ECB gets N$1,8m for power investment study

THE Electricity Control Board (ECB) and the United States Trade and Development Agency (USTDA) last week signed a grant agreement to provide US$275 700 (around N$1,8 million) for technical assistance to formulate an electricity market model with focus on how to facilitate independent power investments.

The grant was awarded to the ECB at a signing ceremony between the ECB Chief Executive Officer, Siseho Simasiku, and the United States Ambassador to Namibia, Joyce Barr. As power supply continues to be a topical issue in the region amid fears of it diminishing and reaching greater levels of demand by 2007, rapid development in the country’s electricity sector is vital.Like most members of SADC, Namibia is preparing for 2007 to deal with the impending power deficit, and has called on private sector participation in the electricity industry.The USTDA grant will fund the independent power producers and investment market framework study, due to be completed by August 2006, and a national workshop to present the outcome of the study and solicit input from stakeholders for the preparation of a final report.The ECB will be responsible for the tendering process and appointment of the project consultants and the study will be co-ordinated by a national steering committee consisting of the ECB, the Ministry of Mines and Energy and NamPower.An American firm will be selected by the ECB to carry out the study, which firm will in turn recommend local private sector participation in implementing the recommended model.”The signing of this agreement could not have come at a better time than now when Namibia is faced with a great challenge of attracting investors to participate in the development of new generation plants and upgrading of the transmission network.”I have no doubt in my mind that this project will go a long way in creating a favourable environment for increased private sector interests and participation in the Namibian electricity supply industry,” said Simasiku.Ambassador Barr said her government had made energy sector activities a priority in SADC and an integral part of its support for the African Growth and Opportunity Act (Agoa).As power supply continues to be a topical issue in the region amid fears of it diminishing and reaching greater levels of demand by 2007, rapid development in the country’s electricity sector is vital.Like most members of SADC, Namibia is preparing for 2007 to deal with the impending power deficit, and has called on private sector participation in the electricity industry.The USTDA grant will fund the independent power producers and investment market framework study, due to be completed by August 2006, and a national workshop to present the outcome of the study and solicit input from stakeholders for the preparation of a final report.The ECB will be responsible for the tendering process and appointment of the project consultants and the study will be co-ordinated by a national steering committee consisting of the ECB, the Ministry of Mines and Energy and NamPower.An American firm will be selected by the ECB to carry out the study, which firm will in turn recommend local private sector participation in implementing the recommended model.”The signing of this agreement could not have come at a better time than now when Namibia is faced with a great challenge of attracting investors to participate in the development of new generation plants and upgrading of the transmission network.”I have no doubt in my mind that this project will go a long way in creating a favourable environment for increased private sector interests and participation in the Namibian electricity supply industry,” said Simasiku.Ambassador Barr said her government had made energy sector activities a priority in SADC and an integral part of its support for the African Growth and Opportunity Act (Agoa).