Name and Location
Lower Orange river hydroelectric power scheme, Namibia.

Project Description
The project proposes to develop nine small hydroelectric power stations, ranging from 6 MW to 12 MW, along the banks of the Lower Orange river, with an expected installed capacity of 100 MW. Recent hydrological studies along the Orange river indicate a potential generation capacity of between 80 MW and 120 MW. By placing the turbines at strategic points along the river, the kinetic and potential energy of the river can be converted into electrical energy.

The concept is to divert the flow of the river, through both canals and tunnels, into several water turbines, which, in turn, will generate the electricity. The tunnels will be designed in pairs, some 50 m apart, over the required distance for each power station.

Between 66 km and 72 km of tunnels and 5 km of canals will have to be built, in addition to some 300 km of access roads to reach the power plants. Further, the project aims to construct three additional substations closer to the new hydropower stations.

The project will be developed in two phases. Phase one will include the construction of four of the nine sites, and the remaining five sites will form part of the second phase.

Value
Phase 1 of the project is estimated at €167-million. The project will be funded on a project finance basis through sponsors' equity and debt funding.

Duration
Not confirmed.

Client
The Orange Hydro Power Company, comprising the Namibia Power Corporation (NamPower) and Clackson Power as majority shareholders.

Key Contracts and Suppliers
The European Investment Bank (EIB) through its EU-Africa Infrastructure Trust Fund (finance).

Latest Developments
In late August 2010, NamPower invited interested companies and/or joint ventures to bid for the provision of consultancy services for four work packages, the first of which entails aerial surveying, geotechnical surveying and consultancy services for the tunnelling and canal works. Further, the utility also invited potential consultants to make provision for the mechanical and electrical works, civil and building works, as well as expertise with regard to financial and commercial model auditing and hydrological auditing.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
EIB, Yves de Rosée, email y.derosee@eib.org.
Clarkson Power, +27 13 755 3838, fax +27 13 753 2621 or cell +27 83 400 8488.
NamPower, Barcelona Soabes, tel +264 61 205 2396 or fax +264 61 205 2397.