CORRECTION: Tenders for Kudu gas project out in May

ATTENTION EDITORS: Story corrects third sentence from the end. The project is estimated to cost US.dollars 1.2 billion (N.dollars 12.6 billion), and not N.dollars 132 billion, as stated in earlier story. Below is the corrected version.

WINDHOEK: The tender process for the awarding of a third party in the construction of the Kudu power station is expected to be finalised next month.

The national power utility NamPower and Zambia’s power utility Copperbelt Energy Corporation (CEC) signed an agreement here during February, which contract states that NamPower will have a 51 per cent share, the CEC 30 per cent, while the rest will be offered to a third party.

The main elements of the project are the development of the Kudu gas field and construction of an 800 MW combined cycle natural gas-fired power station at Uubvlei in Oranjemund in the //Karas region.

“The Strategic Equity Investor (SEI)’s tender evaluation is expected to be finalised at the end of April, and the NamPower Board of Directors is expected to select the successful bidder during May 2014,” said Kudu power station Project Coordinator for Stakeholder Management and Project Promotion, Muyenga Muyenga.

He told Nampa here on Tuesday that the tender application will be submitted to the Tender Board of Namibia for consideration in the course of May this year.

Muyenga added that discussions with mining giant NamDeb for the power station site’s fencing-off as well as the availing of all necessary ancillary infrastructure within the restricted mining area such as power supply, water, sewerage connection, hostel accommodation at Uubvlei and other amenities are at an advanced stage of finalisation.

“NamDeb has to date been very supportive of the project,” he enthused.

Muyenga added that the discussion with the Ministry of Mines and Energy for the deproclamation of the area of the envisaged power station from being classified as a restricted mining area has also commenced, and the line ministry has given its assurance that this matter shall receive immediate and speedy attention.

Construction is estimated to commence in the first quarter of 2015, while the successful implementation and commissioning is scheduled for the end of 2017 – latest in the first quarter of 2018.

The project is estimated to cost about US.dollars 1.2 billion (N.dollars 12.6 billion), and aims to increase power-generation in Namibia.

The Kudu project will be the first large power station to have been developed in Namibia by the Namibian Government. When completed, it will feed Namibian and South African power grids.