The African Development Bank (AfDB) has warned of serious delays and risks affecting the Otjiwarongo Waste Water Treatment and Solid Waste Management Public-Private Partnership (PPP) project.
The initiative, which is intended to upgrade wastewater treatment, waste disposal and energy recovery systems, has been hampered by extended procurement lead times for key consultancy assignments.
In its latest report, the AfDB said the late start of the Transaction Advisory Services and the Environmental and Social Impact Assessment (ESIA) had disrupted the original project schedule.
“The delays have affected the overall project schedule, particularly the commencement of consultancy services, which were initially expected to begin earlier in 2025,” the bank stated.
The AfDB rated the project’s overall performance as moderately satisfactory but identified procurement progress as a major concern.
It said both consultancy assignments are now expected to commence in early Quarter 3 of 2025, provided there are no further setbacks in finalising and mobilising contracts.
“It is now envisaged that both assignments will commence in early Quarter 3 of 2025, assuming no further delays in contract finalisation and mobilization,” the report noted.
The bank urged the Executing Agency to accelerate evaluations and approvals in order to meet the revised deadlines.
“The Executing Agency aims to finalise evaluations, secure necessary approvals, and sign both consultancy contracts by the first week of August 2025,” the AfDB said.
Inadequate implementation capacity within Otjiwarongo Municipality was also highlighted as a key risk.
The bank advised the recruitment of a dedicated project management team, while emphasising the need for stronger political support and stakeholder engagement.
It further warned that limited developer interest remained an obstacle, requiring rigorous PPP structuring and investor outreach.
Despite the setbacks, the AfDB stressed that the project remains aligned with Namibia’s development priorities and could regain momentum in the second half of 2025 if corrective measures are taken.
“With the planned acceleration, the project is expected to regain momentum in the second half of 2025. Continued close monitoring, proactive coordination, and timely decision-making will be essential to maintain progress and avoid further delays,” the report stated.
The AfDB confirmed that it has placed US$ 20 million (about N$370 million) in its 2028 pipeline for potential financing once feasibility and environmental studies are complete.
The Otjiwarongo Waste Water Treatment and Solid Waste Management PPP is a feasibility-stage project under Namibia’s PPP Act. It aims to deliver a modern wastewater treatment plant, waste-to-energy facility and supporting infrastructure.
