ENERGY &
Country Brief – NAMIBIA
SUSTAINABILITY News & Analysis
July 2018
Namibia July 2018
The Future of Alternative Energy
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Country Briefing
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Is it worth the effort?
Country Brief – NAMIBIA
July 2018
Quick Facts Population size Employment Literacy
2.30 million 62.7%1 89.00%
GDP Growth 2018(P) 1.4% Repo Rate 6.75% Interest rate (Prime) 10.50% Inflation rate 4.00% Budget (Current) N$65.0 Billion2
Geographic size 824,292 km²
Free vector map of Namibia outline - by One Stop Map
Industries Telecom (sophistication) Mobile - cell phones Water Availability / capita3 Electricity Gen. (Local) Electricity Demand (all)
Tourism, Mining, Fishing LTE 2.575 million subscribers 8, 800, 000Litres/capita 484.000 MW 629.000 MW
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Namibia Labour Force Survey (NLFS) of the Namibia Statistics Agency (NSA) http://www.mof.gov.na/documents/27827/506801/Budget+Speech+2018.pdf/3f0b42f6-2c2d-4502-bca8b84f5d6951cc 3 2005 Figures https://www.greenfacts.org/en/water-resources/figtableboxes/aquastat123.htm
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Country Brief – NAMIBIA
July 2018 COVER PAGE IMAGE RDJ Photo
This report is a FREE Publication and was prepared by RDJ Consulting Services CC based in Windhoek, Namibia. The content is collated from publicly available information and so its accuracy cannot be guaranteed.
Advertising aligned with our objectives of Sustainable Resource usage is welcome. Contact Details; RDJ Consulting Services CC PO Box 23738 Windhoek, NAMIBIA
Editor: David Jarrett Author: RDJ Consulting Interns*
Telephone: +264 61 400 171 Email – briefing@rdjconsulting.co.za RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy.
*see Error! Reference source not found. for full details
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Visit our website www.rdjconsulting.co.za for more information.
Country Brief – NAMIBIA
July 2018
Table of Contents Economy at a glance ............................................................................................................................... 8 National Economics Fast Facts ............................................................................................................ 9 Food prices increase ......................................................................................................................... 10 Namibia’s Foreign Reserves link to China ......................................................................................... 10 Namibia’s Trade Balance................................................................................................................... 11 Namibia’s Sector Performance ......................................................................................................... 12 Namibia’s Projected Economic Growth ............................................................................................ 12 A glimpse at the future ......................................................................................................................... 13 Oil & Gas ............................................................................................................................................... 15 May 2018 Fuel price increase ........................................................................................................... 16 Eco Atlantic’s Public Hearings on Planned Explorations ................................................................... 16 Tullow into Oil drilling ....................................................................................................................... 16 Uranium ................................................................................................................................................ 17 Mining Industry 2017 Performance Overview .................................................................................. 18 Electricity............................................................................................................................................... 19 NAMPOWER increased Electricity tariffs by 5% ............................................................................... 20 ErongoRED increased electricity tariffs by 4% .................................................................................. 20 NORED increased electricity tariffs by 5.5% ..................................................................................... 21 Tariff Charges explained ................................................................................................................... 21 CENORED financial overview ............................................................................................................ 22 Omuthiya residents to be electrified ................................................................................................ 22 NORED electrifies Oshihau Village .................................................................................................... 23 City of Windhoek writes off a few electricity debts.......................................................................... 23 Renewable Energy ................................................................................................................................ 24 ErongoRED’s approach to RE applications ........................................................................................ 25 Local renewable energy partnership emerged ................................................................................. 25 SunEQ Namibia to build a 5MW PV Plant ......................................................................................... 26 Water .................................................................................................................................................... 27 Price increase in water services ........................................................................................................ 28 Exploring the Kalahari Ohangwena Aquifer ...................................................................................... 29
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The Environment and Sustainability ..................................................................................................... 30
Country Brief – NAMIBIA
July 2018
Telecommunications ............................................................................................................................. 32 Telecom opens first flagship store .................................................................................................... 33 Roads and Transport ............................................................................................................................. 34 New proposed taxi fares for commuters .......................................................................................... 35 TransNamib making headway operations ........................................................................................ 36 Alleviating congestion at Hosea Kutako Airport ............................................................................... 37 Air Namibia to expand its routes ...................................................................................................... 37 Financing ............................................................................................................................................... 38 Solar power financing growing ......................................................................................................... 39 Economic Profile of Outapi – An Investment Possibility? ................................................................. 39 Tenders ................................................................................................................................................. 40 NAMPOWER ...................................................................................................................................... 41 NAMWATER ...................................................................................................................................... 42 NORED............................................................................................................................................... 42 Careers .................................................................................................................................................. 43 NAMPOWER ...................................................................................................................................... 44
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EDITORIAL TEAM ............................................................................................................................ 45
Country Brief – NAMIBIA
July 2018
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Country Brief – NAMIBIA
July 2018
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Coaching, Mentoring and Team working… …For the best outcome!
