CIC Energy said on Friday the first power from its Mmamabula project in Botswana could be delayed until early 2014 after it failed to conclude a purchase agreement with South African utility Eskom.

CIC Energy said on Friday the first power from its Mmamabula project in Botswana could be delayed until early 2014 after it failed to conclude a purchase agreement with South African utility Eskom.

The Toronto-listed company had planned for commercial operation at the coal-fired power plant to start in early 2013 and ease power shortages in the region.

"Financial close cannot happen this year as previously anticipated," CIC president Greg Kinross said.

Eskom told CIC it could take until the end of its financial year in March 2010 to conclude discussions with the government on the best funding model for the utility, which it sees as a prerequisite for any agreement with CIC.

CIC has said that the Mmamabula coalfield on which the power plant is to be built could supply enough coal to produce up to 6000 megawatts for more than 30 years. - Reuters