Financial Strain at BPC Leaves Contractors Awaiting Payment

Financial Strain at BPC Leaves Contractors Awaiting Payment. The Botswana Power Corporation (BPC) continues to face financial pressure, with Minister of Minerals and Energy Bogolo Kenewendo confirming that the utility owes P3.72 million to five Small Works Contractors for completed projects dating back to 2020. The disclosure was made in Parliament, where concerns were raised about delayed payments to local service providers.

According to the Minister, the delays stem from several operational and financial factors that have affected BPC’s liquidity. One of the primary challenges is the high cost of importing electricity, which has placed additional strain on the corporation’s finances. Kenewendo noted that the situation has been compounded by the absence of electricity tariff adjustments over the past three financial years, limiting BPC’s revenue growth during a period of rising costs.

In addition to financial constraints, Kenewendo said some of the outstanding payments remain unsettled due to technical issues encountered during project commissioning. These issues have slowed down the verification and acceptance stages that must be completed before invoices can be finalised and paid.

To address the ongoing challenges, BPC has implemented several internal measures aimed at stabilising its operations. These include cost containment initiatives, the temporary suspension of non critical purchase orders, and improvements to contract closeout processes. The Minister also highlighted the corporation’s contractor support scheme, where small contractors receive materials on loan. In some instances, delays have occurred when materials were not returned or properly accounted for, adding an additional layer of complexity to the payment process.

Kenewendo told Parliament that the tariff adjustment introduced in July 2025 is expected to ease some of the current financial pressure, potentially allowing BPC to improve its payment timelines going forward.

The issue remains under close watch, with policymakers emphasising the need to support local contractors who rely on timely payments to sustain their operations.