25 Jun 2015 20:30pm
WINDHOEK, 25 JUN (NAMPA) The Namibian and German Governments on Thursday signed a Euros 45 million (approximately N.dollars 609 million) intergovernmental loan agreement.
With the agreement, the German Government-owned development bank, KfW, and the Namibia Power Corporation (NamPower) enter into a financial cooperation for renewable energy and energy efficiency.
It allows KfW to offer a loan to NamPower as per the terms and conditions agreed between the two parties.
Minister of Finance, Calle Schlettwein and German Ambassador to Namibia, Onno Hückmann signed on behalf of the two governments.
Speaking during the signing ceremony, Schlettwein said the proceeds of the loan will be used to fund the rehabilitation of the Ruacana Hydro Power Station and other power-related projects, including the expansion of the transmission network.
Given the power supply gap in our country, I am very pleased that this signing event is materialising today as we have been working hard for this moment to arrive.
This clearly demonstrates the friendly relations that exist between Namibia and Germany, and we are confident that they can be further strengthened and intensified, he said.
Schlettwein thanked the German Government for not only its continuous advancing financial means for Namibia's economic and technical development, but also for recognising and ensuring that the cordial relations between the two governments are valued, cherished and maintained.
On his part, Hückmann said the agreement lays the foundation for increased support by the German Government towards securing Namibia's energy security.
We very much welcome Namibia's plans of drastically increasing the contribution of renewable energy in its energy mix, he said, adding that the potential of renewable energy is huge.
In purely mathematical terms the sun, wind, water, earth and biomass provide thousands of times more energy that the world's population requires, he said, noting that there is probably no place on this planet better suited for solar, wind and biomass energy than Namibia.
The diplomat said Germany is happy to share her political and technical experience with Namibia and to financially support the Namibian Government in its pursuit of a sustainable energy mix.