Country Brief – NAMIBIA
July 2018
Figure 1: Image source - http://getdrawings.com
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Economy at a glance
Country Brief – NAMIBIA
July 2018
National Economics Fast Facts4
Country:
Namibia foodstuffs; petroleum products
Major
and fuel, machinery and
imports
equipment, chemicals
diamonds, copper, gold, zinc,
Major
lead, uranium; cattle, processed
exports
fish, karakul skins
Fiscal year
1 April - 31 March
Monetary Unit
1 Namibian dollar (N$) = 100
cents
“This budget calls on the collective support for all Namibians, and, more than ever before, the contribution of the private sector to the national development objectives.” Hon. Minister of Finance, Calle Schlettwein – Budget Speech: 7 March 2018
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https://www.asycuda.org/dispcountry.asp?name=Namibia
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Country Brief – NAMIBIA
July 2018
Food prices increase5
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he cost of food in Namibia is on the rise. Namib Mills, a Namibian company that specialises in producing high quality wheat and maize meal products, announced that the prices of its products are expected to increase as of July 31, 2018. The estimated price increase for their individual product will be as follows;
% Price increase Maize Meal 3.2 Wheat Flour 3.2 Rice 4.4 Mahangu 2 Products Pasta 3.3 Instant Maize 3 Porridge
Food Price increase
Product
Price increase (%)
(as of 31st July, 2018) 5 4 3 2 1 0 Maize Meal
Wheat Flour
Rice
Mahangu Products
Pasta
Instant Maize Porridge
Namib Mills Food Products
The increase is attributed to the increase in electricity and fuel prices that had affected their business overheads.
Namibia’s Foreign Reserves link to China6
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amibia’s Deputy Director for Corporate Communications, said reported that the Chinese currency, “yuan” made up one percent of Namibia’s foreign reserves at the end of 2017, but offered a competitive risk-adjustment return. This outcome was due to the yuan’s higher yields and low correlation to other currencies that were already held at the time of inclusion. The IMF recently reported that China’s share of allocated currency reserves increased for a third straight quarter to 1.39%.
At the moment, the official foreign exchange reserves are denominated into three major reserve currencies, namely the rand, the euro) and the US dollar.
https://www.namibian.com.na/68513/read/Food-prices-to-go-up https://www.namibiansun.com/news/yuan-forms-1-of-namibias-foreign-reserves2018-07-03/
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Country Brief – NAMIBIA
July 2018
Namibia’s Trade Balance7
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he overall export and import values for q1-2018 were estimated at N$18,829 million and N$27,177 million respectively. Subsequently, overall trade (export plus imports) stood at N$46,006 million compared to N$36,126 million recorded in q1-2017, while in q4-2017 total trade was estimated to be N$42,293 million. The trade balance (exports minus imports) for q1-2018 amounted to a deficit of N$ 8,349 million compared to N$4,882 million recorded in q1-2017 and N$5,588 million observed in q4- 2017 (Chart 1). Y-on-Y, the merchandize trade balance showed a remarkable deterioration of 71 percent. The deficit was mainly supported by high domestic demand for foreign goods, thus, inflating the import bill by 33 percent. Similarly, q-on-q trade deficit worsened by 49 percent.
Figure 2: Source – NSA Trade Statistics Trade balance; q2-2013 to q1-2018
The persistent deficits are reported to be mostly driven by Namibia’s high demand for high-valued manufactured commodities and machinery from the rest of the world as opposed to exporting mainly primary commodities that are of low value, with the exception of diamonds. To his reaction on the existing deficit, research associate at Economic Association of Namibia (EAN) said that Namibia needs to finance the existing trade deficit by improving competitiveness and design, and implementing smart policies that attract foreign direct investment (FDI).
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https://cms.my.na/assets/documents/Q1-2018_Trade_Statistics_Bulletin.pdf
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Country Brief – NAMIBIA
July 2018
Namibia’s Sector Performance8
capacities, leaving the zinc and lead sub-sector to drive this growth during 2018 and 2019.
B
Namibia’s Projected Economic Growth9
Diamond Mining Sector - estimated to maintain a high growth level during 2018 before contracting in 2019 due to the depletion of onshore diamond deposits. The sector's projected growth is 10.9% in 2018, which is reasonably high, despite a slowdown from 12% in 2017. Uranium Mining Sector - projected to moderately grow by 7.5% during 2018 before accelerating by 15.6% in 2019 as output from the Husab mine increases. The moderate growth is due to the stop of production in the uranium producers such as Langer Heinrich. The rate was, however, lower than the 23.4% recorded in 2017. Metal Ores Sector - projected at 7.6% and 5.2% in 2018 and 2019, respectively, which is a slowdown from 9.9% recorded in 2017. Slower growth rates are based on the fact that various sub-sectors such as gold and copper are currently operating around their design
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https://www.namibian.com.na/69304/read/Slowgrowth-expected-for-primary-industries
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he Bank of Namibia's director for Strategic Communications and Financial Sector Development, stated on July 6th, 2018 that despite the local economy recording a contraction of 0.1% during the first four months of 2018, and a contraction of 0.4% in the last four months of 2017, the local economy is still projected to experience growth of 0.6% in 2018, and a further 1.9% growth in 2019. The expected recovery in 2018 is mainly due to projected improvements in transport and communication, electricity, water and manufacturing, coupled with slower contractions for the construction and wholesale and retail sectors,” she noted. She acknowledged that the mining sector is also set to continue supporting the domestic economy, although it will be less than in the previous years.
