P-NA-F00-004

Project Details
ID: P-NA-F00-004 Name: 400KV INTERCONNECTOR PROJECT Status: Completed Country: Namibia
Sector: Power Approval date: 29-avr-1998 Task Manager: FIKRU Bizuneh, RDGS4
Total cost: 144110000
Currency: UAC
Source(s) of financing
AfDB: 28107000
Cofinanced: 61107000
Government: 54896000
Implementing Agency: NAM POWER Location: THROUGHOUT THE COUNTRY

Objectives

THE OBJECTIVE OF THE PROJECT IS TO STRENGTHEN THE INTER/ CONNECTION BETWEEN NAMIBIA AND THE REPUBLIC OF SOUTH AFRICA (RSA) TO ENABLE NAMIBIA TO IMPORT ADDITIONAL ELECTRICITY IN THE SHORT-TO- MEDIUM-TERM AND TO FACILITATE THE LINK WITHIN THE SOUTH AFRICAN POWER POOL (SAPP) FOR POWER EXCHANGE IN THE MEDIUM-TO-LONG-TERM.

Description

THE MAIN COMPONENTS OF THE PROJECT COMPRISE THE FOLLOWING: A. CONSTRUCTION OF 400 KV LINES A.1 NAMIBIA SIDE A.2 RSA SIDE B. ERECTION OF 400 KV SUBSTATIONS (NAMIBIA SIDE) B.1 SUBSTATION ARRANGEMENT B.2 TRANSFORMERS AND REACTORS B.3 STATIC VAR COMPENSATOR (SVC) C. WAYLEAVE COMPENSATION D. PROJECT MANAGEMENT ON APPROVAL OF THE LOAN, THE BANK WAS TO FIANCE COMPONENT B.2 AND B.3. HOWEVER, NAMPOWER CANCELLED PART OF THE LOAN EARMARKED FOR COMPONENT B.3 (STATIC VAR COMPENSATOR) AND REDUCED THE LOAN AMOUNT TO ZAR 65 MILLION.

Benefits

THE PROJECT WILL MAKE AVAILABLE ADEQUATE AND RELIABLE POWER TO THE VARIOUS ECONOMIC SECTORS THUS PROMOTING EMPLOYMENT AND MINIMIZING THE UNSERVED ENERGY INTO THE VARIOUS ECONOMIC SECTORS. THE PROJECT WILL ALSO ENABLE NAMPOWER TO ACCOMODATE THE MAJOR INDUSTRIAL AND INFRA- STRUCTURAL LOADS AND THE YEARLY AVERAGE GROWTH OF 5% IN THE MEDIUM TO LONG TERM. WHEN THE PROPOSED PROJECT IS IMPLEMENTED, THE LOSSES WILL SUBSTANTIALLY REDUCE AND THE RELIABILITY OF THE NETWORK WOULD IMPROVE. THE STRENGTHENING OF THE GRID WOULD ALSO MAKE AVAILABLE THE REQUIRED LEVEL OF ELECTRICITY TO THE URBAN HOUSEHOLDS AND CONTRIBUTE TO THE EXTENSION OF THE GRID TO RURAL AREAS.

Rational

THE PROJECT IS TECHNICALLY SOUND AND INVOLVES MINIMUM NEGATIVE ENVIRONMENTAL IMPACTS. THE PROJECT WILL MEET THE FORECAST SUPPLY DEFICIT (2000/2001) IN NAMPOWER'S GRID. IT WILL ALSO IMPROVE THE TECHNICAL NETWORK PERFORMANCE THROUGH INCREASE IN NETWORK RELIABILITY AND STABILITY AND REDUCTION OF LOSSES. ADDITIONALLY, IT WILL SERVE AS A TRANSMISSION FACILITY POWER EXCHANGE IN THE SAPP IF KUDU GAS FIRED AND EPUPA HYDROPOWER STATIONS ARE DEVELOPED IN NAMIBIA.