Africa-Press – Namibia. IN an effort to support different infrastructural projects in Namibia, Germany, through the KfW German Development Bank, has loaned the Namibian government over N$2 billion towards the construction and rehabilitation of key Namibian road and water infrastructure projects to foster economic development.
Two loan agreements, in the amount of 40 million EUR and 50 million EUR (equal to N$746 and N$932 million respectively), were signed by the Namibian Government, NamWater and KfW. The loans will be funding the Direct Potable Reclamation Plant II (DPR 2) in the central area of Namibia and the Namibian Water Sector Support Program (WSSP).
In addition, a loan agreement in the amount of 20 million EUR (about N$373 million) was signed by the Namibian Government, Roads Authority (RA) and KfW. This loan will be funding the rehabilitation and upgrading of the B2 Road section between Usakos and Karibib.
The loan agreements were signed on 13 December 2022 by Ipumbu Shiimi, Minister of Finance and Public Enterprises, the Chief Executive Officer (CEO) of NamWater, Abraham Nehemia, the CEO of RA, Conrad Lutombi, and Beatrice Lucke, the Country Director to Namibia of the German Development Bank, KfW.
In a joint press statement, the two governments said that as the driest country in Sub-Saharan Africa, with more than 80% of its land area covered by desert or semi-desert, Namibia regularly experiences extreme and prolonged periods of drought.
“This results in a highly sensitive water supply situation for the country and the Windhoek central area which requires precise demand management, management of existing water resources as well as urgent development of new ones,” the two governments explained.
They further noted that, the KfW Development Bank, on behalf of the German Ministry for Economic Cooperation and Development, is financing projects that will help safeguard Namibia’s water supply. A concessional loan in the amount of 40 million EUR (N$746 million), helping to secure the Water Supply for the Central Area of Namibia through the construction of a second Direct Potable Reclamation Plant (DPR 2), was signed. In addition, a second concessional loan to the value of 50 Million EUR (N$932 million) was signed to support the Namibian Water Sector Support Program (WSSP).
The two governments also explained that although Namibia has one of the best road networks in Africa, access and availability to transport services, and thus the opportunity to participate in social and economic life, is extremely unevenly distributed regionally and between the different income groups. In addition, the costs for mobility are very high in an international comparison.
The finance ministry of Namibia said that the Namibian Government has recognised the importance of transportation in its strategic objective set out in the NDP5 and HPP2. This, with a view to become a logistics hub in the SADC region. It explained that the N$373 million funded for the Usakos – Karibib road rehabilitation contributes to the economic objective of having a well-functioning and high-quality transport infrastructure connected to the most important local and regional markets as well as to the port of Walvis Bay. The road will be upgraded to a 2 (plus) one (1) grade similar to Okahandja Karibib Road.
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