5 March 2009 – Financial crisis no cause to delay Kudu says NamPower

NamPower still intends to spend US$1 billion on the Kudu gas to power project, despite the challenging financial times, Reiner Jagau, NamPower power systems development general manager has said.

The expectation is that the first gas will be piped within three years of the final investment decision and contractual agreements should be signed by the end of 2009.

With an ability to produce electricity for 22 years and provide power to both Namibia and South Africa, the project is a joint venture between Tullow Oil and Nampower.  It involves pumping gas 170km offshore to an 80MW combined cycle power station.

 Jagau stated “. "It is clear that we have entered a buyer’s market again and suppliers are prepared to spend time to prepare bids and to entertain contractual conditions previously not preferred by contractors."  He conceded it would be "more laborious" to obtain the needed finance but was confident "but good and well packaged projects are still able to source the required funding."

Pre-qualified banks and consortia include Citigroup, France’s Societe Generale and a consortium of Bank Windhoek, Britain’s Barclays and South Africa’s Absa.