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https://www.namibian.com.na/69244/read/Dom estic-economy-predicted-to-grow-by-06pct
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Agricultural Sector - expected to normalise in 2018, following high growth in 2017. The Sector is projected to grow by 3.1% and 4.1% in 2018 and 2019, respectively, showing a marked slowdown from a 12.7% growth rate in 2017.
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elow is an Economic Performance overview of the various Namibian Economic sectors from 2017 to-date.
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July 2018
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A glimpse at the future
Country Brief – NAMIBIA
July 2018
A Look at Future Pricing of Electricity10
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ccording to Fereidoon Sioshansi - a writer and publisher of diverse Energy Economics books and journals - the rapid transformation of the electricity sector will make it necessary for utilities to adopt radically new pricing methods, because existing volumetric tariffs will increasingly be replaced by fixed service fees. By now the story on the rapid transformation of the electricity sector driven by the 3Ds – Decentralization, De-carbonization and Digitization – is well-known. However, little is known about how this transformation is going to materialise, and when and who may be the ultimate winners as the incumbents’ traditional business models are disrupted. Nonetheless, it is not a surprise that many predictions on the outcome of this scenario are
For example; In the Mobile phone industry, while the analogy is not perfect – e.g., currently electrons cannot be delivered without copper wires – it is clear that mobile phone service is increasingly about connectivity and access to the network rather than the volume or frequency of calls. Subscribers choose a provider on the basis of the ubiquity and reliability of its network access, the strength of the signal, bandwidth and speed. Therefore, charging based on volume is outdated and will become unsustainable as a means of covering the cost of the delivery network. This is a reason why industries are required to innovate and adopt new pricing technologies that will help meet customers’ needs and progress as the wold progresses.
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http://energypost.eu/how-electricity-will-be-priced-in-the-future/
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already being made and followed by analysts and experts every step of the way!
July 2018 Namibia has no refinery capacity to-date
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Oil & Gas Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
July 2018
May 2018 Fuel price increase11
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he Ministry of Mines and Energy has announced that the fuel pump prices increased from the 1st of August 2018 Prices in Walvis Bay and countrywide are now as follows: Petrol (95 Octane) - N$ 12.55 /L Diesel (500 PPM) - N$ 12.88 / L Diesel (50 PPM) - N$ 12.93 / L
Namibia currently ranks 14th in the Fraser
Eco Atlantic’s Public Hearings on Planned Explorations12
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fter an exploration extension to 20 March, 2019 and now planning to drill a test well in one of its exploration blocks in Walvis Bay Basin, the oil and gas exploration company Eco (Atlantic) Oil & Gas Ltd had made arrangements to host a public hearing on 18 and 20 July, 2018 in Windhoek and Walvis Bay respectively, to discuss the Environmental Clearance Certificate (“ECC”) application required for the grant of a drilling permit for the PEL 30 Osprey Prospect exploration.
Institute Global Petroleum Survey, 2016 of small reserve
Tullow into Oil drilling13
holders,
A
placing
British based multinational oil and gas exploration company Tullow Oil plc, is set to drill its first ever oil well in Namibia in September, 2018. The company expects to start drilling the high-impact Cormorant prospect in the PEL37 licence offshore Namibia and the frontier well will be drilled by the Ocean Rig Poseidon which is reported to have arrived in Namibian waters already, and has the potential to open a new oil basin. According to Cazenove, a representative of the company “the well will take about 40 days to drill with initial results soon afterwards. We intend to start drilling on 1 September.” This is reported to be the first well drilled in Namibia since 2014.
Namibia 5 places ahead of South Africa. www.fraserinstitute.org
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http://www.mme.gov.na http://www.ecooilandgas.com/news/index.php?content_id=185 13 http://www.observer.com.na/index.php/business/item/10028-tullow-oil-to-drill-first-well-in-september
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July 2018
Figure 3: image source - https://www.newera.com.na
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Uranium Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
July 2018
Mining Industry 2017 Performance Overview14
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espite the good performance of the Mining Industry in 2017, some of the 24 current members of the Chamber of Mines of Namibia made huge losses. This was revealed in the 2017 Chamber of Mines Annual Report.
2017 Turnover Vs Losses
Amount in Millions of N$
2000 1800 1600 1400 1200 1000 800 600 400 200 0 Areva Resources Namibia
Dundee Precious Tsumeb
Okanjande graphite Mine
Losses (in Millions of N$)
Langer Heinrich Uranium Mine
Navachab Gold Mine
Weatherly Salt Company Mining in Namibia Swakopmund
Earnings (in Millions of N$)
The overall mining industry’s fixed investment increased from N$3.46 billion in 2016 to N$5.73 billion in 2017, posting strong growth compared to a contraction recorded in 2016, as a result of improved commodity prices.
