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Negotiations over Areva’s desalination plant at advanced stage

Home Business Negotiations over Areva’s desalination plant at advanced stage

Windhoek

The sale of the Areva’s desalination plant in the Erongo Region to government is said to be at an advanced stage and negotiations are currently in the hands of the official Government Negotiation Team (GNT).

“The Namibia Water Corporation and AREVA Resources Namibia remain committed to carry the process of negotiation to its logical conclusion,” said Areva and Namwater in a joint statement issued last week.

The two organisations distanced themselves from recent media reports that government is considering buying the desalination plant for N$3.5 billion. The Namibian newspaper recently reported that while an environmental assessment said the facility would cost N$1.8 billion, the plant is now being offered to government for almost twice as much.

However, Areva Namibia’s managing director Hilifa Mbako denied allegations that the selling price is N$3.5 billion, calling the amount “hugely above the investment made by Areva for the plant”. The Namibian further reported that Mbako declined to provide the exact amount spent on the construction of the plant, as well as the total amount made from selling water since 2010.

“The alleged amount published in the media is incorrect and exceedingly exaggerated,” said Mbako and Dr Vaino Shivute, Namwater’s chief executive officer, in their most recent statement. Mbako added that the company only intends to recover the capital invested.

According to Areva, the desalination plant, which is approximately 30km north of Swakopmund, has a capacity to produce 20 million cubic metres of fresh water per year and can be upgraded to 26 million cubic meters using the existing structure. The plant’s connection to the NamWater pipeline feeding from the Omdel aquiver was completed in August 2013.

A first agreement between NamWater and Areva was signed in August 2013 to make provision for up to 10 million cubic metres a year to supply water to large consumers in the Erongo Region, who include Rössing Uranium, Langer Heinrich Mine and Swakop Uranium’s new Husab Mine.