Phase one of the project, the rebuilding and tarring of the road between Rundu and Nkurenkuru in the north-eastern Kavango Region, will begin in May next year.

The second part of the project, between Nkurenkuru and Elundu, east of Eenhana in the Ohangwena Region, will start in 2009.

"At the moment, the road is very bad and a number of accidents have occurred on it," Kavango regional Governor John Thiguru told journalists in Windhoek yesterday.

The road covers a distance of 370 kilometres.

He said the road is frequently used by Namibian and Angolan cargo trucks but is in a very poor condition.

"During the rainy season it becomes very slippery," said Thiguru.

This is the largest road-tarring project in Namibia since Independence and, according to Works Deputy Minister Stephanus Mogotsi, its total cost is estimated to be N$810,5 million.

Mogotsi said manual jobs would be given to locals in Kavango and Ohangwena.

Before it reaches Nkurenkuru, the road will go to Siko.

From Nkurenkuru, it will then go to Mpungu, Okongo and will end at Elundu, on an existing bitumen road east of Eenhana.

But the project has been hit by some criticism, which Mogosti said was being made by "detractors".

When asked to elaborate, he said some people were claiming that funds earmarked for the project were being diverted to the Tsumeb-Oshikango railway extension project.

Mogotsi called on the public "to ignore the detractors who are deliberately carrying out a disinformation campaign against the project".

In August, Namibia entered into a loan agreement with the Japan Bank for International Co-operation (JBIC), in which the bank will give N$607,8 million to finance the project.

Namibia will provide N$202,7 million.

Mogosti said for the current financial year, N$20 million has been allocated to the project and has been transferred to the Road Fund Administration for use by the Road Authority, while for the next financial year (2007-2008) N$50 million has been earmarked for the project.

"Tender documents have been submitted to JBIC for approval and tenders will be advertised internationally in November," Mogotsi said.

Namibia will repay the Japanese loan over a period of 15 years, with an interest rate of 0,9 per cent a year.

Loan repayments will not begin for five years.

Asked if strings were attached to the Japanese loan to allow Japanese companies to build the road, Works Permanent Secretary Shihaleni Ndjamba said that was not part of the agreement.

But he was quick to add that if a Japanese company tendered and the price was the best, there would be no problem to grant them the contract.

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