Project to help achieve power self-sufficiency

The "Kudu Gas to Power" project, Namibia's biggest investment deal, is expected to make the country self-sufficient in power and initially create at least 2,000 jobs, according to a senior energy official. The project, expected to quadruple Namibia's electricity production, would also promote development in the southern region of Karas, where a gas-fired power station would be built, Namibian Minister of Mines and Energy Nickey Iyambo said this week. Officials from the Namibia Power Corporation, (NamPower), South African firm Energy Africa and the National Petroleum Corporation of Namibia (NAMCOR) signed a joint development agreement in the capital, Windhoek, on Monday. Energy Africa operates the Kudu gas field, located approximately 170-kilometres offshore from Oranjemund in southwestern Namibia. The project involves the development of the gas field by Energy Africa and NAMCOR, and the delivery of gas to an 800 MW gas-powered station in the Karas. Surplus power would be sold to Eskom, the South African power utility company. "About N $7 billion (US $ 1.1 billion) is being invested in the project, while Namibia's national budget is N $11.5 billion (US $1.86 billion) - this gives an indication of the amount of investment being made in the region," Rhidwaan Gasant, managing director of Energy Africa told IRIN. Besides employment there would be a number of spin-offs for Namibia, which has been dependent on South Africa for most of its electricity requirements. "Namibia will have enough generation capacity that will enable our power utility to expand the current transmission and distribution networks, which will give rise to industrialisation and, therefore, macroeconomic development," Iyambo said. "During the last 20 years, Southern Africa has not seen any new power stations being built, especially given the current economic development that is recorded in most of our countries," he added. Phase one of the project would be expected to begin generating electricity during the second half of 2009.