Erongo RED, DBN sign N.dollars 150 million financing agreement

29 May 2018 11:20am
WINDHOEK, 29 MAY (NAMPA) – The Development Bank of Namibia (DBN) and the Erongo Regional Electricity Distributor Company (RED) on Thursday signed a financing agreement of N.dollars 150 million for the electrification of Swakopmund’s mass housing project and waterfront energy supply.
The agreement will cater for Erongo RED’s second phase of electrification after previously having used N.dollars 250 million from DBN to finance the first phase, which upgraded aging distribution infrastructure to Walvis Bay.
In a media statement issued here on Tuesday, DBN Chief Executive Officer, Martin Inkumbi, explained that the distribution of electricity to families and individuals in affordable housing is a basic necessity for socio-economic wellbeing.
He said high quality of power supply to the Erongo Region is of national importance as it is currently a major transport and logistics gateway to Namibia by virtue of the port of Walvis Bay.
He added that mining, which is another major industry, also underscores the importance of the region and its contribution to the economy.
Inkumbi stressed that when viewed in an economic context, Swakopmund must be able to attract and retain employees in order for new enterprises to open and for existing enterprises to grow.
“In this way, the upgrade to the distribution network will have an immediate impact and will secure the future,” he noted.
He added that in order to attract commercial investment, Swakopmund and Erongo RED, have to demonstrate their commitment to providing enterprise and investors with the necessary infrastructure.
He further pointed out that although the bank is widely known for financing renewable sources of energy such as Omburu Solar Park and the Ombepo Wind Farm, DBN is also committed to financing the infrastructure for traditional sources of energy.
“Where there is sufficient energy, there is an environment that is conducive for enterprise as well as for acceptable standards of living,” he added.