Millions more for Neckartal

The Neckartal Dam near Keetmanshoop is expected to be finished in the first half of next year after the government made extra funding available.

18 December 2017 | Infrastructure

At least N$1.3 billion will be defrayed from the Infrastructure Development Fund during the 2017/18 financial year for the Neckartal Dam project.

This is according to agriculture minister John Mutorwa, who said if all goes according to plan the Neckartal Dam near Keetmanshoop will be completed during the first half of 2018.

Speaking at the annual general meeting of NamWater, Mutorwa said the ministry had faced a serious shortage of funds to pay contractors and consultants building the Neckartal Dam during September and October.

Following high-level discussions through the Cabinet Committee on Treasury the following recommendations were later endorsed by the cabinet.

The ministry allocated N$155 million from its development budget and NamWater advanced N$600 million guaranteed by the government.

This year, Salini Impregilo SpA, which was awarded the contract to build the dam near Keetmanshoop, stopped operations at the construction site three times because of the government's non-payment.

The agriculture ministry said in October that the cost of building the dam had escalated from N$3.2 billion to N$5.7 billion.

Mutorwa further elaborated on the drought experienced in the country last year.

He said even though Namibia is prone to drought, the country experienced its most devastating drought last year.

“It was during 2016 when the central areas of Namibia including Windhoek were gloomily faced with a clearly distinct and visible possibility of running dry that the indispensable and irreplaceable value of water as a life-giving and life-sustaining commodity came visibly to the fore for all to see, feel and experience,” he said.

He said water is a commodity whose importance is usually taken for granted, particularly when it is available.

According to Mutorwa, the drought experienced during the 2016/17 rainy season resulted in the government through the Cabinet Committee on Treasury instructing NamWater, together with the Cabinet Committee on Water Supply Security, to implement water-related capital projects on an emergency basis.

This is being done in collaboration with the City of Windhoek to guarantee that central Namibia, including Windhoek, does not run dry.

The water capital projects did not have funding from the treasury or from government's drought relief emergency budget of 2016.

“That is how bad and worrisome the situation was at that time,” Mutorwa said.

According to him, Namwater allocated N$235 million with which the Cabinet Committee on Water Supply Security could upgrade the water infrastructure at Kombat and Berg Aukas, the Eastern Water Carrier and the Von Bach Dam ,as well as drilling emergency boreholes in and around Windhoek.

“NamWater was and remains up to today the saviour.”

He added that as per cabinet decision NamWater needs to be refunded for these expenses, at least for water infrastructure that was funded with part of the N$235 million for Windhoek.

“The fact is those assets have virtually become the City of Windhoek's assets; they are and shall remain part and parcel of the City's balance sheet.”

Mutorwa added that the prevailing economic environment in the world, and in Namibia specifically, has made trading conditions quite unfavourable.

For example, the mining industry's demand for water is not generally guaranteed in the foreseeable future as all the mines have been negatively affected by low commodity prices.

Mines are the biggest and more reliable customers of NamWater.

ELLANIE SMIT

Similar News

 

Taskforce for B1, B2

1 day - 24 April 2018 | Infrastructure

One of the priorities for the transport ministry during the current financial year is the establishment of a taskforce for the B1 and B2 highways,...

Fuel storage ready by June

2 days ago - 23 April 2018 | Infrastructure

As the Walvis Bay bulk fuel storage project nears completion, details still remain sketchy about who will manage the N$5.6 billion facility, as well as...

N$1bn Chinese grant for airport road

1 week ago - 13 April 2018 | Infrastructure

The Chinese government will provide N$1.1 billion in financing for the construction of the road leading from Windhoek to Hosea Kutako International Airport.In an exclusive...

Shift focus from housing to tenure

1 week ago - 12 April 2018 | Infrastructure

An urgent reframing on the way the authorities are addressing the issue of housing in order to address informal settlement growth is needed.In a review...

Onus rests on RCC board to avert takeover

2 weeks ago - 11 April 2018 | Infrastructure

The current board of the Roads Contractor Company will have to prove beyond reasonable doubt that they have a turnaround strategy in place in order...

NHE to construct 50 houses at Okahao

2 weeks ago - 10 April 2018 | Infrastructure

The National Housing Enterprise (NHE) will construct 50 houses for low- and middle-income groups at Okahao in the Omusati Region.This was announced on Friday at...

China eyes airport upgrade

2 weeks ago - 06 April 2018 | Infrastructure

ELLANIE SMIT Namibia and China are discussing the possibility of Chinese financing for upgrading Windhoek’s Hosea Kutako International Airport.President Hage Geingob briefed China about the...

Rain destroys Kunene road

1 month - 19 March 2018 | Infrastructure

Heavy rain has washed away portions of the Opuwo-Omakange road in the Kunene Region. The Roads Authority this afternoon confirmed that the road was extensively...

Oompangela dhokutunga omagumbo tadhi ndopa

1 month - 15 March 2018 | Infrastructure

Uuyelele mboka owa hololwa molopota ompe, ya landula komapekaapeko omape ngoka ga ningwa. Omapekaaapeko ngoka oga holola kutya otashi tsikile nokukala ondjodhi itayi yi...

Housing misery

1 month - 14 March 2018 | Infrastructure

A new study on housing provision and affordability in Namibia has delivered a scathing indictment of the government's flawed efforts to address the housing crisis...

Latest News

Neckartal gets lion's share of...

3 hours ago | Economics

About 46.4% of the N$2.137 billion agriculture budget is earmarked for the development of the water sector and for water supply to rural communities in...

Moussongela girls 'safe' in UK

3 hours ago | Justice

A London court has ruled that three daughters of accused sex offender Pedro Moussongela will remain in the United Kingdom and not be returned to...

Totem

3 hours ago | Economics

Quote of the dayI want to raise the spectre of the [tourism] industry doing more in tangible ways. – Keith Sproule, executive director: Abercrombie &...

Gem of a quarter for...

3 hours ago | Business

Jo-Maré Duddy – Namdeb Holdings produced more than half a million carats in the first three months of 2018, the first time in 16 quarters...

Give women a chance in...

3 hours ago | Business

NDAMA NAKASHOLEThe Electricity Control Board CEO, Foibe Namene, has urged men in mining to be mindful of women’s disadvantaged position in the industry, with a...

Site of horror to be...

3 hours ago | History

The largely forgotten German colonial concentration camp at Shark Island in Lüderitz may soon be declared a national heritage site. The National Heritage Council intends...

Tourism Networking Conference to precede...

3 hours ago | Events

Staff Reporter - The local and regional tourism community are all looking forward to the 20th edition of the ever-popular Namibia Tourism Expo which will...

NTTU regroups after strike

3 hours ago | Transport

At least 20 taxi owners retrieved their vehicles at a cost of N$1 000 each yesterday, after the vehicles were impounded on Monday when a...

Govt drags feet on N$6.4m...

3 hours ago | Justice

Finance minister Calle Schlettwein has been given until 12 June to explain the inactivity around a N$6.4 million lawsuit that sees his ministry suing TransWorld...

Load More