• November 22nd, 2019

Nkurenkuru, DBN land deal in limbo


NKURENKURU - The Nkurenkuru Town Council has since 2018 been waiting for the approval of the Ministry of Urban and Rural Development (MURD) for it to enter into a joint-venture partnership with the Development Bank of Namibia (DBN) to service 333 residential plots.

The delayed approval has put on halt the eventual construction of the planned houses.
Initially, the two entities were to enter into a Private-Public Partnership (PPP) but were at some point advised by MURD to go for a joint-venture instead and they reworked the content of the deal to a joint-venture and resent it to the ministry for approval but to date no response has been given by the line ministry, says the Nkurenkuru CEO Petrus Sindimba.

Sindimba reiterated to New Era in an interview that DBN already committed funds for the project to service 333 erven. 

“Just like I informed you last year, council last year approved the agreement and following procedures, council forwarded it to our line ministry to be forwarded to the AG for scrutiny and approval. Once that happens, it will make way for us to sign that agreement with DBN,” Sindimba noted.

In terms of the joint venture, Nkurenkuru will avail un-serviced land and DBN will provide funds to service this land by putting up services like water, roads, electricity, sewer and pump stations. After servicing this land, DBN and Nkurenkuru will sell the plots and share the profit after DBN has subtracted its development cost. 
In terms of profit sharing, Nkurenkuru will get 70 percent while DBN will get 30 percent.
“It’s a full extension that we have planned to service through this agreement – it will be done on Nkurenkuru Extension 6. We want it fully serviced and we are looking at 333 plots,” Sindimba added.

Institutions are coming to the town but the town is unable to offer them land, where they can establish themselves. People migrating to Nkurenkuru due to employment and business are in dire need of serviced land on which to build.

“But although we have vast land, there are few serviced plots which are are all given out, and some not fully serviced. You know towns are encouraged by government to enter into PPP agreements to deliver services to our people, which is what pushed us to opt for an agreement like this one. And according to DBN, once council receives the approval, they will start with the procurement process which will lead to appointing a contractor to begin,” reiterated Sindimba. New Era in pursuit of answers tried to get a response from the line ministry but no response was forthcoming as its phones went unanswered.


John Muyamba
2019-09-05 07:04:02 | 2 months ago

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