N$2.1bn Sunam desalination joint venture launched

An additional 20 billion litres of potable water a year will bolster water security, industrial development and economic resilience along the coast when the Erongo Sunam Desalination (SS1) plant comes online in June 2028.

This is according to Irvinne Simataa, executive vice president of Swakop Uranium (SU) and a board member of Erongo Sunam Desalination, who introduced the new joint venture and its flagship N$2.1 billion project to build and operate a large-scale desalination plant near Henties Bay.

The special purpose partnership between SU, the China General Nuclear Power (CGN) group's Husab mine operator, and NamWater was announced in Windhoek last week.

At the launch, Prime Minister Elijah Ngurare emphasised that Namibia's leadership had long envisioned making large-scale Atlantic desalination a reality.

"This marks an important milestone for Namwater and for Namibia,” Ngurare said.

The board established to lead the new company is chaired by Swakop Uranium chief executive Lou Wei. NamWater CEO Abraham Nehemia chairs the sustainability committee, while Onni-Ndangi Ithete serves as an alternate board member.

Ithete said 11 of the 13 preparatory goals had been completed. The two remaining tasks are securing the land and appointing the preferred bidder ahead of a final investment decision expected in July.

Including government's N$200 million equity contribution through NamWater, Swakop Uranium will provide the remaining N$860 million, or 40% of the estimated project cost. The outstanding N$1.24 billion, or 60%, will be raised through debt, Ithete said.

Nehemia said: "I have been talking about desalination for 25 years. Now to stand here, I am so excited," adding that the project would fundamentally transform the water supply landscape in the Erongo region.

He said NamWater recognised the urgency of water security and pledged to deliver on the project.

“To the people of Namibia, we understand the urgency of water security. We will deliver and we will not fail you,” Nehemia said.

Long-held dream

Ngurare said the project fulfils one of Namibia's long-held ambitions to use desalinated Atlantic water to improve water security inland. Successive governments had envisaged three major desalination schemes serving the central, northern and southern parts of the country, he added.

"One of those three has now come to fruition,” he said.

Ngurare paid special tribute to former agriculture, water and land reform minister Calle Schlettwein, who attended the event, praising his role in advancing the project.

“This is what you worked so hard for,” he told Schlettwein.

Outlining the partnership, Ngurare said Swakop Uranium would finance the bulk of the capital under a 70/30 shareholding structure, while NamWater, the national water utility, would lead implementation on behalf of the government.

He added that government has committed N$200 million in equity to support the strategic investment.

On behalf of CGN, vice president Liu Haijun said: “This is a new milestone in CGN’s long-term commitment to Namibia,”, Liu said.

"We will use water cooperation as a bridge to further deepen collaboration in energy, industry, public welfare, education, and talent development," he added.

“Water brings life. Cooperation creates the future,” Liu said.