The Namibia Water Corporation (NamWater) and Swakop Uranium are targeting financial close by July 2026 for the N$2.1 billion Erongo Sunam Desalination Plant, with construction expected to begin shortly thereafter and commercial operations scheduled for June 2028.
The project, structured as a public-private partnership, will be funded through a 40% equity and 60% debt financing model.
Speaking on the project’s progress, alternate board member Onni-Ndangi Ithete said Swakop Uranium holds a 70% stake in the joint venture, while NamWater owns the remaining 30%.
Government has committed N$200 million to support NamWater’s equity contribution.
“We are glad to report that we have received support from our central government in equity support to NamWater for the project in the amount of N$200 million as a commitment from the government for NamWater’s equity participation in the project,” Ithete said.
He said 11 of the project’s 13 key preparatory milestones have already been completed, including environmental clearance, the seawater abstraction permit and a draft power supply agreement with NamPower.
Construction bids were submitted on 8 May 2026, with the preferred contractor expected to be selected before the end of June.
The desalination plant will produce 20 million cubic metres of water annually, providing a climate-independent water source for the Erongo Region.
“The capacity determined to be viable for implementation at this stage is 20 million cubic metres per year. We are targeting financial close by July 2026, and once the project commences, commercial operations are expected by June 2028,” Ithete said.
The project will operate through a Special Purpose Vehicle, Erongo Sunam Desalination (Pty) Ltd, established to develop, construct, commission and operate the facility.
Under the approved Supply Scenario 1 (SS1), the plant will supply water exclusively to the Erongo Region. NamWater will purchase all water produced before distributing it to customers, including Swakop Uranium’s Husab Mine, which will serve as the anchor offtaker, and municipalities along the coastal corridor.
Ithete said broader supply scenarios that include Windhoek and Botswana remain part of longer-term planning but have not yet been approved.
The project is expected to create approximately 500 direct construction jobs, together with permanent operational positions and business opportunities for local suppliers in sectors such as logistics, security and accommodation.
The desalination project originates from a July 2021 Cabinet decision appointing NamWater as the executing agency. Erongo Sunam Desalination (Pty) Ltd was established through a joint venture agreement signed on 5 December 2025 and incorporated on 27 January 2026.
