NAMIBIA has signed an MoU with Utico Middle East, the GCC’s largest private full service utility and solutions provider, for the establishment of a $300 million (Dh1.1 billion) coal-fired power plant in its Okakkura Governorate.

The project entails the development of a 150 MW (to be increased to 300 MW) power plant in the power-hungry African state, which relies heavily on its neighbours for all its power requirements. The agreement to this effect was signed between Ruurd Abma, managing director of Utico Middle East, and Justus Ve, CEO of AFRES Pty, in the presence of Namibian MP Vetaruhe Kandorozu and a high-powered delegation from Namibia that visited the UAE.

The development closely follows another major announcement made recently by Utico to set up the world’s largest solar-powered desalination facility in Ras Al Khaimah. Once complete, the plant will generate more than 22 million gallons of potable water per day and 20 MW of solar power per hour.

As per the terms of the agreement, the Namibian government will provide the coal to Utico Middle East that will be utilised to generate clean, low-priced power for its citizens. All power generated in the plant will be sold to Namibia Power Corporation (NAM Power), the government-run power utilities company. In addition to the development of the power plant, Utico will also set up a transmission network to distribute the power across the country.

At present, Namibia is highly dependent on South Africa for its power requirements, importing more than 40 per cent of its power needs from its neighbours. Namibia has Africa’s third highest electrification level at 20 per cent. Generation from within the country has become increasingly difficult as the flow in the Kunene River has been variable, making hydro-power generation unpredictable. The establishment of the new plant will therefore be a huge step forward for the African nation to reduce its burgeoning power bills and reduce subsidy.

“This landmark agreement further recognises the capability of the Middle East utilities sector to handle large-scale projects at very competitive costs,” explained Richard Menezes, executive vice chairman of Utico Middle East. “By bringing lower-priced power to Namibia’s citizens, we will be contributing to the country’s economic development while building our own profile in the African continent.”

Utico is the largest private utility company in the region and is aggressively seeking to build utility power projects overseas with its unique business model where it focuses on reducing subsidies for governments as well as building a greener world.