NEWS

Namibia and Angola are anticipating the construction of the Baynes dam, and subsequently the hydroelectric power plant to take place after the end of 2022.

Responding to questions last week, the energy ministries of both governments through the Permanent Joint Technical Commission on the Cunene River Basin (PJTC) said the commissioning of the plant is planned for the end of 2028 to the first quarter of 2029.

Namibia's executive director of energy, who doubles as the PJTC co-chairman for Namibia, Simeon Negumbo, said the plant would generate 600 MW of power, which would be sold to Namibia and Angola in equal allocations of 300 MW each, while regional off-take is being considered.

“Our preliminary assessment of the current updated project schedule is subject to the certain variables, and the financial close of the project is only expected by the end of 2022, with construction to commence shortly thereafter,” he said.

Negumbo said the two governments discussed the project in 2007 and agreed to carry out detailed feasibility studies for the possible development of the Baynes Hydro Power Project.

The plant is estimated to cost US$1,2 billion (around N$22,6 billion) based on the techno-economic study conducted in 2014.

“The current update of the techno-economic data stated earlier is looking at new technological advancements, which potentially could bring the cost down. Based on the current preliminary indications, the hydro dam could be constructed within five years, which is a saving of two years from the initial projections,” the executive director noted.

In the past the project was delayed due to funding constraints.

AGREEMENT

Negumbo further said the commission contracted the services of an international law firm to assist in coming up with the Baynes treaty, which will be a binational contractual agreement. This comes after the feasibility of the project was proven to be environmentally and technically viable.

He said: “Phase one and two of the legal consultancy, which have been completed, dealt with the review of the Angolan and Namibian legal frameworks as well as analysing the various possible implementation models suitable for the development of a binational project. Phase three, which deals with the institutional set-up of the project is expected to be finalised by May 2020, whereas the drafting of the Baynes Treaty itself will only commence in June 2020, and finalised by the end of 2020.”

KEY FACTORS

The construction of the project is dependent on the final technical solution, which is part of the current assignment of updating the techno-economic data, the project reaching financial close, and the construction of the road access to the site.

In terms of road access, the road authorities in the two countries are busy commissioning the requisite detailed studies for the roads to the site.

The executive director said they are currently updating the environmental and techno-economic data, which will be validated by a panel of international experts.

Similar to the Ruacana Power Station, the Baynes dam will function as a mid-merit peaking station, so that NamPower can avoid buying imported power during peak hours. During the wet season, the Baynes Power Station will run at full capacity, while during the dry season the generators will generate at maximum during mid-merit/peak periods only while 71 MW would be generated during the off-peak periods.