Power projects must move faster - Amutse

Energy minister Modestus Amutse has urged regional electricity distributors (REDs) to abandon slow, familiar processes and ensure timely delivery of electricity projects within approved budgets in the same financial year.

Speaking at an engagement in Ondangwa earlier this month, Amutse underscored that delays in electrification are detrimental to both communities and the government. “We must strategically package projects, utilise pre-qualified or shortlisted capacities where appropriate, run activities together, and manage evaluations and awards against a clear timeline,” he said.

The minister said he is concerned over why relatively small projects, such as street lighting, take up to two years to complete. “When a project is announced in January, confirmed in June, and the contractor only arrives on-site in July or September, we cannot treat each of those months as part of the procurement process,” he said.

He identified several issues contributing to delays, including repeated surveys, shifting beneficiary lists, design reviews, unresolved funding, and routine decisions requiring excessive layers of approval.

"We need to confront these delays honestly," he said.

"A governing board should provide oversight but not take on the role of project manager. An accounting officer and executive team must have the authority to make routine operational decisions,” Amutse added.

Maximise benefits

To improve planning efficiency, he directed REDs to prepare projects for the following year by November and December, with January and February dedicated to conducting surveys, designing, preparing bills of quantities, and creating procurement documents. Projects should be put out to market as early as legally possible. “Budget confirmation should initiate execution and not serve as a starting point for planning,” he underscored.

Amutse further stated that the Ministry should not be obligated to draft a new letter for every minor adjustment that can be managed within an approved programme. “If the final procurement value remains within an agreed margin of the approved estimate and adequate funds are available, minor variances should not delay contract awards,” he explained. 

While significant changes must be escalated, routine adjustments should be effectively managed.

The minister also urged REDs and all distributors to adopt a holistic approach by connecting multiple facilities when installing a transformer. “Rather than electrifying just one facility, such as a clinic or school, we should also connect nearby households, businesses, churches, and other establishments within the transformer’s service area," he said.

"Since installing a transformer is costly, connecting the surrounding area maximises benefit and prevents financial loss for the government,” he added.

 Regarding budgets, Amutse stressed: “Every financial year's budget must be fully utilised within that year. No funds should be returned solely to encourage the ministry of finance to allocate additional resources to the institution.”

NamPower, during the meeting, highlighted key challenges, including prolonged procurement processes, limited technical and financial capabilities among contractors, material supply and logistical constraints, delayed funding approvals, and increased pressure from rural-urban migration in peri-urban regions.

Strengthen local capacity

To address these issues, NamPower proposed that government procure essential materials such as transformers, poles, and conductors and distribute them to contractors to alleviate working capital challenges.

They also suggested a comprehensive electrification master plan spanning three to five years, aimed at building the capacity of local contractors and aligning suppliers and financiers across the value chain.