POSCO Energy has won the preferred bid to construct two plants in a Botswana power project, the company said Sunday.

The 300-megawatt Morupule B Phase II Project was commissioned by the Botswana Ministry of Minerals, Energy and Water Resources through an international public tender. It is the first time for a South Korean energy company to enter the southern African market.

POSCO Energy formed a consortium with Japan’s general trading company Marubeni and entered the $800 million bid, with each company holding 50 percent of shares. The two companies are to jointly manage and maintain power plants 5 and 6 for the next 30 years.

GS E&C is to take charge of construction and plans to procure $600 million in project financing from banks in Korea and Japan.

Construction will begin late next year on the two plants, which are expected to be completed and operational by May 2020.

Botswana plans to set up power plants to produce 1,200 megawatts in the country by 2019 to wean off South Africa’s electricity supply.

(sangyj@heraldcorp.com)