City to start repaying loan for Goreangab plant

THE City of Windhoek has decided to begin repaying N$15,2 million of a loan it took from the European Investment Bank for the part funding of the Goreangab Reclamation Plant, rather than transfer the plant to a private commercial entity.

The latter decision would have meant that this amount could have been converted into the City’s equity contribution in the private commercial entity and the City would not have to repay that amount until June 2018. It will take the City 15 years to repay the N$15,2 million – in annual equal instalments.At its meeting last month, the City council agreed with an opinion from Ernst and Young that it would not be in its best interests to execute the conversion option under the risk capital loan.Instead, the City will start repaying the loan at the end of July.The City has N$11,4 million available for this purpose.The City recently won a High Court case against Standard Bank South Africa, which now has to pay it a financial guarantee of N$3,015 million for a range of problems experienced with the water-treatment plant after it was designed and built by South African Company DB Thermal.The company charged the City N$92 million to build the plant, which was handed over two years later than anticipated in 2002.It will take the City 15 years to repay the N$15,2 million – in annual equal instalments.At its meeting last month, the City council agreed with an opinion from Ernst and Young that it would not be in its best interests to execute the conversion option under the risk capital loan.Instead, the City will start repaying the loan at the end of July.The City has N$11,4 million available for this purpose.The City recently won a High Court case against Standard Bank South Africa, which now has to pay it a financial guarantee of N$3,015 million for a range of problems experienced with the water-treatment plant after it was designed and built by South African Company DB Thermal.The company charged the City N$92 million to build the plant, which was handed over two years later than anticipated in 2002.