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Kudu Power application shrouded in secrecy

Prospective power producer Kudu Power Company has been forced to re-apply for an electricity generation license the Economist has learned. The spanner in the works relates to a lack of information provided on the part of Kudu Power.
In a letter sent to Africa Renaissance Consortium, a soon to be established advocacy group by the Electricity Control Board of Namibia, the re-application for an electricity generation license stems from Kudu Power’s desire to withhold certain information from the public domain. An investigation by the Electricity Control Board has forced Kudu Power to re-advertise its application following complaints received against the application.
Responding to the query, Electricity Control Board Chief Executive Officer Foibe Namene said, “The application solicited much interest and the Electricity Control Board received a number of complaints regarding the sufficiency of the information and compliance with the requirements in the Electricity Administrative Regulations. From discussions with Kudu Power it came to the fore that the applicant intends to request that certain information confidential information be exempted from the public requirement.”
Added Namene, “Currently the Electricity Control Board is awaiting an application for confidentiality exemption from Kudu Power [if any].”
On 6 August 2014, Kudu Power advertised its application for an electricity generation license in The Namibian, a daily. The construction of a power station 25 kilometres north of Oranjemund is being developed in partnership with majority shareholder NamPower (51%), CEC Africa (30%), and a strategic equity partner who will hold 19%. NamPower will be the main off-taker of energy generated at the 800 megawatt power facility with secondary off-takers in South Africa, and Zambia. In May, NamPower was negotiating the sale of 100 megawatts to South African power generation utility ESKOM. The hiccup according to NamPower relates to changes in legislation on the procurement of power from Independent Power Producers and imports from outside of South Africa.

Majority shareholder NamPower anticipates electricity to cost approximately US$0.11-0.12 per kilowatt hour, making it competitive in comparison to any new power project expected to come onto stream by 2017. Comparisons to prospective power projects in Zambia indicate the competitiveness of the Kudu project. A basic cost comparison shows that the 120 megawatt Itezhi-Tezhi hydroelectric project on Zambia’s Kafue River, the 300 megawatt Maamba coal fired power station and the 600 megawatt Kafue Gorge Lower hydro-electric power project will effect similar tariffs, with the Kafue tariff hitting US$0.14 per kilowatt hour.
Construction of the ambitious power project is scheduled to start in 2015 while commercial operations are scheduled to start in the first quarter of 2018.

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.