The Husab mine has stepped up to assist the government with the establishment of a much-needed second desalination plant to be constructed at the coast.
NamWater CEO Abraham Nehemia on Wednesday stated that the uranium mine stepped in at a crucial time, and saved the government from mobilising some N$3 billion needed for the project.
“Husab mine has the necessary funds that are required for the project, and that is going to help us a lot because we were supposed to mobilise about N$2.5 to N$3 billion to be able to do this project,” said Nehemia during a government information sharing session.
The national water utility CEO noted that discussions are at an advanced stage, and financial closure is expected to take place before the end of this year.
Financial closure refers to the point in a financial transaction or business deal, where agreements are finalised, all necessary documents are signed and funds are made available for use.
“After the financial closure, between 18 months to two years, we should have the plant in place,” he added.
The desalination project is designed in three stages.
The first is erecting the plant.
Phase two is supplying the coast with water needs before extending the supply to Windhoek and then to Gaborone in Botswana.
On the Gaborone supply, Nehemia noted there is a bilateral commission established between Namibia and Botswana to scrutinise the agreement.
Agriculture minister Calle Schlettwein said in April the joint venture will see the construction of a 20 million cubic metre desalination plant.
Over the past 10 years, the mining industry in the Erongo region has been complaining about operation disruptions due to a shortage of water as well as sulfuric eruptions in the ocean.
Plans for the second desalination plant have been in the pipeline after the government opted not to buy the Orano desalination plant at Wlotzkasbaken in 2016 due to its cost.
The plant at that time was offered to the government for N$3 billion by Areva Resources on the basis that such a utility cannot be privately owned.
The desalination plant supplies close to 50% of fresh water to the region’s consumption and several mines, including Rössing Uranium.
Challenges
Furthermore, Nehemia shared some challenges the company is facing, such as financial sustainability in terms of high debt and no tariff increase for five years.
“We are now over N$2 billion in our debtor’s book. We are working together with the government to look at the debt of local authorities. That is where the money owed to us is lying,” he stated.
Other challenges involve ageing infrastructure, which is a costly exercise.
It is also declining or stagnant water demand because Namibia is not expanding enough for them to make more sales. -mndjavera@nepc.com.na