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http://www.observer.com.na/index.php/business/item/9870-mining-companies-bleeding-losses
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Country Brief – NAMIBIA
July 2018
Generation, Transmission and Distribution: Powering the people!
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Electricity
Country Brief – NAMIBIA
July 2018
NAMPOWER increased Electricity tariffs by 5%
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he Electricity Control Board (ECB) has approved a 5% bulk tariff increase effective since 1 July 2018, following a request by NamPower15. The increase entails the current N$1.61 in bulk tariff per kilowatt (kWh) hour to N$1.69, and is expected to help NamPower optimise its operational costs. All the NamPower bulk customers will be affected, such as regional electricity distributers, local authorities, regional councils and mines. The respective bulk customers should individually apply to the ECB for tariff increases that is applicable to customers.
ErongoRED increased electricity tariffs by 4%16
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he Erongo Regional Electricity Distributor, ErongoRED, announced in the week of July the 20th, 2018 that their customers have been paying 4% more for electricity since the start of July, 2018, as per Annual Tariff Adjustments for the 2018 financial year.
ErongoRED CEO informed that NamPower’s electricity tariffs increase by 5% on average, has impacted ErongoRED as well. The impact of this on ErongoRED is 5%, which means the company will be paying an average of N$1.69 per unit on bulk tariffs. Based on this, and upon the application from ErongoRED on the new tariffs, the Electricity Control Board granted Erongo-RED an average tariff increase of 4% for its customers. This is, however, an average of different tariffs for different categories that would see an increase of between 2% and 5%.
Figure 4: Image credit - https://www.esi-africa.com
http://www.ecb.org.na/images/docs/Tariffs/NP_Press_Release_1819.pdf https://www.namibian.com.na/69721/read/Erongo-paying-more-for-power
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Country Brief – NAMIBIA
July 2018
NORED increased electricity tariffs by 5.5%17
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he Northern Regions Electricity Distributor (NORED) had announced a 5.5% electricity tariff increase, effective as of July 1 for the 2018/19 financial year. According to NORED spokesperson Lukas Simon, the annual tariff increase is in accordance with Section 27 (2) of the Electricity Act 4 of 2007. Simon added that the increase is in relation with the approved NamPower tariffs adjusted at the beginning of the year to ensure a continued supply and distribution of electricity by NORED. In April, 2018 ECB approved NamPower’s tariff adjustment of five percent, which translated to an increase from N$1.61 per kilowatt-hour to N$1.69 per kilowatt-hour. Electricity distributors were individually required to apply to the ECB for tariff increases that will be applicable to the end-user customers. Despite the increase, Simon assured that NORED will continue with the rollout of support tariffs that will assist pensioners and other customers in reducing the impact of the high electricity tariff.
Tariff Charges explained18 Charge Type
Service Charge
Capacity Charge Demand Charge Energy Charge ECB Levy
Charge description and use The service charge (traditionally referred to also as basic charge) is a fixed charge that has the purpose of covering all administrative costs of the particular type of power supply point. The charge often designed to recover some of the fixed network costs relating to the type of supply point in question, e.g. the cable costs for house connections or the overhead lines for farm connections. The capacity charge is a fixed charge that has the purpose of covering all fixed costs related to the size of the particular type of power supply for small to medium power users (i.e. related to how much capacity is made available to the customer). The demand charge is a partly variable charge (with a minimum amount based on 70% of the notified demand of the supply point) that has the purpose of covering all fixed costs related to the size of the particular type of power supply for large power users. The energy charge is a variable charge, depending on actual consumption, and has the purpose of covering at least all variable costs in the power supply system attributed towards the particular power supply. This is a levy payable directly to the Electricity Control Board (ECB) of Namibia, which SERVES AS THE Namibian electricity supply industry regulator. The ECB also approves all electricity tariffs applicable in Namibia and licenses electricity distribution & supply.
GENERAL At present CENORED is trying to simplify and harmonize tariffs in its license area. This process cannot be completed within a year. For instance local authority surcharges apply in certain areas and not in others. Also, the various types of charges represent a mix of the above charges. As such CENORED is working with the ECB to harmonise tariffs over a period of time, typically 3 years. https://www.newera.com.na/2018/07/26/nored-increases-electricity-tariff-2/ https://www.cenored.com.na/tariffs/tariff-charges-explained/522/
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Country Brief – NAMIBIA
July 2018
CENORED financial overview19
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espite reported economic hardships faced by some organisations, Central Northern Regional Electricity Distributors (CENORED) Annual Report indicates that its revenue increased by 8.9% from N$ 496 million in 2016 to N$540 million in 2017. The Pre-paid electricity sales represent 22% of the total electricity sales and the rest of the revenue are from the conventional business customers. The total finance charges for the period was N$ 14.7 million. The increase in finance charges is due to new loans that were obtained during the financial year that ended. The total loans for the year ended 30 June 2017 were N$ 199 536 906, the company’s annual report indicates. CENORED CEO said that Namibia is endowed with some of the best conditions for solar photovoltaic (PV) generation in the world however, the global prices solar PV panels are falling rapidly. Despite this, the company has issued request for tenders to Independent Power Producers for a further 15MW of additional solar PV for the towns Tsumeb (5MW); Grootfontein-Otavi (6.5MW) and Outjo- Khorixas (3.5MW).
