The following is an update report for our Groot ecosystem development in Namibia.
I arrived in the US on Wednesday this week, but next week Wednesday, I will fly to Denmark before I return to Namibia by next weekend.
The purpose for my trip this time to the US and Denmark is to meet with engineers for the development of our 900 MW Gas Power Plant (Groot Power Plant).
Why is it urgent for the development of this mega Power Plant project in Namibia? I will explain this far below later.
What we are doing now at Groot Property Group is that we are busy registering a new company, that will be called “Groot Power Plant (Pty) Ltd”. This is the company that will develop and operate the Groot Power Plant project. In this new company, we (Groot Property Group (Pty) Ltd), will not be the majority shareholder; in fact, we want and plan to give 15% of equity in this new company to NamPower, 15% of equity to the Ministry of Mines and Energy, 15% of equity to another Namibian government-owned entity, and 10% to a Namibia based and Namibia owned private company, which we have not yet identified, but only the one that wants to partner and work with us for this power project development.
We will only own 30% of equity of Groot Power Plant (Pty) Ltd, and the other 15% of equity will be reserved for a financing partner, which may be Standard Bank which has indicated an interest in this Power Plant or any other investment entities which may be interested in being part of the development of this urgently needed power plant.
We are doing this because we want this Groot Power Plant to be a Namibia majority-owned entity to provide a safer, reliable, environmental friendly (no or less emission of CO2), cleaner, adequate, and cost effective electricity generation solution for Namibia.
This is a US$1.2 billion development project and we envision it to be completed and be operational by the end of 2014 so that starting 2015, Namibia will no longer in need of importing electricity from its neighboring countries.
Hence my current trip to the US and Denmark, is to meet with engineers; the company that will actually do the work; plan, develop, design, and construct this Power Plant is from Denmark, not an American based company. Only Robbie Jena, our Chief Strategist and Architect of our Groot ecosystem, who by the way was born in India but like me, has studied and makes the US his current home, is the brain behind this mega Power plant. He’s specialist in power plant systems development and high critical engineering and technology solutions. Robbie is accredited for architecting the Chinese economy, it’s him who taught the Chinese critical manufacturing and engineering conceptualizations in the early 1980s which after they have implemented his solutions, China has been growing a double digit, making it the world’s largest economy by 2016. And we are honored to have Robbie as part of our team at Groot Property Group.
Furthermore, because this is a natural gas diesel fired power generation station, it needs high level technology and equipment that will come from the US, China, Germany and Japan in order to make it the best performing and more efficient power generation station in Namibia.
Why the urgency need for the development of this mega Power Plant for 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).
Namibia, with a population of slightly more than 2.2 million, has a dire need of electricity supply; hence the development of a reliable, clean, safe and adequate electricity generation plant to power the entire urban and rural areas in Namibia is regarded by some of the Namibian government officials as a matter of national security urgency.
The Country currently consumes about 2.9 Terawatts (TW) per year, which equals to about 400 Megawatts (MW) per month. Namibia Power Corporation (Pty) Ltd (NamPower), a national power utility company 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 for distribution in Namibia.
South Africa has been the primary source for electricity generation for 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 10%. Zimbabwe has also been supplying 150 MW of electricity to Namibia. However, it has informed NamPower about 10 years ago that by around 2013 it will also cut off its supply to Namibia.
In mid-November 2010, His Excellency President Pohamba and his counterparts from Zambia and Botswana inaugurated the Caprivi Link Interconnector, an N$2.4 billion (US$348 million) electricity line financed by NamPower to supply 300 MW with a capacity of 600 MW of electricity to Namibia, Zambia and Angola. But, that’s not sufficient because it’s shared among the three countries and it may experience frequent congestion depending on which country’s heavy usage at any given time.
Groot Property Group (Pty) Ltd (GPG), a Namibia-based premier rapid industrial development and foreign direct investment management company, focuses on implementing applied neuroeconomics and systems dynamic to efficiently explore, develop, and manage self-sustained ecosystems for the slow-developing and stagnant economies in selected developing countries.
Its prime focus is to explore, develop, and manage upscale multifarious rapid industrial ecosystems specifically designed to help improve and fast-track the reduction of poverty and unemployment, address income inequalities, increase economic outputs, improve the quality of life, and strengthen the performance, growth and development of national economies.
GPG is developing a rapid industrial ecosystem with more than 60 different projects which includes Groot Town Center, Wire and Cable Plant, Mini Steel Plant, Engineering College, and more related industrial projects that would enable us to realize our goals for our ecosystem development in Namibia.
One of these projects is a 900 MW Gas fired Power Plant (Groot Power Plant) to provide a cleaner, safer, reliable and more cost-effective electricity supply for the entire urban and rural areas in Namibia. By developing this Power Plant, it will be able to meet Namibia’s electricity needs by supplying it to NamPower at may be N$0.38 per KWh and export the difference of 727 MW to the neighboring countries at a market prevailing price of around N$0.42 per KWh.
When Groot Property Group has implemented its full Groot ecosystem within 5 years, the ecosystem by itself will consume 400 MW of electricity a month, exactly the same amount as what Namibia currently consumes, making it the largest NamPower’s single customer.
This is a development project for Namibia, to be majority-owned by the Namibians. This Groot Power Plant is not a project funded or owned by American based or owned companies. And we are developing this Power Plant to help make Namibia to be no longer a net-importer of electricity but to be self-sufficient in electricity generation and production for the first time in the history of our beloved Namibia.
I appreciate you reading this far and please feel free to post your comment thereto or contact us with any comments, feedback or questions. This is our latest update for our effort to help rapidly develop our beloved country, Namibia.