The power supply challenges currently facing the country will continue to prevail until the commissioning of a new base load power station in 2014.

According to the national power utility, Nampower, all power utilities in the region have initiated a number of generation and transmission projects to try and meet the ever-increasing demand for power supply.

"Given the challenges of implementing the large scale projects such as the time span of such projects, NamPower initiated the Short Term Critical Supply Project under which a number of short and medium term initiatives will be implemented to address the immediate power supply shortages," Nampower said in a recent statement.

As part of the Short Term Critical Supply Project, the NamPower Board of Directors has approved the fast tracking of the Erongo Coal-Fired Power station, amongst others.

NamPower said the substantial increase in power demand in Central Namibia due to development growth has required the investigation into the feasibility of a coal-fired power station base load capacity in the Erongo Region.

The power station, which recently received an environmental clearance, will be located about 10km east of Arandis.

The outcome of the pre-qualification of potential EPC contractors for the Boiler, Turbine, Generator and Balance of Plant have been published; and the outcome of the prequalification for the Civil Works, Earth Works and Rail siding works will be communicated in the foreseeable future.

Detailed techno-economic and geo-technical studies have also been concluded. In addition, detailed investigations were conducted regarding the security and cost of coal supply and required upgrades in the coal supply chain.

NamPower says it is liaising with NamPort, Grinrod/Walvis Bay Bulk Terminal, Trans Namib and other parties to conclude the supporting infrastructure arrangements.

The power utility added that the final cost of the power station can only be determined once the procurement process has been concluded but the estimated costs are in comparison to regional and international projects of similar nature.