Ubombo Sugar Limited (USL) has reaffirmed its commitment to strengthening Eswatini’s energy future as the company signed a 40MW Power Purchase Agreement (PPA) with Eswatini Electricity Company (EEC) yesterday.
The agreement marks one of the fastest-moving power projects in the country’s history, progressing from tender to financial close in just 18 months.
Project Significance
Speaking during the signing ceremony at Hilton Garden Inn on Tuesday, USL Managing Director Muzi Siyaya described the milestone as a demonstration of what aligned institutions could achieve.
He highlighted the partnership between government, regulators, private investors, and financial institutions as a key factor in the project’s rapid advancement.
Siyaya expressed gratitude to the Minister of Natural Resources and Energy, Prince Lonkhokhela, for his leadership and strategic guidance in advancing Eswatini’s energy security agenda.
Investment and Economic Impact
The total investment for the project stands at E1.5 billion, with E900 million financed by local banks—a sign of strong confidence in Eswatini’s investment climate.
Construction activities are expected to generate approximately 500 jobs, with local companies already awarded significant contracts for civil works and power evacuation. A dedicated small and medium enterprise (SME) participation package is being crafted to ensure broader economic inclusion.
Timeline and Operational Goals
The co-generation project is scheduled to reach commercial operation in June 2028, supported by a strict penalty regime to ensure timely delivery.
“This is modern project execution at its best; disciplined, time-bound, and nationally significant,” Siyaya said.
Once operational, the co-generation plant is expected to:
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Boost domestic electricity generation capacity
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Reduce reliance on electricity imports
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Support tariff stability
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Enhance the competitiveness of Eswatini’s industrial sector
Siyaya also commended the Eswatini Energy Regulatory Authority (ESERA) for its rigorous regulatory process and EEC for its technical engagement as the off-taker.
Acknowledgements
He acknowledged the contributions of the Ubombo executive committee, shareholders ABF Sugar, Tibiyo Takangwane, and all negotiating teams for their commitment.
“Today, we add more than 40MW to the grid. We add momentum, confidence, and opportunity,” Siyaya said, affirming USL’s commitment to delivering the project on time and to the highest standard.
