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Funds for Namibia-SA link

Funds for Namibia-SA link

Namibia`s electricity utility, NamPower, has signed a N$320m ($57m) credit facility with the European Investment Bank for the development of the planned 400 kV transmission line between Windhoek and the border with South Africa. The agreement is part of a joint financing scheme to meet the N$870m project costs.

The 735 km long single circuit power line will help to establish a secure power supply for the whole country. It will run from the South African-Namibian border to the Auas substation near Windhoek via the Kokerboom substation near Keetmanshoop. The line will be constructed over a 30-month period by a ABB Powertech-Cegelec consortium.

NamPower will finance part of the project through its own funds and a bond issue. The Swedish International Develop- ment Agency has committed a concessionary credit of N$120m and a further N$50m under a bond enhancement facility. The French Development Agency will provide N$35m and the African Development Bank N$66m.

South Africa will extend the line by a further 900 km. With demand rising in Namibia, the power line will enhance supplies to the country and reinforce the existing 220 kV line from South Africa.

The development of the power line will be the country`s largest public works project.

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