Omuthiya residents to be electrified20
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bout 322 ervens in Omuthiya are expected to be electrified. According to figures provided by the Omuthiya Town Council, this includes: 243 ervens earmarked for residential 17 business 10 office plots 9 institutional 2 local authority 3 agricultural and 1 cemetery. The remainder includes 3 private and 20 open spaces
The Town Council’s CEO said that due ongoing selection of the contractor, the final outcomes will be announced by August, 2018. The area has been cleared and has already been serviced with road infrastructure, water and sewerage lines. It is believed that a total of 2,800 applicants are on the council’s waiting list. The council is, however, unable to determine how long the servicing will take as the contractor will be the only party to determine it. Notwithstanding the latter, the council anticipates the electricity servicing completion to be by March, 2019.
https://www.thevillager.com.na/articles/13556/-cenored-revenue-increase-by-89-/ https://www.newera.com.na/2018/07/11/hundreds-of-homes-to-get-electricity-in-omuthiya/
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Country Brief – NAMIBIA
July 2018
NORED electrifies Oshihau Village21
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t a cost of N$303 000, the Oshihau village in Omusati region got electrified through NORED’s (Northern Regional Electricity Distributor) Corporate Social Responsibilities (CSR) Project, which was officially commissioned at the village on 13 July, 2018.
The project which reported to have been completed in March, 2017 will see the residents having prepaid electricity supply to their houses. Thus far, a total of 150 customers are expected to benefit from it and 16 homesteads have already been connected to the network.
City of Windhoek writes off a few electricity debts22
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ollowing recommendations by councillors, the City of Windhoek on 28 June, 2018 decided to write off about N$191 million in “irrecoverable debt” owed by pensioners and vulnerable residents.
The total debt amounts to N$642 million are for services such as water and electricity provision and they are over three years old, and are accruing interest. The decision was necessitated to provide relief to pensioners and vulnerable residents. However, Windhoek municipality spokesperson said on 29 June, 2018 that the debts will be written off, subject to the “conversion of conventional meters” to pre-paid water meters at the applicants' houses.
https://www.namibian.com.na/69473/read/Nored-electrifies-Oshihau https://www.namibian.com.na/68974/read/City-to-write-off-N$191m-debt
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Country Brief – NAMIBIA
July 2018 Clean energy for a healthy planet…
Figure 5: RDJ Photo, used for illustration purposes only
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Renewable Energy
Country Brief – NAMIBIA
July 2018
ErongoRED’s approach to RE applications23
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rongoRED stopped accepting applications for solar power installations in December, 2017. As a result, some bulk consumers got affected by this decision, as well as local solar installation contractors and residents, who claim they were caught off-guard when they learned solar grid applications in the Erongo had been put on hold. Following inquires on the state of ErongoRED’s study on the penetration of renewable energy, due to the increase in electricity tariffs, ErongoRED spokesperson reported that the study has not been completed. This study is aimed at analysing the impact of renewable energy grid integration and ultimately to determine the acceptable levels of renewable energy at various points of Erongo RED's network. ErongoRED’s decision on increasing electricity tariffs will stay until the impact assessment study being conducted is completed.
Local renewable energy partnership emerged24
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joint venture company of O&L Energy called OLC Energy Services, has launched a new partnership with SMA Solar Technology in the week of 29 June, 2018. OLC Energy Services is a subsidiary of the Ohlthaver & List Group and Cronimet Mining Power Solutions, while SMA is global leading company for solar inverters, a key component of all solar PV plants. The partnership with SMA contains technical services on the one side and SMA sales and distribution on the other side. OLC Energy Services Managing Director said that this will improve SMA’s service for Namibian customers who now have a direct local partner in Namibia and also some local stock of SMA equipment. O&L Energy is a specialist for renewable energy in Southern Africa, especially in large-scale PV, Solar Water Heating and Bio Energy. O&L Energy also has a pipeline of renewable energy prospects in Namibia and the Southern African Development Community (SADC), targeting especially 1 Megawatt (MW) to 10 MW plants.
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https://www.namibian.com.na/69721/read/Erongo-paying-more-for-power https://economist.com.na/36464/mining-energy/local-energy-firm-partners-with-global-supplier-to-addmore-renewable-energy-to-the-grid/
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Country Brief – NAMIBIA
July 2018
SunEQ Namibia to build a 5MW PV Plant25
S
unEQ GmbH, a Hamburg-based solar asset development platform, recently reported that it has reached financial close for a 5-MW solar photovoltaic (PV) project in Namibia. The Development Bank of Namibia (DBN) has helped SunEQ secure financing for the project and, the plant will be built in the Otjozondjupa region for Ohorongo Cement. The solar farm, whose capacity in direct current (DC) stands at 6.5 MW, will have about 20 000 crystalline silicon modules and will use a tracking system. Gildemeister Energy Solutions GmbH is codeveloper and engineering, procurement and construction (EPC) contractor. Commercial operation was planned to start at the end of June, 2018. SunEQ said the annual output is estimated at 14 GWh.
