The Treasury on Wednesday signed a €50-million (N$1 billion) concessional loan agreement with KfW Development Bank for the rehabilitation and extension of the wastewater treatment plants of Gammams and Otjomuise in Windhoek.
The Treasury was represented by the Minister of Finance and Public Enterprises, Iipumbu Shiimi, while KfW was represented by Country Director Beatrice Lucke.
According to Shiimi, the loan comes at a critical point when Namibia is battling with climate change, hence these developments are crucial in improving the livelihood of people, as the population in the capital continues to increase.
The funds are provided through a concessional loan in the local currency with a repayment period of up to 20 years, at a 9.95% interest rate.
Approximately N$700 million will be geared towards the construction of the second reclamation plant, while N$300 million will be for the upgrades of the Gammams and Otjomuise treatment plants.
The upgrades will be done in parallel with the development of a second Direct Portable Reclamation Plant, which will be fed by the existing infrastructure. For that to be possible the current systems and structures need to be modernised.
“This development will increase the amount of water that can be reused, allowing for up to 50% of the City’s water supply coming from direct reuse, doubling the current 25%, being provided through Goreangab Direct Portable Reclamation Plant.
This plant was also funded by KfW in 1990 when first reclamation reached its lifespan,” said German Ambassador to Namibia, Thorsten Hutter.
Hutter highlighted that Namibia is a dry country where water has and remains to be a scarce resource. Thus, he said, there is a need for the country to apply a progressive and innovative stance when it comes to securing continued water supply for the growing population.
The City of Windhoek’s Strategic Executive for Infrastructure, Water and Technical Services, Ludwig Narib, said the construction and upgrades will be undertaken in the next five years. Adding that the funds will be inclusive of design, construction and all related expenses.
“This is a very important undertaking which comes to implementation after eight years of planning and negotiations. A feasibility plant was to be piloted to test the new technology if it is going to work on the planned second reclamation plant, but due to the urgency of addressing water woes, it was resolved to modernise and use the existing form equipment and technology,” said Narib.
“Therefore, this necessitated the upgrades of existing facilities so that they can be enabled to supply water to the next treatment plant, as its current capacity would not manage,” he added.
