa.

Standard Bank Group's involvement began when Botswana Power Corporation called in December 2008 for proposals from potential financiers to finance up to $800 million of the Morupule expansion project.

As part of the contract, the China National Electric Equipment Corporation (CNEEC), one of ICBC’s top corporate clients, was awarded a $970 million contract to supply and build a significant portion of the power station.

Standard Bank Group and Industrial Commercial Bank of China (ICBC) are arranging a US$825 million loan for 20 years, backed by a Botswana Ministry of Finance guarantee and a Sinosure guarantee covering the project's political and commercial risks. A US$140 million bridge finance facility will also be provided.

Standard Bank Group's work in providing the project finance for the power project was acknowledged internationally, with the deal being recognised as the “African Power Deal of the Year” by Project Finance International magazine.

Sector expertise	Infrastructure
Client	Botswana Power Corporation
Deal size	$1,6-billion
Duration	November 2008
Key features	The Morupule B Power Station project involves the installation of 4x150 megawatt coal-fired air-cooled units. Associated projects include water supply works and the construction of transmission lines and substations for the distribution of power to the rest of the BPC grid.
Connections	ICBC, Botswana Power Corporation
Noteworthy	This is the first major transaction involving Standard Bank Group and ICBC, which has a 20% stake in Standard Bank.