Govt delays payment to Salini
The government has deferred a decision to resolve the financial crisis at Neckartal Dam to next week.
The minister of agriculture, water and forestry, John Mutorwa, had informed Salini at Neckartal Dam site last week that the cash flow problems would likely be solved this week.
Salini Impregilo is the Italian contractor building the multibillion-dollar Neckartal Dam in the Berseba Constituency in the//Karas Region.
The government owes the company N$600 million in back payment, while further funds are needed to complete the remaining 10% of work on the project.
In a statement on Tuesday, Mutorwa said the Cabinet Committee on Treasury, in a meeting this Monday, had put together a technical committee to source the money.
“The technical committee was put together to urgently work on detailed and specific possible financing modalities and to report back to the committee of ministers on 25 September 2017,” the minister said.
The technical committee is made up of officials from the ministries of finance, agriculture and public enterprises, the National Planning Commission and NamWater.
In a meeting with Salini on Friday, Mutorwa indicated that NamWater would be approached to pay the overdue invoices for May, June, July and August totalling N$600 million. However, late Sunday, the minister informed Nampa that his ministry, in fact, would be responsible for sourcing the outstanding amount and that NamWater would be approached to take over funding on the remaining 10% of the project.
The reasoning behind roping in NamWater is that the dam would be on the books of the parastatal as an asset once completed.
The proposal was to request NamWater to borrow money and that this loan would be backed by a government guarantee.
“The technical committee's expected recommendations will then be served at the Cabinet Committee on Treasury meeting on 27 September 2017,” Mutorwa's statement said.
He said further details on the financing matter would only be available after the Cabinet Committee on Treasury has met.
The Cabinet Committee on Treasury is also expected to report on the matter to the entire cabinet after its 27 September meeting, Mutorwa added.
Work at Neckartal, meanwhile, has come to an almost complete standstill since the end of August when the company sent around 90% of the workforce home.
Salini project manager Fabrizio Lazzarin said in the meeting with Mutorwa that work would only resume once payment had been received.
Only essential minor works are currently conducted at the dam.
NAMPA
The minister of agriculture, water and forestry, John Mutorwa, had informed Salini at Neckartal Dam site last week that the cash flow problems would likely be solved this week.
Salini Impregilo is the Italian contractor building the multibillion-dollar Neckartal Dam in the Berseba Constituency in the//Karas Region.
The government owes the company N$600 million in back payment, while further funds are needed to complete the remaining 10% of work on the project.
In a statement on Tuesday, Mutorwa said the Cabinet Committee on Treasury, in a meeting this Monday, had put together a technical committee to source the money.
“The technical committee was put together to urgently work on detailed and specific possible financing modalities and to report back to the committee of ministers on 25 September 2017,” the minister said.
The technical committee is made up of officials from the ministries of finance, agriculture and public enterprises, the National Planning Commission and NamWater.
In a meeting with Salini on Friday, Mutorwa indicated that NamWater would be approached to pay the overdue invoices for May, June, July and August totalling N$600 million. However, late Sunday, the minister informed Nampa that his ministry, in fact, would be responsible for sourcing the outstanding amount and that NamWater would be approached to take over funding on the remaining 10% of the project.
The reasoning behind roping in NamWater is that the dam would be on the books of the parastatal as an asset once completed.
The proposal was to request NamWater to borrow money and that this loan would be backed by a government guarantee.
“The technical committee's expected recommendations will then be served at the Cabinet Committee on Treasury meeting on 27 September 2017,” Mutorwa's statement said.
He said further details on the financing matter would only be available after the Cabinet Committee on Treasury has met.
The Cabinet Committee on Treasury is also expected to report on the matter to the entire cabinet after its 27 September meeting, Mutorwa added.
Work at Neckartal, meanwhile, has come to an almost complete standstill since the end of August when the company sent around 90% of the workforce home.
Salini project manager Fabrizio Lazzarin said in the meeting with Mutorwa that work would only resume once payment had been received.
Only essential minor works are currently conducted at the dam.
NAMPA
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