80% of regional, local authorities want to join southern power distributor

The chairperson of the Hardap Regional Council, Gersohn Dausab, on Friday said 80% of regional and local authorities in the Hardap and //­Kharas regions have given notice of their intention to become shareholders of the anticipated Southern Regional Electricity Distributor (Sored), of which the name has now been changed to //Au-Ob Electricity Distribution Company.

Dausab said none of these authorities have, however, signed a shareholders’ agreement yet as they still need to take resolutions on council level, which would authorise them to become shareholders.

“We met with all the regional and local authorities last week to review the shareholders’ agreement and the asset transfer agreements. During this meeting we noted a synergy is forming and the councils gave notice of their intention to join,” he said.

Dausab said the new name represents the Fish River, which is a heritage symbol of the Hardap and //Kharas regions.

The minister of urban and rural development, Erastus Uutoni, however, snubbed this meeting, including the ministry officials who were invited to the review.

In a letter to Dausab, Uutoni said his ministry is only aware of the establishment of Sored, which he is supporting.

Uutoni reminded the involved regional and local councils that his ministry has only been in consultation with the Ministry of Mines and Energy and the Electricity Control Board regarding the formation of Sored.

“The ministry is not aware of the amended shareholding agreement that referred to the company as ||Au-Ob Electricity Distribution Company.

“Furtherto, I want to urge the regional and local authorities invited to this meeting to keep in mind that the Sored shareholding agreement, which underwent legal examination, is the only one which received approval from the Office of the Attorney General,” Uutoni wrote.

He said his ministry was solely committed to supporting the establishment of Sored, in which NamPower is a participant.

Dausab said the meeting proceeded with the anticipated shareholders’ meeting as the minister’s letter did not suggest that the meeting should not take place.

“We have been consulting the minister’s office on and off about this company, and even sent the concept note and financial projections to his office on 8 August.

“But that is not a train smash, as we are still designing the type of company we want to establish, and it was an opportune time for the ministry officials to be part of and observe and also give input.

“However as soon as we are ready we will take the final prototype to him for comment,” said Dausab.

He said the shareholders’ agreement from the Office of the Attorney General has not been amended.

“We are working with the same document and have not changed a single thing. We only gave the company a name befitting to us.

“The only discussion we are having is why we should have NamPower as a shareholder. The company has done nothing to address the generational debt we have and has shot down our proposals,” Dausab said.

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