Windhoek
Urban and Rural Development Minister Sophia Shaningwa has urged town councils not to enter into “non-beneficial” public-private partnerships [PPPs] with private investors.
Most local authorities, due to their limited financial capacity, have in recent years jumped onto the bandwagon of PPPs on the basis it is only through these agreements that they can grow their towns. Critics are of the view these agreements are an indirect way of selling land to those that are well-off, with others claiming in most cases the private investors benefit more than the municipalities. During an interview yesterday Shaningwa said she is cognizant of the fact that most town councils are struggling financially to service land and provide housing to their residents, but noted that it should not be an excuse to provide land to investors without getting anything in return.
“It is high time we start changing the manner in which we’ve been applying the status quo… town councils must set viable conditions when entering into agreements with private investors,” she said.
“There is no use entering into a PPP if there are no gains, because at times councils enter into agreements that they do not benefit from,” the urban and rural development minister asserted. She said she would not hesitate to turn down PPPs that do not benefit town councils when the applications reach her desk.
“When you enter into a PPP with private developers that want to build houses I advise that the councils set conditions regarding the prices of those houses, because in most cases this is the reason why housing prices are so high,” she remarked.
She also warned that PPPs should not be used to sideline other land seekers. “We have situations where one company is given a huge piece of land, while others get nothing. This cannot work, we need equitable distribution of resources,” she said.
The minister also expressed concern about town councils dishing out huge tracts of land to companies. “As a responsible town council, when you give one company [land] in an urban area, then what about the others who also want to invest in your town? I have seen unfair distribution of land taking place, but it’s high time we start accommodating everyone,” she said.