Bureaucracy Inhibits N$100 M Project

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By Chrispin Inambao ORANJEMUND NOBLE intentions by a Namibian-registered consortium to lease a piece of land at the mouth of the Orange River near the Atlantic Ocean to construct a N$100ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ million lodge, are being inhibited by the protected status of the diamond area. If the diamond-mining town is proclaimed sooner rather than later, paving the way for business to pour liquid cash into its virgin tourism, fishing, retail and other undertakings, the planned lodge, once open, could house multitudes of soccer fans who will be in the region for the 2010 global football extravaganza – the World Cup in South Africa. The initiator of the project that could see Namibia getting its slice from this sumptuous pizza, is Diamond Holiday Resorts, a 50/50 venture and the brainchild of former Namdeb employee, Israel U.D Kalenga, and Paul van de Vijer from Leading Lodges of Africa. Leading Lodges have invested in several lodges that are up and running in Namibia. Unlike some ex-Namdeb employees whose fortunes were ill-gotten after they literally bit the hand that fed them, the industrious Kalenga ventured into business the old-fashioned way, taking out a loan here and there and resisting the diamond lure. Financial institutions are reluctant to give loans to businesses wanting to spread their wings to Oranjemund because of the insecurity attributed to its unproclaimed status. “You cannot own property and the banks cannot give you a loan because our town is not proclaimed,” he says, while making the observation “it will be a crime to let Oranjemund become a ghost town like Kolmanskop because Oranjemund has excellent infrastructure and there are a number of projects we can establish to sustain the town forever.” Initially, Kalenga had wanted his Belgian business partner to exploit an eco-tourism that he had in mind but, when his partner asked if the town had any accommodation, he did not respond in the affirmative, and the two went deeper into discussions. Van de Vijer was invited to Oranjemund. He then visited its golf club and the Orange River. When he boated into the estuary around the place where the river pours its fresh-water contents into the sea and where it meets the Namib Desert, it was love at first sight and the two businessmen mooted the idea of the planned five-star lodge. During the visit of the Belgian investor, Kalenga, who is the deputy chairman of the branch of the Namibia Chamber of Commerce and Industry (NCCI), managed to arrange a meeting between NCCI and Van de Viljer where they discussed the proposal further. “He told us he has the money and we should arrange land for the N$100ÃÆ’Æ‘ÀÃ…ÃÆ”šÃ‚ million lodge. We agreed in principle to enter into a 50/50 business venture,” said Kalenga. “We signed a letter of intent between ourselves. Thereafter, I decided to register a company, Diamond Holiday Resorts (Pty) Limited, in order to establish a joint venture with Leading Resorts of Africa,” Kalenga who co-owns the Spar franchise at Oranjemund told New Era. At the moment, the group is negotiating for a piece of land with the relevant ministries, particularly Environment and Tourism, and Regional and Local Government and Housing and Rural Development, and the Oranjemund Town Management Company. Kalenga invited serious entrepreneurs to visit the NCCI at the town and acquaint themselves with the numerous business opportunities that are there for the taking. “I see so many business opportunities. It is a well-known fact that diamonds are not for ever. We have to position ourselves to sustain Oranjemund after mining and, for us to do that, Namdeb and the government should accelerate the proclamation because potential investors would not put their money in Orangemund because of its status,” he stressed. Despite this fact, time appears to be running out, Kalenga says. The officials he had contacted on the urgency of this matter have only been referring him from pillar to post. He is concerned this golden opportunity could despondently slip through his fingers. Cognizant of the fact that diamonds are a finite resource, Cabinet has in principle granted approval for Oranjemund to facilitate diversified sustainable economic development. This week the Minister of Regional and Local Government, Housing and Rural Development mentioned Oranjemund as being among the towns earmarked for proclamation “in the near future.” Frans Nghitila, his spokesman, said, “There are a number of issues that need to be considered before the actual proclamation takes place. It (the town) is a forbidden area and the laws governing it should be harmonized with the country’s laws.” While the Oranjemund Town Management company (OTM), an entity established in July 2004 to primarily steer the proclamation process, in its Proclamation Road Map, has proposed a Technical Committee to steer and to expedite the delayed exercise. In its terms of reference, OTM makes financial guarantees for the tourist trade while the Namdeb Management Committee at a meeting held last month agreed in principle to “excise” Oranjemund town lands and the north-bank road out of the Diamond Licence Area. Apart from his passion for the up-market lodge, Kalenga says the town has so many opportunities such as aquaculture, retail and the establishment of a retirement village. With possibly thousands of retirees once diamonds are exhausted, he is optimistic that the majority of these people would opt to retire at Orangemund rather than start a new life from the regions of their birth, and that they could buy the houses they occupy.