Embassy of the Republic of Botswana
1531-3 New Hampshire Ave., NW
Washington DC 20036
Telephone: (202) 244-4990
Fax: (202) 244-4164

BOTSWANA DEVELOPMENT PROJECTS PROPOSED

 FOR

 PUBLIC PRIVATE PARTNERSHIPS

1.0.  INTRODUCTION

1. This presentation covers priority development projects that the Government of Botswana invites the private sector to participate in, through public-private partnership (PPP).  The projects include:-

*Botswana International University of Science and Technology,

*University of Botswana Expansion

*Four New Senior Secondary Schools

*Kazungula Bridge

*Airports Expansion (Sir Seretse Khama, Maun and Francistown.

* Power Supply (Morupule and Mmamabula) and

* Botswana Railways Upgrading.

II. GEOGRAPHY AND PEOPLE

1. Botswana is located in Southern Africa, bordered by South Africa in the South, Namibia in the West, Zambia in the North and Zimbabwe in the East. Botswana covers an area of 582 000 square kilometers and has an estimated 1.85 million people growing at the rate of 2.4% per annum and a literacy rate of 81%.  Membership of the Southern African Customs Union (SACU), SADC and African Union expands the market for Botswana based companies to over 120million people.

III.  GOVERNANCE AND ECONOMIC PERFORMANCE

1. Botswana is a young economy which got independence in 1966.  It is a multi-party democracy with elections held every five years. Freedom of speech, freedom of the press, freedom of association and equal rights for all citizens are enshrined in the country’s constitution. The last elections were held in 2004 and were declared free and fair by international observers.

1. Mining (diamonds) is the mainstay of the economy, accounting for approximately one third of gross domestic product.  The economy has enjoyed and sustained above average growth rates since independence with the 2004/05 growth rate being 8.1%.   Diversification of the economy critical for sustainable development and the Government is committed to increasing the role of private sector participation in the economy.  In 1995, the Government introduced a Privatization Policy to facilitate continuous restructuring and promote private sector participation in the economy through public-private partnerships.

1. Through Vision 2016, Botswana aims at prosperity for all its inhabitants. Botswana’s Vision defines prosperity in the context of; an educated and informed nation, safety and security, openness, democracy and accountability, morality and tolerance, prosperity, productivity and innovativeness, unity and pride that is compassionate, just and caring. Hence, the emphasis on human resources development focusing on science and technology, increased productivity, entrepreneurship and life skills; supported by prudent management of the economy and an outward looking industrialization strategy. Botswana prepares five year National Development Plans to guide development.

1. Botswana is a middle income country with a GDP per capita income of approximately US$4200.  International watchdogs, Moodys and Poors have rated Botswana AA during the 2005 ratings, an improvement from AB over the past two years.  Transparency International has voted Botswana the most transparent country in Africa and one of the most secure in the world for foreign direct investment.  These independent assessments are important sources for investors who are considering diversifying their investment portfolios into emerging markets.

III.  PROJECTS INDENTIFIED FOR PUBLIC PRIVATE PARTNERSHIP

EDUCATION PROJECTS

BOTSWANA INTERNATIONAL UNIVERSITY OF SCIENCE AND TECHNOLOGY AND SENIOR SECONDARY

1. The share of education in national budget has ranged between 20-25% since independence in 1966. Approximately, 43% of the 1.85 population is under 29 years of age. About one third of the total population is enrolled in the education system. Access to primary education currently stands at 98%. The Transition rate from primary to junior secondary is 100% while 61% percent of those graduating from junior secondary proceed to Senior Secondary Schools. The transition rate from senior secondary schools to tertiary level is only 7%. Botswana has only one University with a capacity for only 12, 000 students. There are Colleges of Education, Technical Colleges and Institutes of Health Sciences which create an additional 2, 000 places per annum in total.