Advertise With Us Here!!!
Figure 6: RDJ Photo showing CSP Technology
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https://renewablesnow.com/news/suneq-namibia-announces-fin-close-for-5-mw-of-pv-617431/
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Country Brief – NAMIBIA
July 2018
Water demand in Namibia is met via surface and artesian sources.
Figure 7: RDJ Photo showing water supply and transportation in some rural areas of Namibia’s
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Water
Country Brief – NAMIBIA
July 2018
Price increase in water services26
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he city of Windhoek is introducing a raft of price increases, including the provision of services of which water is also incorporated. These increases were gazetted on 15 June 2018. The Gazette contains information on how much residents will pay for municipal services in 2018, including the increased percentages. The new prices are effective from 1 July 2018. The basic water rates for Windhoek will go up by 7%. The rates are determined by the diameter of the meter inlet, and will be payable whether the water has been consumed or not. This means that a household which spent N$156 on a 25mm diameter inlet will now pay N$168 for the same volume, the document states. Windhoek mayor said during a council meeting that the municipality was in the process of exploring the possibility of installing pre-paid water technologies in city homes.
City of Windhoek writes off a few water debts27
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ollowing recommendations by councillors, the City of Windhoek on 28 June, 2018 decided to write off about N$191 million in “irrecoverable debt” owed by pensioners and vulnerable residents.
The total debt amounts to N$642 million are for services such as water and electricity provision and they are over three years old, and are accruing interest. The decision was necessitated to provide relief to pensioners and vulnerable residents. However, Windhoek municipality spokesperson said on 29 June, 2018 that the debts will be written off, subject to the “conversion of conventional meters” to pre-paid water meters at the applicants' houses.
https://www.namibian.com.na/69004/read/Going-gets-tough-in-Windhoek https://www.namibian.com.na/68974/read/City-to-write-off-N$191m-debt
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Country Brief – NAMIBIA
July 2018
Exploring the Kalahari Ohangwena Aquifer28
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he Ohangwena Governor Usko Nghaamwa has urged the Ministry of Agriculture, along with NamWater, to ensure the Kalahari Ohangwena Aquifer (KOH-2) is fully explored and implemented. The governor said his region is experiencing a serious water crisis that forced him to equip eight extra boreholes for rural communities that had to travel long distances for potable water. The KOH-2 aquifer, which contains an estimated 20 billion cubic metres of water freshwater, is situated about 300 metres deep, below the KOH-1 aquifer, which contains salty water. The Ohangwena Chief Regional Officer reported that “the region is faced with a serious water crisis, but we are only allowed to drill up to the KOH-1 aquifer and this water is not fit for human consumption.” Notwithstanding most of the unsuccessful observations, productions and monitoring of boreholes drilled since 2009 that amount to 21, NamWater and the ministry are supervising the project with technical support from Germany, while the European Union has provided funding of approximately N$25 million. The study for the project is expected to be finished in September, 2018.
Figure 8: RDJ Photo showing Water tanks at the Amarika Desalination Plant in Northern Namibia
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https://www.namibiansun.com/news/aquifer-critical-for-thirsty-north2018-07-18/
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Country Brief – NAMIBIA
July 2018
Figure 9: RDJ Photo showing a well preserved environment, transmission lines and a network tower
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The Environment and Sustainability
Country Brief – NAMIBIA
July 2018
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Remember:
Country Brief – NAMIBIA
July 2018
Figure 10: RDJ Photo showing cell phones placed inside cut plastic bottles, and hung on trees to get signal, in Rural Namibia – Ohangwena Region
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Telecommunications
Country Brief – NAMIBIA
July 2018
Telecom opens first flagship store29
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elecom Namibia opened a brand new flagship store at Windhoek's Grove Mall, serving as a one-stop-shop for customers to experience its new products and services. This forms part of the company's broader plan of redesigning its outlets for improved retail presentation of its products and services, while introducing new technology and solutions that will boost the country's telecommunications sector.
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https://www.namibian.com.na/68983/read/Telecom-opens-first-flagship-store
Country Brief – NAMIBIA
July 2018
Figure 11: RDJ Photo showing a road in Namibian
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Roads and Transport
Country Brief – NAMIBIA
July 2018
New proposed taxi fares for commuters30
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he Namibia Transport and Taxi Union (NTTU) demanded a 50% taxi fare increase for commuters in the country as of September, 2018. According to them, the new taxi fares will be as follows: N$15.00 for Windhoek residents and N$75.00 for OkahandjaWindhoek commuters. The organisation later wrote to the Ministry of Works and Transport in July, 2018, informing the Minister that they will unilaterally go ahead and implement fares increase. The Ministry’s board however, is yet to conduct an economic analysis to see whether commuters could afford the taxi fare if it was increased to those levels, before giving any approvals. Reasons presented for the increased fares were mainly: high cost of living high vehicle maintenance costs increasing petrol and fuel costs and the issuance of certificates of conduct by the police which has gone up by 100%
Figure 12: Bottom - Taxis in Windhoek, Right - New proposed taxi fares for the different suburbs in Windhoek
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https://www.namibian.com.na/69791/read/Union-wants-killer-taxi-fare-increase
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Country Brief – NAMIBIA
July 2018
TransNamib making headway operations31
D
undee Precious Metals Tsumeb has become one of TransNamib’s most important clients, helping the state-owned transporter to set new freight records, and taking a substantial number of heavy trucks off Namibian roads.
