Because of its great distances and the
general low level of economic development in Namibia, the establishment of
a country-wide integrated power supply system only became economically
feasible in the mid-sixties.
Consequently, the Government of the
Republic of South Africa decided in 1964 that the greatest contribution
the State could make to propel economic development in
Namibia would be to utilise the waters of the Kunene River for the
generation of electric power and to distribute it, primarily, from Windhoek northwards.
The South West Africa Water and Electricity Corporation (SWAWEK) was formed on 19 December 1964
as a private and fully affiliated company of the Industrial Development
Corporation of the RSA with its prime objectives being the development of the Ruacana Scheme, as it later became known, and the establishment of a
transmission system for the distribution of power southwards.
No development of the Kunene River could however be undertaken without the
approval of the Government of Portugal. Negotiations were therefore immediately
entered into and at a very early stage in 1964 an agreement was reached wherein
the principle of "the best joint utilisation" of the water resources of "rivers
of common interest" was accepted. By this was meant "the apportionment by the
parties, on a fair and equitable basis, of
common water resources within the limits of such resources for the maximum
benefit of the respective countries".
Whilst these negotiations were still
being conducted, all probable consumers in SWA were being canvassed for
connection to the envisaged scheme. Eventually this was completed and firm
assurances with regard to
cost of electricity and estimated dates as to when supply would be
available were given to municipalities and other instances.
The negotiations with the Portuguese Government, however, took much longer than was originally and this
resulted in SWAWEK finding itself in the situation where it would not be
able to honour the commitments it had made to its future consumers if it had to wait any longer on a final agreement with the Portuguese
Government.