1. The Government of Botswana operates a grant/loan scheme through which qualifying students compete for sponsorship to tertiary education.  Botswana has been placing students externally for tertiary education to augment local capacity, but the cost of such placement and the growing numbers of students makes the alternative unsustainable in the long run, hence the decision to establish the Botswana International University of Science and Technology and expand the University of Botswana by adding a Medical School. BIUST is expected to open in 2009 with 2500 students.

1. To redirect the education system towards science and technology, one third of students enrolling in Senior Secondary Schools are taking pure sciences starting 2005.  Five new senior secondary schools each with a capacity of 1500 students will be developed by 2009, to increase the transition rate to senior secondary education.  Construction at one of the schools (Good Hope), has already stared.   The increase in science major students means that the construction of the BIUST has become urgent.

JUSTIFICATION

1. The difference in technological advance accounts for much of the poverty and unemployment is the developing world. Improving access to education at senior secondary and tertiary level is important in enhancing Botswana’s capacity to absorb science, technology and innovation as well as competitiveness in the knowledge based global market.  The development of BIUST is intended to address the acute shortage of scientists. Any excess capacity will be offered to regional students in line with the SADC Protocol on Education which obliges member states to avail some of their educational capacity to partners.  The country's central location in Southern Africa, its economic and socio-political stability makes it ideal as an educational hub for science and technology education in the region.

TECHNICAL DESCRIPTION

11. The Botswana International University of Science and Technology will be developed as a world class “Center of Excellence”. Science and Technology education will also be exported to interested buyers in the SADC Region, Africa and the rest of the world. The BIUST will offer programmes in the liberal arts, science and technology and business studies. Undergraduate students would have the option to major in: Engineering, Business, Finance and Management, Science (Physics, Chemistry, Computer Science), Biotechnology, Environmental Management, Information and Communication Technology, Agricultural and Food Sciences, Mathematics and General Studies. Approximately 60% of the programmes offered would be science-based.

12. Four Senior Secondary Schools each with a capacity for one thousand, five hundred students (1500) will be built in Mogoditshane, Shakawe, Mmadinare and Nata.  Because they are located in major centers, Mogoditshane Senior Secondary School will not have boarding facilities while the other three will require students boarding facilities. Each school will have a health facility and 80 staff houses.

LOCATION

13. The BIUST is to be built on a 5 X 3.5 kilometre plot in the urban centre of Palapye. The plot has access to electricity, water, a rail line and other infrastructure. However it will requires servicing as it is virgin land.   Land is being identified for the four senior secondary schools, but the villages where they are located have adequate services.

FINANCIAL ANALYSIS

EXPANSION OF THE UNIVERSITY OF BOTSWANA

14. The University of Botswana has its origin from a tripartite campus system of Basutoland (Lesotho), Bechuanaland (Botswana) and Swaziland. From these humble beginnings, the University of Botswana has established itself in the region as one of the finest institution of higher learning. In 2004 the University completed its strategic plan “Shaping our Future”. The plan sets the strategic priorities which provide guidelines to the University’s future development to 2009 and beyond.

15. The main Campus of the University of Botswana is situated in Gaborone, the Capital City of Botswana. The Campus covers some 115 hectares of land. In 2001, the existing Campus master plan was re-configured and upgraded and update to cater for the expanded projected student enrolment figure of 15,000 full time students.  Currently, the enrolment is as follows:

Full time students                                  12,659

Part time students                                    2,009

Distance Learning students                       1,154

Total                                                       15,822

Student Residences

16. The on Campus residences for students have not been growing in line with the rising student enrolment figures which now stand at 15,822 (2006/07). Accommodation on Campus is 3,838 which represent 30.32%. The targeted figure is 7,500 which represent 50%, of the total full time students; therefore, there is a deficit of 3,662 on Campus residences. The University of Botswana, therefore, wishes to develop student residences on Campus for 3,662 bed spaces at a projected cost of P60,000/bed space which translates to P219,720,000 and a student Refectory at a projected cost of P55,000,000. The total thus needed for the two projects is P274,720,000. Land is available on Campus.

