Chinese offer airport billions
The Chinese government is said to have made a tempting offer to finance the upgrading of the Hosea Kutako International Airport, which will cost N$5 billion and upwards.
The offer, according to NBC, was made at the just-ended Forum on China-Africa Cooperation (FOCAC) summit in Beijing, where the state broadcaster was part of President Hage Geingob's delegation.
According to NBC, the Chinese government is believed to have offered a 90% loan, repayable at 2% interest rate, while the rest of the money would come in the form of a grant to the Namibian government.
Negotiations are said to be ongoing.
Geingob recently welcomed Chinese investment, saying: “We are already reaping benefits from this elevated relationship in the form of the Hosea Kutako Airport road upgrading project. We appreciate the rapid progress of implementation regarding this project, including the five-year grace period offered by the People's Republic of China.”
The Chinese government offered US$60 billion in financing to Africa, in the form of loans and grants, at the (FOCAC) summit.
This forms part of China's Belt and Road Initiative, which focuses on improved links to parts of Asia, Europe and Africa, through the development of transport infrastructure.
In December 2015, the Namibia Airports Company (NAC) awarded a N$6.8 billion tender for the upgrade and construction of the Hosea Kutako International Airport to Chinese state-owned firm, Anhui Foreign Economic Construction Group.
Geingob subsequently cancelled the tender, citing irregularities in the manner it was awarded.
The finance ministry had also said its awarding had been in contravention of the State Finance Act.
This led to running court battles, which ended with a Supreme Court ruling delivered in March last year, which vindicated the head of state.
Meanwhile, the World Bank recently advised the Namibian government to finance the planned airport upgrading on a public-private-partnership basis.
“A public-private partnership would allow for the required development and enhancement of the Hosea Kutako International Airport's infrastructure, while generating budget efficiencies and fiscal relief for government to sustain the rest of the airport network,” a World Bank report said.
OGONE TLHAGE
The offer, according to NBC, was made at the just-ended Forum on China-Africa Cooperation (FOCAC) summit in Beijing, where the state broadcaster was part of President Hage Geingob's delegation.
According to NBC, the Chinese government is believed to have offered a 90% loan, repayable at 2% interest rate, while the rest of the money would come in the form of a grant to the Namibian government.
Negotiations are said to be ongoing.
Geingob recently welcomed Chinese investment, saying: “We are already reaping benefits from this elevated relationship in the form of the Hosea Kutako Airport road upgrading project. We appreciate the rapid progress of implementation regarding this project, including the five-year grace period offered by the People's Republic of China.”
The Chinese government offered US$60 billion in financing to Africa, in the form of loans and grants, at the (FOCAC) summit.
This forms part of China's Belt and Road Initiative, which focuses on improved links to parts of Asia, Europe and Africa, through the development of transport infrastructure.
In December 2015, the Namibia Airports Company (NAC) awarded a N$6.8 billion tender for the upgrade and construction of the Hosea Kutako International Airport to Chinese state-owned firm, Anhui Foreign Economic Construction Group.
Geingob subsequently cancelled the tender, citing irregularities in the manner it was awarded.
The finance ministry had also said its awarding had been in contravention of the State Finance Act.
This led to running court battles, which ended with a Supreme Court ruling delivered in March last year, which vindicated the head of state.
Meanwhile, the World Bank recently advised the Namibian government to finance the planned airport upgrading on a public-private-partnership basis.
“A public-private partnership would allow for the required development and enhancement of the Hosea Kutako International Airport's infrastructure, while generating budget efficiencies and fiscal relief for government to sustain the rest of the airport network,” a World Bank report said.
OGONE TLHAGE
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