Allexer Namundjembo
NamWater has received a positive response from local authorities as it works to recover the N$2.4 billion owed to the corporation.
Lot Ndamanomhata, NamWater’s spokesperson, on Monday, told the Windhoek Observer that most local authorities approached for payment have shown a willingness to settle their debts.
“We are pleased with the overwhelmingly positive responses we’ve received from local authorities so far. We will continue to approach other local authorities with outstanding debts and encourage them to meet their financial commitments,” he said.
This positive turn comes after a report earlier this month revealed that local authorities were responsible for a large share of the water utility.
The Rundu Town Council owes N$333.9 million, while the Rehoboth Town Council owes N$108.5 million.
The financial strain has raised concerns about the long-term sustainability of Namibia’s water supply, as NamWater relies on revenue from water sales to fund its operations.
Following initial discussions, NamWater plans to expand its debt recovery efforts to other local authorities with outstanding balances. Ndamanomhata said the company is encouraged by the early cooperation and expects more local authorities to follow.
Ndamanomhata said the company is encouraged by the early cooperation and expects more local authorities to follow.
“For those that are already complying, we will continue to engage with them to ensure payments are made on time,” Ndamanomhata said.
He added that NamWater is committed to supporting those who have entered repayment agreements.
“We understand that some local authorities may need time to clear their debts. In those cases, we will provide support and guidance to ensure they honour the repayment agreements. It is important for us to help them meet their commitments, as it will ultimately benefit the sustainability of the entire water supply system,” Ndamanomhata added.
NamWater said the initiative is part of a broader effort to stabilise its finances and ensure water supply services across the country are not disrupted.
Despite the positive engagement, NamWater continues to face challenges in managing its finances.
Rising operational expenses, especially energy prices, have placed further pressure on its budget.
With 87% of Namibia’s population relying on NamWater for access to water, the corporation has emphasised the importance of timely payments.
It also warned that failure to settle debts could result in stricter measures to protect national water supply services.
NamWater has stressed the need for ongoing investment in water infrastructure and service expansion, especially in underserved communities.
The Rehoboth town council, which owes Namwater over N$108.5 million, has made an arrangement with Namwater on repaying the debts.
Rehoboth’s mayor, Justin Coetzee, has confirmed that the council has an arrangement with Namwater on paying their debts.
“We had discussions with Namwater; we have entered a monthly payment arrangement, ” he said.
The Rundu Town Council’s spokesperson, Benjamin Makayi, did not respond to the questions sent to him.
Windhoek Observer wanted to know if Rundu Town Council, which owes Namwater N$333.9 million, had also entered into an agreement to repay the outstanding debt..
