Water crunch hurts building projects

Latest figures from the building sector prove the dire effect water constraints have had on construction in Windhoek.
According to researchers at IJG-Securities, the City of Windhoek approved 108 building plans in June, valued at about N$155.7 million.
That figure is significantly lower than the 1 317 plans approved in June last year, and in value terms represents a 13.3% drop compared to N$958.2 million in June last year.
“This year-to-date decrease in the number of plans approved is due to many factors, including a fall in demand, slower approval of plans from the municipality, and water constraints in Windhoek,” IJG-Securities says in its building plans report for June 2016.
Compared month on month, six more buildings were approved in June than in May, with the N$155.7 million these plans represent 184.2% above the May figure.
Among the plans approved in June were 19 residential units and 86 additions.
“The total value for residential units and additions approved in June stood at N$37.1 million and N$94.9 million, respectively,” the researchers said.
The number of commercial and industrial plans approved during the month increased to just three, at a value of N$23.7 million.
Explaining the dire water situation facing central Namibia, the IJG-Securities team said the latest NamWater dam level report (dated 11 July 2016), showed that all three dams supplying water to Windhoek were at around 8% full capacity, considered the lowest abstraction capacity, and expected to run dry by December 2016.
“As a water-heavy industry, the current water situation is restrictive to large-scale construction activity. This further suggests that we could see fewer building plans approved by the City of Windhoek going forward,” the IJG-Securities report reads.
“Consequently, if the water condition in the central region deteriorates further, or we see more water restrictions and new tariffs being introduced, this could have a further adverse impact on construction activity around Windhoek.”

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