The Khomas substation for the City of Windhoek has received financing totalling N$155 million, according to the Development Bank of Namibia (DBN).
Both Nampower’s Van Eck transmission substation and the current 66kV transmission network that feeds Windhoek are operating at their physical and operational limits. Since Windhoek’s supply capacity is limited to 160MVA, an upgrade of 90MVA is required to meet the city’s anticipated increase in power demand from businesses, industries, and households.
The proposed Khomas intake substation, according to Cllr. Illse Keister, chair of the City of Windhoek Management Committee, will ensure additional capacity to serve the anticipated demand.
North of Otjomuise Extension 10 is where the substation’s intended location lies. The City of Windhoek and Nampower will construct the substation. The substation’s construction and maintenance will be handled by Nampower. The additional capacity will result in money for the City of Windhoek from electricity charges. The loan to DBN will be repaid in part with these earnings.
The entire substation is valued at N$336 million, of which N$228 million is being contributed by the City of Windhoek. The City has already paid N$72 million from its own resources and the balance will be covered by a DBN long-term loan of N$135 million and a short-term loan of N$20 million to cover VAT.
Speaking about Development Bank’s role as a financier, CEO Martin Inkumbi said, the loan will be invaluable in sustaining Windhoek households, commerce and industry for the coming years.
He said DBN has over the past few years financed substantial land and affordable housing development projects in Windhoek, consisting of, among others, finance of N$390.5 million for the Ongos Valley development which will deliver over 4,000 houses in phase one, finance of N$57.8 million for 257 erven in Otjomuise Extension 5, finance of N$107 million to service 274 erven in Rocky Crest, finance of N$76.5 million to service 287 plots in Auasblick Extension 1 and N$31.6 million for 79 houses in Khomasdal Extension 16.
The expected increase in the number of households over the next 5 years will result in increased demand for electricity, which will put pressure on the City’s energy supply infrastructure, hence the need to support the expansion of energy generation and distribution infrastructure, Inkumbi concluded.
