Germany Funds Hydro-Power Plant

Desie Heita

31 May 2011

Windhoek — Germany has availed several hundred millions in Namibian dollars towards the ongoing development of the Orange River Hydro-Power Plant.

The money is part of the N$1, 253 billion the German Government is advancing to Namibia for the 2011/2012 financial year as ‘official development assistance’. The money for the Orange River Hydro-Power Plant is in ‘concession loans’.

National energy utility, NamPower, says the lower Orange River holds potential for an additional generation of between 80 MW and 120 MW.

The first phase of the feasibility study for the development of a small-scale hydro-power plant along the lower Orange River has been completed.

The next step is for the conclusion of environmental and technical studies that would enable decisions on the project site and tariffs.

NamPower will also earn carbon credit from the hydro-power plant, as there would be no use of water abstraction or water regulation.

There would be no dam constructed either, and the power generation would use river flow potential. There would also be water abstraction for agricultural purposes.

National Planning Commission (NPC) Director-General Tom Alweendo signed the N$1,254 billion official assistance agreement with the German minister for economic cooperation and development Dirk Niebel in Berlin last week.

The two met for consultation on the ongoing development cooperation between the two countries on May 23 and 24 in Germany.

The post-statement says 60 percent of the N$1,254 billion official development assistance will be made up of grants in the shape of financial or technical cooperation.

This amounts to about N$750 million. “Whilst the lion’s share of those financial means is being invested in natural resources, transport, sustainable economic development, new emphasis has been placed on education,” said the statement.

Polytechnic of Namibia and the University of Namibia will also receive N$150 million for several projects and components, including the expansion of their engineering faculties. Namibia and German signed this specific agreement early in May.

‘Economic development is a prerequisite for sustainable development and in order to achieve this, improvement of the standard of education is indispensable,” said Niebel.

The cooperation between the two countries will in future include vocational training and more support for tertiary education, because of the absence of a skilled labour force in the country.

The German minister says Germany pledged to support management of natural resources, because “the protection of the ecological resources of Namibia as a foundation for economic development via tourism, mining and agriculture, is the focal point of [the] cooperation”.

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