Copper concentrate transported by rail from Tsumeb to Walvis Bay increased by 53% in the second quarter of 2018, compared to the first three months of the year. In total, TransNamib moved more than 30 200 tonnes of copper during the quarter from the smelter to the harbour. These large loads continued into the first week of July when another freight record was exceeded. In the space of a single week, TransNamib transported more than 6300 tonnes of copper concentrate from Tsumeb. If this rate continues, the rail operator will transport almost as much copper during July alone, at it has carried during the first quarter. Shifting bulk freight to rail has a measurable impact on road safety. In the first week of July 2018, the recorded tonnage removed 180 heavy duty trucks from the Tsumeb Walvis Bay route, and the second quarter’s jump in tonnage, reduced truck traffic by about 60 trucks per day. TransNamib’s Chief Corporate Communications officer stated that “the competitive advantage of rail over road is that it can handle significantly more freight in bulk volumes at lower prices.” TransNamib said it will continue to pursue a strategy of shifting bulk freight away from road haulage, especially for commodities transported from the coast to the interior, like fuel.
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https://economist.com.na/36653/extra/bulk-cargo-sets-new-transport-record-on-tsumeb-walvis-bay-route/
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Country Brief – NAMIBIA
July 2018
Alleviating congestion at Hosea Kutako Airport32
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ith three years of double-digit passenger arrivals and departures at the airport, consultations are expected to be held by Namibia Airports Company (NAC) in an attempt to alleviate congestion at the Hosea Kutako International Airport. It is reported that the passenger arrivals and departures at the airport grew by 33% over the last three years. According to the acting NAC acting CEO (as in July - 2018), improvements to the airport are estimated to cost N$240 million, and the consultations will, focus on: the expansion of the departure and arrival halls increasing check-in counters to improve customer experience increasing security screening desks from two to four increasing immigration seats from four to six counters and adding a third carousel area for luggage The current terminal was constructed in 1985 as a facility to handle 250 000 passengers per year. Therefore, bidding documents will be put together for the improvement of the current facility, which is urgently needed.
Air Namibia to expand its routes33
D
uring a stakeholder engagement held on the 4th July, 2018, Air Namibia acting MD stated that the National Carrier will start flying to Nairobi, Kenya in 2019 if all the hurdles are overcome. Another possibility, would be extending the airline’s route network to Kinshasa in the Democratic Republic of Congo (DRC), Brazzaville, Maputo in Mozambique and Libreville in Gabon. Air Namibia recently expanded its route network with the inclusion of flights to Lagos, Nigeria and Accra, Ghana.
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https://www.namibiansun.com/news/hosea-kutako-congestion-under-spotlight2018-07-05/ https://www.namibiansun.com/news/air-nam-spreads-it-wings2018-07-04/
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July 2018
Figure 13: Image source - http://www.versantlaw.com
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Financing Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
July 2018
Solar power financing growing34
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amibian enterprise activity can be secured and enhanced by privately owned renewable energy generation facilities. With a rough electricity generation capacity deficit of about 60%, new capacity address this shortfall is being developed.
Recently, the Development Bank of Namibia (DBN) financed a 5MW PV Plant that will be built in the Otjozondjupa region. SunEQ, the PV Plant is a privately owned electricity generation, and was established by a consortium of private companies to provide power to Ohorongo Cement, a major user of electricity. DBN’s head of marketing and corporate communications thus urged enterprises to contact the bank with applications for financing, adding that applicants will find that the bank is eager to be of service.
Economic Profile of Outapi – An Investment Possibility?
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ith a population growth of 9.3% per annum, which is higher than the average growth of 4% per year of all urban areas in the country, Outapi’s local economy is private sector driven. Furthermore, the rapid growth in local infrastructure developments indicate the future growth potential of the town’s economy. This was outlined in a report published by First Capital titled “Economy Profile for Outapi”. Agriculture Studies revealed that value-addition in agricultural raw commodities is also low, hence there is potential to grow the local manufacturing capacity. The report further concluded that despite the town’s growing agricultural farming base, access to financing, especially among small and medium farmers, remains a challenge to enhance this potential further. Role in power supply The report further said the ever-sunny weather of Outapi has proved to be an opportunity to channel the ever-frequent sunlight into the generation of electricity through solar projects. Presently, the town’s electricity demands met through a 5MW solar power plant project was established through a partnership between an international and local investor (Ino Investment). Power usage Individuals in the northern regions, where Outapi is situated, use 3.5MW hours of electricity per annum (292KWh per month). First Capital estimates the average electricity usage in Outapi to be 3.6MWh, equivalent to 300 kilowatts hour per month. Commercial users of electricity in the Omusati Region use 17MWh in a year, equivalent to 1 417MWh per month.
