WINDHOEK, Feb 11 (Reuters) - Namibian power utility NamPower has reached a deal with Zambia's Copperbelt Energy Corporation (CEC) to develop a much-delayed $1.2 billion gas-to-power plant in the sparsely populated desert country.
CEC will take a 30 percent stake in the Kudu project near Oranjemund in south-western Namibia that will pump gas from the Kudu field about 170 km (100 miles) offshore to a combined cycle gas power plant.
CEC firm will also buy up to 300 MW of electricity from the plant to supply mines in Zambia, Africa's top copper producer.
Nampower will source $1 billion for the project while CEC is expected to contribute up to $100 million.
Nampower is looking for another equity partner to finance the remaining $100 million.
The plant, which will have a total capacity of up to 1,050 MW when completed in 2017, will be connected to the Namibian and South African electricity grids for local and regional use.
NamPower has been working on projects to boost supplies of electricity in Namibia, one of the world's top uranium producers, but most have been delayed due to financing problems and disputes over contracts.
(Reporting by Servaas van den Bosch; Editing by Olivia Kumwenda-Mtambo and Ed Stoddard)
((Olivia.Kumwenda@thomsonreuters.com)(+27 11 775 3159)(Reuters Messaging: olivia.kumwenda.thomsonreuters.com@reuters.net))
Keywords: NAMIBIA POWER/KUDU
