UAE-based Utico Middle East has signed an agreement with Namibia to build a AED1.1bn ($300m) coal-fired power plant in its Okakkura Governate.
Under the deal, Ras Al Khaimah's Utico, the GCC's largest private utility and solutions provider, will establish the power plant in the power-hungry African state, which relies heavily on its neighbours for all its power requirements.
The agreement closely follows another announcement made last week by Utico to set up the world's largest solar-powered desalination facility in Ras Al Khaimah.
Once complete, the plant will generate more than 22 million gallons of potable water per day and 20MW of solar power per hour.
The Namibian government will provide the coal to Utico Middle East that will be utilised to generate clean, low-priced power for its citizens.
All power generated in the plant will be sold to Namibia Power Corporation (NAM Power), the government-run power utilities company. Utico will also set up a transmission network to distribute the power across the country.
Presently, Namibia is highly dependent on South Africa for its power requirements, importing more than 40 percent of its power needs from its neighbours.
"This landmark agreement further recognises the capability of the Middle East utilities sector to handle large-scale projects at very competitive costs," explained Richard Menezes, executive vice chairman of Utico Middle East.
"By bringing lower-priced power to Namibia's citizens, we will be contributing to the country's economic development while building our own profile in the African continent."