UAE-based Utico Middle East has signed an agreement with the business unit of the Okakarara Town Council in Namibia to develop a coal-fired power plant with a capacity to produce up to 300 MW of power
According to the Namibian Sun, the contract was signed by Utico officials and the Okakarara Constituency councillor Vetaruhe Kandorozu, Okakarara CEO Nathanael Karuaihe and the Urban Development Planning consultant of the town council, Justus Stanley Veii. The deal was announced at the second annual Global Independent Water and Power Project (IWPP) Summit in Ras Al Khaimah.
Utico said it has invested about US$240mn into the project.
As per terms of the agreement, the utility company will get coal from the Namibian government and all power generated by the plant will be sold to state-owned NamPower. Utico will also set up a transmission network to distribute the power.
Two companies will be set up in Okakarara to manage the project.
The utility company has also announced plans to acquire a 49 per cent stake in AFRES, the business arm of the Okakarara Town Council.
Utico executive vice chairman, Richard Menezes, said, ?This landmark agreement highlights the capabilities of the Middle East utilities sector to handle large-scale projects at very competitive costs.?
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