NamWater seeking billions Edson Haufiku Thursday, September 11, 2014 - 07:45 News The national water utility, NamWater, is entering a high capital replacement period and is in dire need of about N$12 billion to undertake a massive replacement programme of all the corporations’ infrastructure. A total of N$7,5 billion is expected to be spend on replacing its water infrastructure in the next 5 to 10 years alone. According to NamWater records, with the exception of canals, the bulk of the company’s infrastructure such as pipelines and reservoirs, which are cheaper to replace instead of constantly being repaired, will come to the end of their economic life in the next five to eight years. This replacements pose a major capital challenge to NamWater as it has to be done without new customers, which means an increase in tariffs to pay for the project. Another reason for NamWater’s request for a tariff increment is in recognition of the annual increment of input costs such as electricity, personnel expenditure, fuel, maintenance and other expenditures essential to NamWater’s mandate of treating and transferring bulk water to consumers. In meeting these goals, NamWater has for the past months unsuccessfully been looking at various measures of accumulating these funds before finally settling on increasing tariffs. The corporation is currently upgrading the Windhoek/Von Bach water supply system, which will cost the water utility over N$200 million in its attempt to improve the transfer capacity from the dam. NamWater’s communication practitioner Tommy Numbala confirmed the imminent tariff increases, but urged that the nation will cordially be informed before the tariffs are Gazetted and implemented. “We did propose an increase in tariffs to Cabinet which are likely to be implemented during the next financial year, if Cabinet gives the go-ahead. The increases will however also vary from region to region,” Numbala said. The water supply areas that will be hard hit by the increases include, Khomas (excluding Windhoek), Omaheke, parts of Hardap, Kavango and Zambezi Regions, which will see an increase of 14% by 2015. Cuvelai, which incorporates Oshana, Omusati, Ohangwena, Oshikoto, Karas, Erongo and parts of Kunene Region will see an increase of 15%, while the Brandberg which incorporates Otjozondjupa and part of Kunene will have to do with a 13% increase. Taking into account the capital NamWater has spent, it could only record a net operating surplus of N$82 139, which excludes interest on income during the financial year ended 31 March 2013.
Posted on: Tue, 16 Sep 2014 12:31:39 +0000
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