Gammams refurbishment ongoing
Negotiations with financiers planned for 2017
The City of Windhoek will in 2017 enter into negotiations to secure financing for the planned N$450-million refurbishment of the Gammams Water Works in the capital. Commissioned in 1961, attempts to refurbish the plant were only extensively carried out in 2001 while various improvements and modifications were carried out throughout the plant''s 55-year lifespan.
City spokesperson Lydia Amutenya recently updated Namibian Sun on the work done to kick-start the planned refurbishment.
“The project is currently in the process of conducting a financial feasibility study.
Pending the outcome of this, negotiations regarding external financing will commence in the middle of 2017 and if successful, is anticipated to be concluded at the end of next year.
This will see procurement starting only in the beginning of 2018. The aforementioned is a projected timeframe and is subject to the successful conclusion of numerous interim milestones, hence there is no certainty at this point in time.”
Senior spokesperson at the City Joshua Amukugo previously said that the refurbishment of the plant would take three years.
“The entire upgrade is expected to take approximately three years up to commissioning.”
The estimated N$450-million provisional budget for the project would be inclusive of professional fees, actual construction costs and the procurement of new equipment. The project would be refurbished in different phases until its completion
The refurbishment would include a new odour control facility, a newly built secondary treatment facility, new waste piping from the secondary treatment facility to a new, third facility where sludge will be activated, a new primary treatment area such as inlet channels, screens and grit removal as well as a primary sedimentation tank and a new pump station.
The City has in the past also toyed with the idea of privatising the plant. Local media reported that the City was looking at creating a special purpose vehicle (SPV) to attract funding for the project, thus removing the need for the City to finance the refurbishment of the plant.
The SPV would make provision for private sector partners to take up fixed minority ownership in the water treatment plant.
“Granted that approval is obtained from council, financing agencies will be approached for formal discussions with existing and other private sector partners for further development and refinement of the proposed structure.”
The city council sees the establishment of a majority council-owned SPV which allows for a fixed minority ownership from selected private sector partners, as the means to improve existing infrastructure and to improve and accelerate future capacity.
It motivated that funding through the SPV would provide value through access to technology, foreign funding and expert skills.
OGONE TLHAGE
City spokesperson Lydia Amutenya recently updated Namibian Sun on the work done to kick-start the planned refurbishment.
“The project is currently in the process of conducting a financial feasibility study.
Pending the outcome of this, negotiations regarding external financing will commence in the middle of 2017 and if successful, is anticipated to be concluded at the end of next year.
This will see procurement starting only in the beginning of 2018. The aforementioned is a projected timeframe and is subject to the successful conclusion of numerous interim milestones, hence there is no certainty at this point in time.”
Senior spokesperson at the City Joshua Amukugo previously said that the refurbishment of the plant would take three years.
“The entire upgrade is expected to take approximately three years up to commissioning.”
The estimated N$450-million provisional budget for the project would be inclusive of professional fees, actual construction costs and the procurement of new equipment. The project would be refurbished in different phases until its completion
The refurbishment would include a new odour control facility, a newly built secondary treatment facility, new waste piping from the secondary treatment facility to a new, third facility where sludge will be activated, a new primary treatment area such as inlet channels, screens and grit removal as well as a primary sedimentation tank and a new pump station.
The City has in the past also toyed with the idea of privatising the plant. Local media reported that the City was looking at creating a special purpose vehicle (SPV) to attract funding for the project, thus removing the need for the City to finance the refurbishment of the plant.
The SPV would make provision for private sector partners to take up fixed minority ownership in the water treatment plant.
“Granted that approval is obtained from council, financing agencies will be approached for formal discussions with existing and other private sector partners for further development and refinement of the proposed structure.”
The city council sees the establishment of a majority council-owned SPV which allows for a fixed minority ownership from selected private sector partners, as the means to improve existing infrastructure and to improve and accelerate future capacity.
It motivated that funding through the SPV would provide value through access to technology, foreign funding and expert skills.
OGONE TLHAGE
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