THE governments of Namibia and Angola have finalised a N$4-billion agreement to build the Angola-Namibia Interconnector.
The deal, signed in Luanda on 14 April, activates an infrastructure project that will link Angola to the Southern African Power Pool for the first time.
Namibia is solely financing the total project cost of N$4 billion through its National Energy Fund.
NamPower says the significant capital outlay allows Namibia to build and own essential infrastructure even within Angolan territory.
“The N$4-billion total cost is a strategic investment in our future. By funding this through the National Energy Fund, we are fulfilling our mandate to ensure energy remains both accessible and affordable for all Namibians, while building the backbone of a regional energy market.”
The financial structure includes a negotiated tariff that allows Namibia to recover its investment costs over time, effectively turning the N$4-billion expenditure into a long-term asset.
The interconnector includes a 160km transmission line (400 kV) running between the Cahama substation in Angola and the Kunene substation in Namibia.
It includes a 270km supporting line in Namibia connecting Omatando and Otjikoto.
The N$4 billion will also fund a high-tech infrastructure, including 400kV/330kV transformation systems and a static var compensator in the Kunene region to ensure voltage stability.
NamPower managing director Simson Haulofu says the ‘Anna’ project creates an opportunity to share resources effectively.
“As demand across the Southern African Development Community region rises, we cannot afford to be reactive.
This N$4-billion commitment is a central pillar of our 2026 to 2030 strategy; it’s about ensuring that as the Southern African Power Pool evolves, Namibia isn’t just a participant, but a leader in regional energy security,” he says.
With the ink dry on the power purchase agreement, NamPower has already moved into the execution phase.
Environmental clearances have been obtained, and transmission line routing studies are currently underway.
The N$4-billion project is expected to deliver 300MW of firm power to Namibia.
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