18 October 2007 – Power from the Kudu gas-to-power project is expected to be fed into the grid by 2011, Margaret van der Merwe, an engineer at Nampower told a group of engineers and construction specialists in Windhoek on Wednesday.

It was also revealed that the final investment decision for the 800MW power project was expected in the first quarter of 2008.

"Delays in this power project have come in due to the complexity of having to conclude several power supply and purchasing contracts," she said. "The important issue here is whether these contracts are to be concluded in US dollars or in local currency."

Van der Merwe was speaking at the first FIDIC contract system course to be held in Namibia. FIDIC is the French abbreviation for the International Federation of Consulting Engineers.

Course material covers concluding contract systems for international infrastructure projects and is attended by experts from Namibia, South Africa and Japan – all interested in being involved with the $1.2 billion Kudu gas project.

The project will be made up of three components – bringing the gas onshore, the power station and a bi-directional gas pipeline from Orangjemund to the Cape.

Because the contracts for the various project components are multi- faceted, they will be prepared according to FIDIC contracts standards.

Approximately 1 500 jobs will be created during the three year construction phase.

"The technology of a combined cycle gas turbine (CCGT) power station is new in southern Africa," said Paulinus Shilamba, NamPower managing director. "The time has come for Namibians as contractors, sub-contractors, consulting engineers and service providers to be prepared and deliver services at the levels and specific contract conditions and standards that are required for such multi-billion projects like Kudu gas."

The course was prepared by NamPower with co-sponsors and presenters from Dewy & LeBoeuf from Britain, ESB International from Ireland and Ernst & Young from South Africa.