Huila-Cunene Interconnection Project

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The proposed project aims finance Angola’s investment obligations towards the Angola-Namibia (ANNA) interconnection project which will create the transmission capacity needed in Angola to integrate with SAPP. It is part of Phase 2 of the Regional Energy Transmission, Trade and Decarbonization Project multiphase programmatic approach (RETRADE MPA). The ANNA transmission project consists of approximately 366 km of 400 kV transmission line, of which 321 km is in Angola. The estimated costs for the proposed project in Angola is US$470 million, with an IBRD contribution of US$350 million and private sector financing of US$115 million. Two transmission lines will be financed under the proposed project through a mix of public and private financing, namely: the Lubango-Cahama-Namibian Border (Cunene) (segments A-B-C in Figure 1); and the Cahama-Ondjiva (segment B-D), with a potential substation in Xangongo. The segments A-B-D will be financed through a public ownership model and will extend hydro-dominated electricity to the isolated southern provinces that still use diesel generators. This will reduce the cost of electricity, reduce emissions, and improve the reliability of the service. It will also support government programs to increase access to electricity and facilitate the deployment of solar PV plants in an area with abundant solar resources and the expansion of industries. Segment B-C will be developed under a privately financed transmission (PFT) model to integrate Angola into SAPP, facilitating the export of unused surplus electricity and generating revenue for the power sector.In Namibia, the scope of works includes the 45km line from the border to the existing Kunene substation. NamPower, the vertically integrated utility in Namibia, intends financing its part of the transmission line through its own financial resources.