Govt to go ahead with Kudu project

25 Nov 2014 20:00

The Permanent Secretary in the Ministry of Mines and Energy, Kahijoro Kahuure has said  Government is committed to make the Kudu project a reality despite admitting that that there are critical issues that need to be addressed.
Kahuure who was speaking at the media briefing on the kudu-gas-to power project said Government, the National Petroleum Corporation of Namibia's (Namcor), NamPower and the Electricity Control Board and their key stakeholders, have firm confidence in the viability of the project.
“We are aware of the fact Kudu has always been a complex project with many critical issues that need to be addressed at the same time to enable the project to attract the necessary funding but we do not believe that the outstanding issues are insurmountable,” he said.
He added that, “The upstream and downstream partners are continuing to work with Government, in particular the Ministry of Mines and Energy and the Ministry of Finance on the equity and funding structure of the project as well as other outstanding critical success factors.”
According to Kahuure the Ministry of Finance has committed to funding 44% of Namcor’s 54% interest while the International Finance Corporation (IFC) will fund the remaining 10% of Namcor’s original equity.
“Let me confirm to you that The Kudu Project remains a strategic project for Namibia and one which will continue to be supported by Government, there is no other project that can deliver electricity by 2018 and this is the project that the country need to support to make sure that we don’t have power cuts and load shedding by 2018 as is the case with some of our neighbours,” he said.