Staff Reporter
THE Namibia Power Corporation (NamPower) recently held a groundbreaking ceremony to mark the start of construction on the Otjikoto Biomass Power Station, which is expected to be commercially operational by 2027.
“Today, we begin a new phase in a journey that began about ten years ago with the concept study on the Biomass Project. The transition from development to execution phase demonstrates NamPower’s commitment to a greener future and our shared hope to create economic growth here in the Oshikoto and Otjozondjupa regions, and the country at large,” Kahenge Haulofu, Nampower’s Managing Director, said.
Haulofu announced that NamPower has approved a total budget of N$2.64 billion for the project, including N$2.3 billion for constructing the power station. He added that the facility, set to be built near the Otjikoto Substation outside Tsumeb, aims to deliver cost-effective baseload electricity by utilising local resources supplied by farmers and contractors in the area.
“Our vision for this power station, however, is not only about producing electricity. It is about bringing growth and prosperity to Oshikoto region, Otjozondjupa region and surrounding communities. The power plant for which we are breaking ground today will create jobs, bring in new skills, and activate fresh opportunities for local businesses, thereby allowing them to thrive. For the local business community, the project will open doors for growth, partnerships, as well as new beginnings,” Haulofu said.
He emphasised the project’s additional benefits, including increased savannah for livestock farming, which supports agriculture, and enhanced revenue streams for the government through taxes, levies, and spin-off economic activities stemming from reduced reliance on electricity imports. He also expressed hopes that the power plant would help revive the viability of farms for generations to come.
“When the power station becomes operational, we urge you to comply with the environmental safeguards that have been put in place. This will ensure the long-term sustainability of the project and build on the great work done by Ministry of Environment, Forestry and Tourism in setting environmental best practices for the country,” he urged.
Haulofu expressed gratitude to the project’s partners for their commitment. He highlighted the French Development Agency (AFD) as a key partner, revealing that they are the project lenders for an amount of €100 million and have assisted NamPower in securing several grants towards the project.
He also thanked the Mitigation Action Facility (MAF) for awarding a €25 million climate grant in recognition of the project’s ambitious objectives, the French Facility for Global Environment (FFEM) for a €3 million grant to support environmental research and capacity building, and the Namibian government for its legislative support and financial contribution of N$400 million.