Groot Property Group to Build 900 MW Gas Power Plant in Namibia
FOR IMMEDIATE RELEASE
WINDHOEK, Namibia - October 3, 2011 - - /GPG/ - - Groot Property Group (Pty) Ltd is developing a rapid industrial ecosystem in Namibia with more than 60 different projects which includes Groot Town Center (Groot), Wire and Cable Plant, Mini Steel Plant, Engineering College, Medical Center, and more related industrial projects that would enable a creation of more than 500,000 direct and indirect better paying and sustainable job opportunities in Namibia within 3 years.
Namibia currently consumes about 2.9 Terawatts (TW) per year, which equals to about 400 Megawatts (MW) per month. NamPower, a national power utility company of the Government of Namibia, currently generates about 35% or 1.2 TW of electricity from its Hydro Power Plant in Ruacana, Coal Plant in Windhoek, and Diesel Power Plant in Walvis Bay and imports about 65% or 1.4 TW of its electricity requirements from South Africa, Botswana, Mozambique, Zimbabwe, Zambia and the DRC to power Namibia.
South Africa has been the primary source for electricity supply to Namibia since the beginning of time. However, about 15 years ago, it informed NamPower that by around 2013, it will no longer be able to supply electricity to Namibia. South Africa has since reduced its electricity supply to Namibia in 2011 and it only accounts for about 10%. Zimbabwe has also been supplying 150 MW of electricity to Namibia. However, it has informed NamPower years ago that by around 2013 it will also cut off its supply to Namibia.
"Recent regular power cuts in Windhoek have raised concerns of NamPower's energy generation stability, given that South African national power utility, Eskom, is said to have again communicated its inability to supply Namibia with electricity during this winter". (New Era Newspaper, July 4, 2011).
One of the projects that Groot Property Group (Pty) Ltd is developing as part of its ecosystem is Groot Power Plant, a 900 MW Combined-cycle Gas Turbine Power Plant (net) in South-west Namibia in order to help provide a cleaner, safer, reliable and more cost-effective electricity solution for Namibia. By developing this power plant, it will help meet Namibia's energy need by supplying it to NamPower and export the difference of 727 MW to neighboring countries at a market prevailing price.
When the Company has implemented its full ecosystem within 5 years, the ecosystem by itself will consume about 400 MW of electricity a month, exactly the same amount as what Namibia currently consumes, making it the largest NamPower's single customer.
"The wealth creation of a country is directly proportional to the country's ability to produce and meet its electricity consumption need, and for the first time in the history of Namibia, the country will no longer be a net importer of electricity, but a producer and exporter of a cost effective, cleaner, safer, reliable, and environmental friendly power generation for the entire Namibia". Says Simon Kapenda, VP Development Operations.
The total budget for the complete planning, development, engineering and construction of Groot Power Plant is about US$1.2 billion (N$9.4 billion). And the Company is raising the needed funds through a combination of debt and equity through a network of connected financial institutions including pre-selected commercial banks in Southern Africa such as Standard Bank. For the Engineering, Procurement, and Construction Management (EPCM) of Groot Power Plant, the Company has selected Aurecon Group Ltd as the EPCM Contractor.
"We seek to work and partner with anyone who can offer value-added proposition for the fast development and realization of the Groot Power Plant and the Groot ecosystem projects in order to help Namibia meet its National Development Plans and Vision 2030 within 5 years instead of 20 years." Says Robbie Jena, VP, Groot Ecosystem Strategist and Scientist.
The preliminary technical planning and development for Groot Power Plant was started in July 2011 and the construction will begin within a few months. The Groot Power Plant is expected to be completed and ready for commercial operation by end of 2014 in order to help NamPower meet Namibia's urgent electricity need.
About Groot Property Group (Pty) Ltd
Groot Property Group (Pty) Ltd is a premier rapid industrial development and foreign direct investment management company which focuses on implementing applied neuroeconomics and systems dynamic to efficiently explore, develop, and manage self-sustained ecosystems for the slow-developing and stagnant economies. Learn more about the Groot Power Plant at www.grootgroup.com/gpp.
Source: Groot Property Group (Pty) Ltd.
Web site: www.grootgroup.com