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DBN CEO Martin Inkumbi and Chairperson of the Windhoek Management Council Illse Keister sign an agreement to provide N$155 million finance for a new substation to ensure Windhoek’s sustainability. DBN Acting Head of Investments Heroldine Carstens looks on.
DBN has announced that it has provided N$155 million in finance for the City of Windhoek’s Khomas substation.
The existing 66kV transmission network that supplies Windhoek is reaching maximum capacity and Nampower’s Van Eck transmission substation has reached its physical and operational margins. Supply capacity to Windhoek is restricted to 160MVA so a 90MVA upgrade is needed to cater for forecasted growth in electricity demand for commerce, industry and households.
According to the Chairperson of the City of Windhoek Management Committee, Cllr. Illse Keister, the proposed Khomas intake substation will ensure additional capacity to support the forecasted demand.
The proposed site of the substation is north of Otjomuise Extension 10. The substation will be developed by the City of Windhoek and Nampower. Nampower will assume the responsibility of constructing and maintaining the substation. City of Windhoek will earn revenue through electricity tariffs from the increased capacity. Part of this revenue will be used to repay the loan to DBN.
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 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.