WINDHOEK, June 28 (Xinhua) -- Namibia's state-owned power utility, NamPower, has issued a request for proposal for a debt sponsor to help it register a 5-billion-Namibian-dollar (about 335 million U.S. dollars) bond program on the Namibian Stock Exchange to finance its renewable energy development.
NamPower is in advanced negotiations with three institutions to secure financing for its energy program, Managing Director Kahenge Haulofu said on Wednesday.
"We plan to bring on new renewable energy sources locally to replace expensive imports and reduce the cost of supply. We are in discussions and negotiations with KfW (Development Bank), AFD (French Development Agency) and the World Bank. The entities selected came through a selection process through which they were shortlisted," Haulofu said.
NamPower aims to introduce renewable energy with a capacity of up to 250 megawatts over the next five years by developing six projects to ensure the country's electricity security. Upon completion, the energy program would reduce the country's reliance on traditional energy sources and ultimately decrease its dependence on energy imports from other countries.
Namibia currently imports about 60 percent of its electricity from neighboring countries such as South Africa, Zimbabwe and Zambia, making the country vulnerable to price volatility and supply disruptions.