Maun Campus

17. Apart from the Gaborone Campus, the University has another Campus in Maun, a tourist stop over town on the edge of the delta in northwest of the country. This Campus covers 66.8 hectares of land and is currently occupied by the Harry Oppenheimer Okavango Research Centre (HOORC) which comprises of a few permanent buildings and portacamp structures that accommodates academic research facilities, administrative offices and a library. A physical master plan was completed in 2005, but a comprehensive academic plan is yet to be carried out. It is expected that when the academic macro plan for the Campus is concluded, it will develop into a hive of active space with fully fledged administrative facilities; expanded academic teaching and research facilities; resource facilities; student residences and refectories; staff residences; sports/recreation and infrastructure. An all inclusive estimation of the project cost is P2,000 billion. Development is expected to take place beginning of the National Development Plan 10 (NDP10) which kicks starts in 2009.

AIRPORTS IMPROVEMENTS PROJECTS

SIR SERETSE KHAMA INTERNATIONAL AIRPORT, GABORONE

SSKA Terminal Building Extension:

18. Sir Seretse Khama International Airport is located in Botswana’s capital, Gaborone. Consultancy Services for Design Review was done in 2001 but is now considered inadequate for the projected traffic for 2025.  The designs are therefore, being revised. The revision is expected to be completed in 6 months time after which tenders will be invited for detailed design. Terminal Building Improvement is a priority not only because of the inadequacy of the present facility, it is also expected to provide alternative facilities during the 2010 World Cup in RSA. The estimated cost is Pula 250 million or about US$ 41 million.

Construction of a Parallel Taxiway Linking the Terminal Apron to Runway 08 end Threshold and Extension of Runway to 4000m from the present 3000m.

19. For most part of the year, the prevailing wind direction is East-West and runway 08 is predominantly used for landing/taking off of aircraft. A dual low speed taxiway link connects the runway to the apron at a distance of 200m and 1900m from runway 08 threshold. Aircrafts have to hold at taxi holding position when another aircraft is landing or taxing on the runway 08 threshold for take off. This results in air traffic delays and uneconomical aircraft operations (uneconomical fuel usage). Apart from reducing the capacity utilization and efficiency of the runway, this is a cost to operators.

20. Normal airport layout provides for a parallel taxiway for efficient use of the runway. To match these standards and improve efficiency, construction of a parallel taxiway connecting the link taxiway to 08 end of runway has been proposed. The present runway is 3000 m long and 45m wide and is capable of receiving B747 or equivalent class aircraft with load penalty (i.e. cannot accommodate a fully loaded B747). It is therefore imperative to upgrade the runway for landing of a fully loaded B747 or equivalent class aircraft on intercontinental flights. This requires lengthening the runway to 4000m.

21. The Master Plan for SSKA guides the upgrading works. The proposed upgrading also meets the requirement for additional facilities for the proposed World Cup scheduled for 2010 in RSA, wherein SSKA can serve fully as an alternate airport to Johannesburg International Airport. The Design Consultancy for the Runway Extension and Provision of Parallel Taxiway is in progress and is expected to be complete by February 2007. The  Stage Report estimates the construction cost for the project at  P150 million or US$ 25 million. The total amount needed for the upgrading of Sir Seretse Khama International Airport is, therefore, US$ 66 million.

2.2. MAUN AIRPORT DEVELOPMENT

22. Maun International Airport which services Botswana’s tourism capital Maun, is the busiest airport in the country. Most passenger traffic is destined for the tourist destinations such as the Tsodilo Hills, Okavango Delta, Moremi Game Reserve, Chobe National Park and the Victoria Falls.  Tourism has been identified as having the greatest potential for the diversification of the Botswana economy.  The expansion of Maun Airport is critical for this potential to be tapped.

