The contracts include an Engineering, Procurement and Construction (EPC) agreement with DongFang Electric International Corporation (DEC), long-term woodchip supply agreements with four local suppliers, and a financing loan agreement with the French Development Agency (AfD) for up to €100 million. 

The OBPS, scheduled to commence commercial operations in 2026, will generate base load electricity from indigenous resources sourced from local farmers and contractors. The power station will operate 24 hours a day, enabling NamPower to cost-effectively provide baseload electricity and contribute to the expansion of power generation in the country.

The project aligns with the National Strategy on the Sustainable Management of Bush Resources, aiming to combat bush encroachment and restore savannahs through sustainable bush thinning practices. This initiative will positively impact local farming and agricultural communities, as Namibia faces significant economic losses due to bush encroachment affecting over 26 million hectares of farmland. 

The signing of these contracts marks a significant milestone in the execution phase of the OBPS, as NamPower pushes to harness Namibia's renewable energy potential for sustainable development.