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Kudu gasfield development deal struck

21st February 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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Namibian power utility NamPower and Zambian private power utility Copperbelt Energy Corporation (CEC) have signed a joint-development and power-export agreement for the Kudu power project, in Namibia.

Kudu would be the first large power station to have been developed in Namibia by the country’s government. It will also be the first combined-cycle gas turbine power station of this size in the Southern African Development Community (SADC) region.

The development of the Kudu project is also of strategic interest to Namibia, as it will monetise the country’s gas resource and further stimulate oil and gas exploration in Namibia.

NamPower chairperson Maria Nakale says CEC’s expression of interest to offtake about 200 MW to 300 MW from the Kudu power project and the subsequent discussions and negotiations have been ongoing since 2011, with the term sheet negotiations having been concluded in October last year.

“CEC added considerable value to the Kudu project, as the offtake denominated in US dollars has lessened the burden on NamPower to manage the foreign currency exchange risk exposure. “Their further interest to participate in the Kudu project as investors/shareholders definitely demonstrates, without a doubt, their full commitment to ensuring that this project is successfully implemented and commissioned by end 2017 – latest . . . first quarter of 2018,” she says.

Nakale said

energy security in the region has been one of the preoccupations of political leadership at SADC level, as the inadequate generation capacity is hampering socioeconomic development.

“Foreign direct investment cannot be stimulated in the absence of secure and affordable electricity. Namibia has been a net importer of electricity for much too long. It is, therefore, of national strategic and security interest to ensure that we guarantee the reliable supply of electricity,” she notes.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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