08 February 2014, Windhoek – Namibia’s power utility NamPower and and the Copperbelt Energy Corporation (CEC), a private power utility in Zambia are scheduled to sign the Joint Development Agreement (JDA) and the Power Export Agreement Term on the Kudu Power Project in Windhoek today, NamPower announced this week.
NamPower currently holds 100% equity in KuduPower (Pty) Ltd, and it intends farming out 49% to strategic equity investors, of which CEC Africa will take up to 30%.
KuduPower (Pty) Ltd, is a special purpose vehicle that was established in 2005 by NamPower to design, build, own and operate the Kudu Power Station at Uubvlei, 25 KM north of Oranjemund.
NamPower announced this week that CEC will also off take between 200MW to 300MW of power from the Kudu Power Station through a Power Export Agreement with NamPower.
“The JDA and Power Export Agreement negotiations started in 2012 and were successfully concluded in October 2013, with the approval of both agreements by the respective board of directors of NamPower and CEC Africa,” NamPower said in a statement.
Kudu is seen as strategic project as it will be the only large power station in the country. NamPower says Kudu is a platform for the development of energy intensive, export oriented industries vital to the next phase of Namibia’s economic development.
NamPower says Kudu will have a substantial impact on Namibia’s balance of payment through increased export earnings and allow for the diversification of energy sources used for power conversion in both Namibia, South Africa and the rest of the Southern Africa region.
The Zambian firm has a a control centre on the Zambian Copperbelt and operates a network comprising transmission, distribution and generation assets.
Its assets comprise an emergency power generation capacity of 80MW, transmission and distribution network of 900 km of overhead power lines, 40 high voltage substations and electricity network carrying capacity in excess of 700MW. It operates an interconnector with the Democratic Republic of Congo (DRC), through which power is wheeled to Zambia, Zimbabwe and South Africa.