N$280 Million Loan for Erongo Red

Electricity distributor Erongo Red signed a loan agreement of N$280 million with the Development Bank of Namibia (DBN) on Friday at Walvis Bay.

The agreement foresees massive upgrading of electricity infrastructure in the region which is necessary due to massive economic and industrial development, especially in Walvis Bay and Swakopmund, and for construction of a substation at Arandis, as well as rural electrification. Speaking during the signing ceremony, the Chief Executive Officer of Erongo Red, Robert Kahimise, said this is the first time Erongo Red has sourced outside financing unlike the past when they financed their own projects.

He also said this was the first ever loan granted to Erongo Red and this clearly shows that Erongo Red is serious about development and investing in the region’s electricity infrastructure.

Kahimise said the loan will be used to finance major capital projects and ready Walvis Bay so that it can in future meet the ever increasing demand for electricity and minimize electricity constraints.

The upgrading of Walvis Bay will cost N$570 million of which Erongo Red will cover N$130 million and the balance by Nampower. Additionally N$70 million will be spent on upgrading and strengthening the internal electricity network.

Arandis will also undergo a network upgrade that will cost the electricity distributor N$70 million, followed by Swakopmund and several other towns

“Erongo is the catalyst for the economic drive in the region, especially at Walvis Bay which is undergoing massive developments that will transform the town to a fully fledged industrial hub,” he said. Kahimise explained that Erongo Red while positioning itself in such a way to complement government’s efforts to accelerate rural electrification is also readying itself to provide much needed support to major developments such as the Namport port expansion and mass housing project.

Source : New Era