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NamWater owed N$2.1 billion

NamWater owed N$2.1 billion

The Namibia Water Corporation is owed a cumulative N$2.1 billion, a situation that has placed it between a rock and a hard place financially.

This figure was released by NamWater spokesperson Lot Ndamanomhata yesterday while laying bare the grim reality of the entity’s financial position.

In a statement, he said NamWater faces substantial financial challenges due to outstanding debts.

“This debt significantly hampers NamWater’s ability to operate on a full cost-recovery basis as it functions not for profit, but for public service,” Ndamanomhata said.

Zeroing into those who owe the water utility money, he revealed that private or individual consumers owe N$312.1 million, while industry debt stands at N$40.3 million.

Meanwhile, irrigation farmers owe NamWater N$22.5 million, and mines owe N$91.8 million.

Furthermore, government offices, ministries and agencies owe the company N$32.9 million.

Municipalities’ debt stands at N$150.1 million, while regional councils owe N$76.6 million.

The figure continues to grow as rural water communities owe N$625.7 million, while town councils’ debt stands at a staggering N$684.1 million.

Completing the list are village councils, which owe N$131.6 million.

“These figures highlight the critical need for timely payments to sustain continuous water services, and support NamWater’s operations,” Ndamanomhata stated.

Interventions

On a positive note, the government, through the Ministry of Agriculture, Water and Land Reform, has allocated over N$1 billion to water-related projects for the 2024/25 fiscal year.

Seventy-six percent of this budget is dedicated to infrastructural development.

“This substantial allocation underscores the government’s commitment to enhancing water infrastructure, and addressing critical supply needs,” he continued. 

NamWater is furthermore implementing integrated water supply initiatives such as the Desalination Plant and Kavango Links Project.

“These projects are pivotal in augmenting groundwater resources and ensuring sustainable water supply, further solidifying Namibia’s water security. The desalination plant, in particular, represents a forward-looking approach to addressing water scarcity by converting seawater into potable water, while the Kavango Links Project is instrumental in connecting disparate water sources and ensuring efficient distribution across regions,” he added.

Infrastructure

At present, NamWater operates an extensive and complex water infrastructure network which includes 4 210 kilometres of pipeline, 17 treatment plants, 377 reservoirs, 19 dams, 574 production sites, 249 monitoring stations, 422 kilometres of canals and 823 boreholes.

“This robust network is vital in delivering water across Namibia’s vast and diverse landscape, ensuring that communities, industries and agriculture have access to this precious resource,” he noted.

Demand vs development

Moreover, the current total NamWater-developed water resources stand at 348 million cubic meters, while the demand is at 180 million cubic meters, Ndamanomhata added.

“The Central Business Unit’s water demand slightly exceeds its developed water resources, necessitating the deployment of integrated water supply systems to address this gap. In the Coastal Business Unit, which has approximately 14 million cubic meters of water resources, the water demand significantly outpaces supply, standing at 26 million cubic meters,” stated the spokesperson.

This imbalance underscores the urgency of expanding and upgrading water infrastructure to meet growing demands.

Challenges

Like any other institution, NamWater is not without issues.

“NamWater faces numerous challenges in its mission to provide reliable water services. Water scarcity, spatial and temporal variability in rainfall, and the distribution of the population across a vast landscape complicate water supply efforts. Additionally, increasing water demand, ageing infrastructure, vandalism and customer payment issues further strain NamWater’s resources and operational capacity,” he added.

In the face of these challenges, however, the corporation vowed to continue meeting the growing water demand, and improving the quality of community life.

“By supplying high-quality water and developing crucial water infrastructure, NamWater is dedicated to enhancing public health, supporting economic development and ensuring sustainable water access for all Namibians. 

These efforts reflect NamWater’s resilience and determination to overcome obstacles, and achieve its vision of universal water access.” 

Furthermore, NamWater’s investment in water infrastructure is a catalyst for national development, he said.

“By enhancing water security, supporting socio-economic progress and moving towards universal water access, NamWater, in collaboration with the government and international partners, is paving the way for a sustainable and prosperous future for Namibia. Despite significant financial and operational challenges, NamWater remains steadfast in its commitment to ensuring that every Namibian has access to potable water,” Ndamanomhata reiterated.

-emumbuu@nepc.com.na