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Home Business & Economy

Lüderitz awards bids worth N$80 million for transformation strategy

by editor
February 28, 2025
in Business & Economy
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Lüderitz has awarded contracts worth N$80 million as part of its transformation strategy aimed at improving infrastructure and services in the town.

The projects include upgrades to the electrical and water supply systems, municipal service improvements, and urban planning initiatives.

Lüderitz Mayor Phillippus Balhao told The Brief that the awarded contracts cover several key areas, including the supply and delivery of prepaid electrical and water meters, electrical services for residential areas in Nautilus, and the construction of municipal services in Nautilus and its extensions.

Additionally, a consultant has been procured for medium and low voltage electrical services for Nautilus Extensions 4 and 5, along with the supply and delivery of electrical goods and cables for maintenance.

“These projects are aimed at improving our electrical and water supply systems, enhancing municipal services, and addressing our town planning needs to ensure sustainable growth,” said

Further investments include the procurement of a town planning consultant to implement the Infill and Densification Strategy and critical repairs to the effluent treatment plant.

The Mayor noted that the construction of municipal services in Nautilus Extension 4 is also among the approved projects.

“In addition to these developments, we intend to commence the Integrated Urban Development in Lüderitz and Aus (ILA) project in the coming months, utilising an additional €5 million grant provided by the German government,” Balhao said.

He explained that the German Society for International Cooperation (GIZ) will oversee the expenditure of the grant, ensuring efficient implementation of the urban development initiative.

The project is expected to enhance housing and infrastructure in Lüderitz and Aus, contributing to long-term sustainability.

However, challenges remain in executing the transformation strategy.

The mayor highlighted a significant housing backlog, limited serviced land for housing and industry, logistical procurement delays, and funding constraints as some of the key obstacles to progress.

“We do face some challenges in this transformation process. These include a significant housing backlog, lack of serviced land for housing and industry, logistical delays in procurement, lack of funding, the need for capacity, and ensuring that all projects are completed on schedule and within budget,” Balhao emphasised.

Despite these challenges, he said the municipality is committed to ensuring timely project completion while maintaining transparency and community engagement. Open communication with residents and stakeholders will remain a priority to address concerns that may arise during implementation.

“We appreciate the support of our residents and stakeholders as we work towards a more modern and efficient Lüderitz,” the mayor said.

This comes as Lüderitz is poised for significant economic growth following revelations that oil majors Shell and TotalEnergies, currently engaged in appraisal and exploratory drilling off Namibia’s coast, have responded to government calls to establish their base of operations at the town rather than at Walvis Bay. 

This development follows an appeal by Mines and Energy Minister Tom Alweendo in November 2022, urging the two companies to station their operations at Lüderitz to stimulate the local economy. 

Beyond the oil sector, several other companies are also contributing to economic expansion of Lüderitz.

Kelp Blue, which last year secured a 15-year commercial licence to cultivate Giant Kelp over a 6,400-hectare offshore site, plans to invest more than N$3 billion in the Namibian economy over the next three to four years. 

Additionally, Benguela Blue Aqua Farming, a Namibian aquaculture company, aims to raise N$1.7 billion in capital for equipment, infrastructure and human capital to support its new salmon farming project at the town.

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