23. The Design Consultancy Services for Maun Airport Improvements at the existing site are ongoing and are expected to be complete by May 2007. The proposed improvement works involves development of a new parallel runway to accommodate second generation Boeing 737 aircraft on medium/long range flights. The present runway will become a taxiway. The proposed alternate airside layout will now comply with ICAO (International Civil Aviation Organization) specifications in that adequate land will be available to provide apron facilities outside flight strips. The main advantages are that the airport will now comply with ICAO safety standards, aircraft will not have to taxi on the main runway and the airport will be able to accommodate the increased demand.

24. A new terminal building will be constructed and the existing terminal building will be converted to offices for Departments of Civil Aviation and Meteorological Services. The existing apron will be strengthened and enlarged. The existing services and drainage system will be improved to accommodate the new movement areas that will be constructed. Other structures such as the security fence will be relocated. Sensitization meeting of the affected ward for relocation exercise has been done and assessment of the people/ property to be relocated is complete. The cost of construction as per the Stage Report will be P 252 million or about US$ 42 million.

FRANCISTOWN AIRPORT IMPROVEMENT

25. Francistown is the second largest city in Botswana a an important administration and commercial center for the northern part of the country. Francistown Airport requires improvement for operation of B 737 (all classes both on short/medium haul operations). The runway will be re-aligned with new link taxiway and apron, construction of new terminal building, control tower with technical building, new crash fire and rescue building, new approach road, improved navigational facilities and aerodrome lighting. The design consultancy is ongoing and is expected to be completed by October 2006. The estimated cost for the proposed improvements is P182 million or about US$ 30 million.

  KAZUNGULA BRIDGE PROJECT

 Background

26. The Zambezi River forms a natural boundary between Botswana, Zambia and Zimbabwe.  During the rainy season, it is 800 meters wide.  Currently a ferry is used to help people and vehicles cross the river.  With the increased volume of traffic between the countries, it has become necessary to build a permanent bridge to provide unrestricted movement within the region.

27. The Governments of the Republic of Botswana and the Republic of Zambia have agreed to promote free and unobstructed movement of both cargo and people between the two countries. This can only be achieved by providing an appropriate structure across Zambezi River at the Kazungula border crossing between Botswana and Zambia. This bridge will alleviate the current problem of unreliable and slow moving ferries which have been identified as a major bottleneck that hinders smooth and rapid economic integration among SADC Member States. Improving the flow of traffic at this crossing is critical as this border crossing plays a very important role in the economic growth of the region.

Project Location

28. The site where the Kazungula Bridge will be constructed is located immediately downstream of the confluence of the Zambezi and Chobe Rivers at Kazungula border post between Botswana and Zambia. The project site is located at the mid-reach of Zambezi river in Central Southern Africa, some 65 kilometre s upstream of the Victoria falls. The Zambezi River originates in the north-western region of Zambia and flows southward through the eastern area of Angola and western area of Zambia. It turns northeast some distance downstream of Livingstone, after passing through Zambezi Gorge; it flows through Lake Kariba and Zambezi Valley. After passing through the reservoir of the Carbora Bassa Dam, the river turns southeast and finally discharges into the Indian Ocean.  

 Technical Description

29. During the dry season, Zambezi River width is around 400m, and it widens to 800m during the flood season. The average depth of the river is about 7 metres in dry season and rises by around 5 metres during flood season. The terrains on both sides of riverbanks are very flat and spread out. During the flood season, they are covered with shallow floodwater.

30. The project length of the bridge and approach roads is 3 700 meters, composed of 720 meters for the main bridge and 2 980 meters for approach roads. As for the bridge type, the Pre-stressed Concrete Extra-dosed bridge type was recommended for the reasons of superiority in low construction cost, vertical gradient, concrete works and symbolic appearance.

