City of Windhoek and the Development Bank of Namibia signed a loan agreement of N$155 million to finance the construction of the Khomas Intake Substation project.

Developments in residential, commercial, and industrial areas throughout the city have led to an ever-increasing demand for power.

Currently, the existing Nampower Van Eck Substation cannot be upgraded further to accommodate anticipated demand as it has reached its full physical design capacity, which is expected to be surpassed before 2027.

Against this background, the City Council has applied to Nampower for an upgrade from 190MVA to 280MVA, to which it responded and offered to build the Khomas substation at an estimated cost of N$228 million. Of that, the council has already paid N$72 million. 

The signed loan agreement between the City of Windhoek and the Development Bank of Namibia for the remaining N$155 million will thus kick-start the construction of the Khomas substation, to ensure additional capacity to support the forecasted growth in electricity demand.