NamPower gets N$1.1bn loan for major wind farm development

National energy utility NamPower has secured a N$1.1 billion loan from Germany to fund the establishment of the country’s first major wind farm, with a capacity to generate up to 40 megawatts (MW) of electricity and located 30 km North of Rosh Pinah.

The loan, which is being disbursed through the KfW Development Bank, is part of a N$2.7 billion Financial Cooperation Agreement on interest-reduced loans between Germany and Namibia signed on Friday by Finance minister Iipumbu Shiimi.

“This major wind farm provides a valuable learning experience for NamPower. It is supporting the ambitious targets of NamPower to increase the supply of renewable energy and to improve the energy independence of Namibia. In addition, the project contributes to Namibia’s aspirations becoming a hub for the production of green hydrogen,” German Ambassador Herbert Beck said.

The package also provides for a N$330 million NamPost Funding Facility in Support of MSE and Low-Income Households.

The NamPost facility aims to provide microcredits to predominantly rural customers, mainly women, to address the high demand for credit of vulnerable groups and provides access to loans specifically in order to alleviate the negative consequences of the Covid-19 pandemic.

The Water Sector Support Program II also secured N$1.25 billion in additional funding for the ongoing Namibian Water Sector Support Program.

Bert said the continuation of support intends to make a direct contribution to Namibia's adaptation to climate change.

“The program is aiming at the implementation of new water projects to improve access, quality and sustainability of water supply and sanitation in Namibia. Against the backdrop of more frequent droughts, the program strives also to reduce water losses thereby contributing to resource conservation and increasing the resilience of the population.

“I am confident that the agreed areas of our bilateral financial cooperation will make a real difference to the people of Namibia, as they will contribute directly to the implementation of the Harambee Prosperity Plan, the government‘s economic recovery and development plan,” he said.

To date, German development cooperation with Namibia amounts to roughly N$26.8 billion.

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Last modified on Tuesday, 28 June 2022 20:39

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