Namibia and Angola (south west Africa) are planning to build a hydropower plant on the Kunene River. The US$ 7 billion heavy project is to be developed jointly between the two countries, on the river which is also their natural common border. The new hydropower plant will be able to generate about 400 MW of clean electricity. A 50/50 investment sharing model between the two countries is at the basis of the project, with finances coming from the two governments, development agencies and banks in South Africa. Namibia has been put in a vulnerable position in the past years, having had to import electricity from South Africa's state utility Eskom.

Construction on the project is expected to being in early 2010, executed by Brazilian companies. The construction will take 5-8 years, but its projected 2010 start largely depends on the completion of feasibility studies.