NamWater struggles to collect N$2,1b owed by govt

NamWater is struggling to collect about N2.1 billion owed to it by ministries, municipalities and individual residents.

The amount has ballooned from N$1,4 billion recorded in 2022.

NamWater spokesperson Lot Ndamanomhata says the Rundu Town Council alone owes NamWater N$280 million in unpaid bills, while the Zambezi region owes over N$100 million.

“As a result, town councils like Rundu will switch to prepaid bulk water meters to encourage responsible usage and ensure payments are made upfront. NamWater is also considering installing prepaid meters for individual residents as a new standard,” he says.

Ndamanomhata says it is crucial for councils to collect and remit payments from consumers to fund continuous water supply operations, infrastructure maintenance, and expansion.

“NamWater does not charge interest on arrears, but asks clients to commit to monthly payments to maintain manageable balances. By settling their bills, customers contribute to sustainable development, responsible water use, and the preservation of our infrastructure for future generations,” he says.

Ndamanomhata says collective efforts will ensure resilient infrastructure capable of supporting socio-economic growth.

“NamWater will continue to balance cost recovery with the affordability of water services, particularly for rural communities, in line with the government’s water supply and sanitation policy,” he says.

Meanwhile, NamWater chief executive Abraham Nehemia last week said the corporation faces challenges such as financial sustainability due to debt and no tariff increases, ageing infrastructure, a limited product portfolio, and declining or stagnant water demand.

“Managing debtors, securing alternative bulk water sources, and the high costs of delivering water, including maintenance, new infrastructure, purification, and pumping, are also significant issues,” he said during a Cabinet briefing session.

He said supplying water is a very costly exercise.

“Infrastructure such as dams, water pipes, reservoirs, and purification plants are not only expensive to build, but also to maintain,” Nehemia said.

He said money spent on water schemes and related projects should be recovered fully.

“Return on those investments should allow the company to invest further in water infrastructure.”

NamWater is also faced with the major challenge of ageing infrastructure which needs to be replaced.

Nehemia said there is a need for annual tariff increases, as the company has to construct infrastructure and lay pipelines to transport water over large distances.

Millions are spent on the treatment and purification of water, he said.

“The cost of water is built into tariffs that should be adjusted each year so that costs are recovered fully. The tariff includes depreciation, operating costs, plus return on investments,” Nehemia said.

NamWater and Husab Mine recently announced they would achieve financial closure for the planned N$3-billion coastal desalination project by the end of the year.

The joint venture will see Husab Mine funding the construction of the project.

The plant is scheduled to be operational by mid-2026.

Nehemia said the plant would initially address coastal water needs, with future expansions extending supply to Windhoek and Gaborone.