Namibia Power Corporation (Pty) Limited (NamPower) and the Copperbelt Energy Cooperation (CEC) Africa today signed a joint development agreement (JDA) and power export agreement termsheet on the Kudu Power Project.
NamPower, which currently holds 100% equity in Kudu Power (Pty) Ltd, intends to farm out 49% to its strategic equity investors, of which CEC Africa, a Zambian private power utility firm, will take up 30%.
The local power utility company's board chairperson, Maria Nakale, noted: “This occasion marks a historical milestone; it is the first time NamPower has advanced the project to the extent of signing a JDA with a potential off-taker and investor in the Kudu project. It is also the first time the project has reached the stage of having advanced all the tenders on the project inter alia EPC tender, strategic equity investor tender, coordinating bank tender, as well as the operations and maintenance tender, which are at various stages of bid evaluations."
Kudu Power (Pty) Ltd is a special purpose vehicle, which was established in 2005 by NamPower to design, build, own and operate the Kudu Power Station at Uubvlei, 25kms north of Oranjemund.
CEC will also off-take 200MW-300MW of power from the Kudu Power Station, through a Power Export Agreement with NamPower. The JDA and PXA termsheet negotiations started in 2012 and were successfully concluded in October 2013.