Evaluation Summary - NamPower Caprivi-Link Interconnector (CLI) project, Namibia

In Namibia, the NamPower Caprivi-Link Interconnector (CLI) project was subject to an evaluation in October 2014.
To meet its electricity needs, Namibia relies on imports from thermal power stations in South Africa and Zimbabwe. Early 2000 national policies called for energy diversification, particularly by importing energy from Zambia, which has abundant hydropower potentials. This project was key in implementing this energy diversification strategy.

The evaluation highlights the robust project financing model implemented by all co-financiers and the reliability and efficiency of NamPower as beneficiary and partner. The technical support provided to NamPower was greatly appreciated. However, energy independence from South Africa was not achieved as planned and the under-capacity utilization of the line in the first three years of the project resulted in financial losses, despite the timely and cost-effective choices made during project design.