The extension of the contract is critical to the realisation of yet another milestone SADC project initiated by Zimbabwe, Zambia, Botswana and Namibia.
The project under the interconnector code, Zizabona, will result in an increase in electricity trade among the four participating countries.
The line will also enable the easy flow of the 150 megawatts expected from Zimbabwe to Namibia in the next five years as agreed under the US$40 million (N$290 million) PPA.
NamPower Mana-ging Director, Paulinus Shilamba, said, We are busy negotiating this contract which is likely to be extended 100 percent or by a portion of it. The line will actually provide a shorter wheeling route from the North to the Western Cape.
NamPower is hoping to have the contract extended for another 10 years. The extension entails changing the terms and conditions of the initial agreement.
Zizabona’s scope covers the construction of a 120-kilometre line from Hwange Power Station in Zimbabwe to Livingstone in southern Zambia.
That will be followed by the construction of a substation in Livingstone and a switching station in Victoria Falls in Zimbabwe.
Another 300-kilometre line will be constructed from Victoria Falls to Katima Mulilo in Namibia through Panda Matenga in Botswana.
Thus Zizabona, which will create the alternative route for power import from neighbouring countries, is expected to run concurrently with the rehabilitation of Hwange Power Station, NamPower says.
In May this year, the four countries signed a Memorandum of Understanding for the project that will provide an alternative route and help decongest the existing central transmission corridor.
To be implemented in two phases, Zizabona is expected to be commissioned in 2010 and 2012.
Meanwhile, the power situation in Namibia, like the rest of Southern Africa, remains critical and according to Shilamba, the situation might only slightly improve towards the end of next year.
A looming power crisis prompted the national power utility to among other initiatives taken, sign an agreement with Zesa that saw NamPower injecting US$40 million in the rehabilitation of the coal-powered Zimbabwean power generation plant, Hwange Power Station.
In return, Namibia will by the end of next month, receive 150 megawatts daily over a five-year period.
Imports from Hwange started with the initial 40 megawatts in January as per agreement and today, the amount of power supplied to Namibia has increased to 120 megawatts.
An additional 30 megawatts that will bring the total to be supplied to Namibia to 150 megawatts, is expected to start flowing in next month, Shilamba explained. www.newera.com.na