7 May 2008 – Namibia’s Nampower has announced it is seeking a loan of US$17 million for the recapitalisation of the Hwange Colliery Company Ltd, one of the mines that supplies coal to Hwange power station.

CoalThe rehabilitation of the mine would allow for increased coal output to Hwange power station, from which Nampower currently imports 40MW.

Nampower and Zimbabwe Electricity Supply Authority (Zesa) last year signed a US$40 million power purchase agreement to be used for the rehabilitation of four of the Hwange generation units. As part of the agreement, Namibia would receive 150MW of power once the rehabilitation works had been completed.

According to Nampower managing director, Paulinus Shilamba, for the power supply to remain constant, there needed to be a sustainable supply of coal.

"For the station to function, it needs constant supply of fuel that comes from the colliery," he stressed.

Through the Namibian chamber of commerce, four Namibian businesses were recommended to Hwange for joint business. One of these four businesses will invest the required US$17 million in the Hwange Colliery.

According to Shilamba, an additional 40MW will be transmitted to Namibia as of June 2008.