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https://www.namibian.com.na/69812/read/Solar-power-financing-growing
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Place Your Add Here!
July 2018
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Tenders Page
Country Brief – NAMIBIA
Country Brief – NAMIBIA
July 2018
NAMPOWER35 NO. 1.
2.
3.
4.
5.
6.
7.
8.
Supply, Delivery and Offloading of various Electrical Junction Boxes Construction of Medium and Low Voltage Networks for Mankete and Naimanya Schools in Kavango West Region Construction of Medium and Low Voltage Networks for Hukus and Otjinoko localities in Omaheke Region Construction of Medium and Low Voltage Networks supplying Otjiwero locality in Kunene Region Construction of Medium and Low Voltage Networks for Hukus and Otjinoko localities in Omaheke Region W.ONB.NPWR.52.2018. PP208BE-National Bidding Works 2018_RV02_Ohangwena MdA 52.zip-Construction of Medium and Low Voltage Networks for Omukukutu and Otaukondjele villages in Ohangwena Region CONSTRUCTION OF MEDIUM VOLTAGE AND LOW VOLTAGE (MV AND LV) Networks in Omusati Region Procurement of Geotechnical, Geohydrological, and Topographical Works for the development of the Otjikoto Power Station
CLARIFICATION CLOSING DATE 27 Jul 2018 at 00:00 Namibian Time
BID CLOSING DATE 10 Aug 2018 at 11:00 Namibian Time
W/ONB/NPWR28/2018
10 Aug 2018 at 00:00 Namibian Time
24 Aug 2018 at 11:00 Namibian Time
W/ONB/NPWR42/2018
10 Aug 2018 at 00:00 Namibian Time
24 Aug 2018 at 11:00 Namibian Time
W/ONB/NPWR41/2018
10 Aug 2018 at 00:00 Namibian Time
24 Aug 2018 at 11:00 Namibian Time
W/ONB/NPWR42/2018
10 Aug 2018 at 00:00 Namibian Time
24 Aug 2018 at 11:00 Namibian Time
W/ONB/NPWR52/2018
10 Aug 2018 at 00:00 Namibian Time
24 Aug 2018 at 11:00 Namibian Time
W/ONB/NPWR53/2018
10 Aug 2018 at 00:00 Namibian Time
24 Aug 2018 at 11:00 Namibian Time
W/ONB/NPWR01/2019
13 Aug 2018 at 00:00 Namibian Time
24 Aug 2018 at 11:00 Namibian Time
BID NUMBER G/ONB/NPWR20/2018
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http://www.nampower.com.na
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TENDER DESCRIPTION
Country Brief – NAMIBIA
July 2018
NAMWATER36 NO. 1.
TENDER DESCRIPTION To provide ad-hoc electrical construction services to Nored for both medium voltage (MV) lines and low voltage (LV) connections in the Nored operational area for a period of one year.
BID NUMBER NE/013/2018
BID CLOSING DATE Wednesday, 15 August 2018 by latest 11:00
BID NUMBER NE/013/2018
BID CLOSING DATE Wednesday, 15 August 2018 by latest 11:00
NORED37 NO. 1.
TENDER DESCRIPTION To provide ad-hoc electrical construction services to Nored for both medium voltage (MV) lines and low voltage (LV) connections in the Nored operational area for a period of one year.
Advertise With Us!!! https://www.namwater.com.na http://www.nored.com.na
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Country Brief – NAMIBIA
July 2018
Employment creation – a need for Economic Growth Editorial team
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Careers
Country Brief – NAMIBIA
July 2018
NAMPOWER38 Position: Engineer – Primary Plant Reference: 16617 Location: NCB Unit/Department: Power Systems Development Section: Transmission Projects Primary Purpose of the job: The job incumbent is responsible for the engineering and design of substations, by converting a single line diagram into a substation design, including the establishment of materials requirement and project planning. Applications closing date: 07 Aug 2018
Advertise With Us!!! Whether you are a small, medium or large business, simply contact us now to request a space for your add.
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http://www.nampower.com.na
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Country Brief – NAMIBIA
July 2018
EDITORIAL TEAM RESEARCHERS: Fares Shipaxu Aili Iipinge Chilombo Olga Priscila
WRITER: Fares Shipaxu Chilombo Olga Priscila
LAYOUT: Chilombo Olga Priscila
EDITOR: Chilombo Olga Priscila David Jarrett
REVIEWER Lahja Amaambo
PUBLISHER: RDJ Consulting
CONTACT: RDJ Consulting Services CC PO Box 23738 Windhoek, NAMIBIA Telephone: +264 61 400 171 Email – Briefing@rdjconsulting.co.za RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy.
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Visit our website www.rdjconsulting.co.za for more information.
Country Brief – NAMIBIA
July 2018
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Energy & Sustainability In Action