The dam stores water for the 347 MW (465,000 hp) Ruacana Hydroelectric Power Station, in neighboring Namibia.

[4] In October 1964, representatives of the government of Portugal and the government of South Africa met in Lisbon, Portugal and signed agreements relating to the construction of dams on the Kunene River, thereby controlling the rate of flow of the river and maximizing electricity output at the dams.

The agreements also related to maximizing the availability of water for use by humans and animals in Angola and South West Africa (now Namibia).

At the time construction stopped in 1976, approximately 70 percent of the civil works had been completed and the dam could provide some water for human and animal use.

[7] Other optimization work includes the rehabilitation of the canal carrying water for human and animal use, from the dam at Calueque, Angola to Oshakati, Namibia, measuring 150 kilometres (93 mi).