Abu Dhabi-based Utico Middle East, a leading private service utility and solutions provider, is set to establish a $300 million (Dhs1.1 billion) coal-fired power plant in Namibia's Okakkura Governorate.

The project entails the development of a 150MW increased to 300MW power plant in the African state, which relies heavily on its neighbours for all its power requirements.

Under the deal, the Namibian government will provide the coal to Utico, 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.

The memorandum of understanding (MoU) was signed this week by Ruurd Abma, managing director of Utico Middle East, and Justus Ve, CEO of Afres, in the presence of Namibian member of Parliament Vetaruhe Kandorozu, and a high-powered delegation from Namibia currently visiting the UAE.

In addition to the development of the power plant, Utico will also set up a transmission network to distribute the power across the country.

The development 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.

Presently, 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.

“This landmark agreement further recognises the capability of the Middle East utilities sector to handle large-scale projects at very competitive costs,” said Richard Menezes, the executive vice chairman of Utico.

“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.” - TradeArabia News Service