Typical Cross Section

Carriageway         : 7.0 m

Shoulder     : 1.0 m each side

Sidewalk     : 1.0 m each side

Road Length

Botswana side      : 1,597 m

Zambia side                    : 1, 383m             

 Current Status/Progress

31. The countries of Botswana, Zambia and Zimbabwe signed a Memorandum of Understanding on 28^th August 2006 to jointly construct a bridge at Kazungula which borders the three countries across the Zambezi River to facilitate the free movement of cargo and people.

Total Estimated Cost

32. According to the Final Report on the Feasibility Study, the estimated construction cost is US$ 70.317 million for the bridge structure and US$30.549 million for the border control facilities., which is a total of US$ 100.87 million for the whole project.

BOTSWANA RAILWAYS (BR)

33. The Botswana Railways is a Government owned company responsible for the operation of railways in the country. It provides rail transport within the country and has rail links to South Africa and Zimbabwe.  Due to the growth of the economy, the expanse of the country, the company needs to increase its capacity and improve service through procurement of; new wagons, track maintenance equipment and to upgrade rail bridges. For this funding in an amount of US$ 250.7 million will be required over a 5-year period.

Breakdown of Estimated Cost

JUSTIFICATION

 Wagons

34. The wagons are required to satisfy existing demand as well as to address the projected growth in rail traffic.  Estimated price is US$ 150,000 per wagon.

Upgrading of Bridges

35. The acquisition of high capacity locomotives will result in higher axle loads of up to 25 tonnes/axle.  This will require the current bridges to be upgraded to withstand the anticipated load. Even at current levels, some bridges require upgrading to improve their upkeep and safety of operations.  The estimated cost of design and construction is US$ 29.0m.

 Hydrology

36. Some areas along the railway network are prone to wash-aways and require drainage improvement. This poses a serious risk to Botswana Railways.   Meanwhile, drainage systems on the highway adjacent to the railway line have been improved.  Therefore, there is a need to improve the drainage on the railway network to reduce the risk of wash-aways. The cost of the necessary drainage improvement is estimated at US$ 15.0 million.

Track Maintenance and Equipment

37. It is necessary to procure track maintenance equipment in order to be able to maintain the rail track to modern acceptable standards. The equipment to be purchased includes among others; track master’s multi purpose vehicles, tamping machine, etc. The estimated cost is US$ 8.5m.

Wagon Overhaul

38. Botswana Railways wagon fleet is overdue for overhaul this has to be taken as a matter of urgency.  The cost of wagon overhaul is estimated at US$ 17.5m.

POWER SUPPLY PROJECTS

 MMAMABULA EXPORT POWER STATION PROJECT

39. Government of Botswana has initiated discussions with the Republic of South Africa on the possibility of developing an Export Power Station in Botswana (Mmamabula coalfired) with the Republic of South Africa being the main purchaser of the power. Already there are two local companies, Meepong and Magaleng Investments holding exploration grounds over parts of the Mmamabula Coalfired.  Meepong/Coal Investment Joint Venture is the most advanced in exploration as they have already carried out pre-feasibility study.  Their aim is to eventually build a 3,600 MW Thermal Power Station. 

40. The estimated cost of the power station is US Dollars 4-8 billion which translates to over P40 billion.  To expedite the development of the Export Power Station, the Government of Botswana engaged the United States Technical Development Agency (USTDA), to undertake an investigative study on the development of the Mmamabula Export Power Station. The study will come up with recommendations on the long-term power generation capacity for Botswana. The study will commence in September 2006 and run for 12 months.

 MORUPULE POWER STATION EXPANSION PROJECT

41. Botswana Power Corporation (BPC), is a Government owned company, responsible for provision of grid power commissioned a study in October 2003 on the feasibility of expanding the power generation capacity of the thermal Morupule Power Station. The study was completed in November 2004 and recommended the expansion of the Morupule Power Plant. It is anticipated that the project will start during 2006/2007 and be completed in 2009/10, with an envisaged installed capacity of 400MW and at an estimated cost of about US$ 600 million.

SUMMARY OF PROJECT COSTS

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