05 September 2014, Wndhoek – THE African Development Bank, which was commissioned by the Ministry of Mines and Energy to do a due diligence on the Kudu Gas Project, expects ‘positive economic returns’ from the project.
This was disclosed by Bank of Namibia governor Ipumbu Shiimi, when he addressed a discussion organised by the Economics Association of Namibia and Hanns Seidel Foundation in Windhoek yesterday.
Responding to a question, on the expected costs to the government on loans to fund the construction of Kudu, Shiimi said the study by the African Bank found that the economic benefits will be favourable.
The gas fired plant is expected to cost US$1,2 billion and will use natural gas from the Kudu fields off Namibia’s southern coast.
Early this year, NamPower signed an agreement with Zambian private firm, Copperbelt Energy Company, which will see the Zambian firm taking up 30% equity and buying power in the range of 200MW to 300MW from Kudu. NamPower will hold 51% stake in the plant.
The plant is expected to produce about 800MW to 900MW of electricity of which half will be consumed in Namibia and the rest will be exported.
Of the upstream partners, Namcor has 54% equity interest in the production licence, together with partners Tullow Kudu Limited (31% operator) and CIECO Namibia (15%).