NamPower to raise USD496 million for grid investment
Namibia Power Corp's (NamPower) managing director Paulinus Shilamba said the company plans to raise NAD5 billion (USD496 million) in bonds and loans. Shilamba said the funds will be used for the firm's NAD13 billion investment project over the next five years, according to Bloomberg.
NamPower will invest in the expansion of its transmission networks as well as in power generation. The remaining balance for the five-year investment project will be taken from the firm's own cash reserves, the report explained.
The power company needs money to fund its share in a proposed USD1.2 billion power plant in Kudu. The plant will use natural gas from southern Namibia. A drought had caused the said utility to suffer a 70% output decline. The plant is also in discussion with Zambia, Zimbabwe, and Mozambique to import more electricity, the report said.
Shilamba said NamPower will tap its existing financiers for the required funding. He cited Germany's KfW Group, the French Development Agency, and the European Investment Bank as financiers for the said project, Bloomberg reported.