Rundu mayor calls for govt help to tackle N$334m water debt

Rundu mayor Andreas Jikerwa says government may need to consider writing off part of the town’s roughly N$333.9 million debt to NamWater.

He warned that, without intervention, the municipality does not have the financial capacity to settle the amount through its current revenue streams.

Speaking to Namibian Sun on Thursday, Jikerwa said the debt remains one of the most pressing challenges facing the council and was inherited from previous administrations.

Last year, NamWater revealed that local authorities around the country owed a staggering N$2.4 billion, with Rundu Town Council owing the highest amount at N$333.9 million. Jikerwa noted that, for the council’s sustainability, an urgent solution is required.

“The issue of the debt to NamWater is a long-standing matter. As the leadership of Rundu Town Council, we came and inherited this situation,” he said.

The mayor acknowledged that the council’s current income streams are insufficient to settle such a large obligation, saying intervention from the line ministry will be essential in resolving the matter.

“The line ministry has to intervene so that we can find a solution. The revenue we are currently collecting is not sufficient to pay off the debt,” he said.

Step by step

He suggested that one possible approach would be for council to gradually begin settling the debt using a portion of its revenue while government support is sought.

“We have to reach an agreement with the line ministry. From the little revenue we collect, we can start putting aside a certain amount so that we begin paying bit by bit while the ministry meets us halfway,” he said.

However, he indicated that a more drastic intervention may ultimately be required to resolve the issue.

“One of the options is for the debt to be written off. That is something that has to be discussed with the line ministry so that the town council can move forward,” Jikerwa said.

The mayor added that improving revenue collection will also be key to stabilising the municipality’s finances. He urged residents to settle outstanding municipal bills, saying the council relies heavily on those payments to maintain services.

“We have to engage residents so that they understand the importance of settling their water bills and rates. Without that revenue, the town council cannot operate properly,” he said.

Land servicing

Beyond improving compliance, the council also plans to expand its revenue base by servicing currently unserviced land within the town.

According to Jikerwa, surveying and servicing land will allow the municipality to allocate plots, which will in turn generate additional income through rates, water connections and other municipal services.

“That is the only way we can increase our revenue. Once land is serviced and allocated, it will bring income through rates, water and other services,” he said.

Lasting solutions

Despite the financial strain, Jikerwa said council is pushing ahead with several infrastructure projects aimed at improving service delivery across Rundu.

Among the priorities is expanding water infrastructure to underserved parts of the town in collaboration with NamWater.

“In some areas the infrastructure is already in place, but what remains is simply to connect residents so that they can start receiving water,” he said.

Council is also exploring the construction of water storage towers that would allow the town to store water purchased from the bulk supplier.

Road infrastructure upgrades are also underway as part of the town’s development plans.

The project, which began last year, is now progressing after a tender was awarded to China Henan International Cooperation Group (Chico) to resurface most roads in the town.

According to Jikerwa, the programme will see roads constructed and upgraded across the town, with some streets gravelled and others tarred.

Electrification and street lighting are also expected to expand across the town.

“When I accepted the position as mayor, my focus was on improving services for residents, especially water supply, road infrastructure and other basic services,” he said.

“But to achieve that, we must also find a lasting solution to the debt that the town council is carrying.”

PLANNING: Rundu mayor Andreas Jikerwa. Photo: Eliot Ipinge