No free water, says Angula

A TOP Government official has dismissed claims that water is unaffordable for most Namibians and ruled out the possibility of the precious resource being supplied free.

Inaugurating the new board of water utility, NamWater, last week, Minister of Agriculture, Water and Rural Development, Helmut Angula, said claims that Government was making water unaffordable had not been considered within the broader context of social realities. “Water does not come cheap.It comes with a lot of investment,” said the Minister.”There is no way possible to provide free water in this country otherwise the whole system will collapse.”Angula, who compared the affordability of water to the purchase of beer, said: “How much is the price of a 340 millilitre bottle of beer? How many Namibians buy beer? We know how much that costs.Some buy about seven a week.It is incredible how people make [others] believe that water is not affordable in Namibia.”Bulk water supply for pensioners, he said, was being sold by NamWater at N$3,70 per cubic metre (1 000 litres) a month – about 30 cents less than the standard rate of just over N$4,00.Angula also dismissed as “incredible propaganda” allegations that the country’s water provision system had been privatised through the establishment of NamWater.NamWater, he said, would remain a wholly-owned State entity.”State remains state.It doesn’t mean it [water provision] is privatised because it [NamWater] charges its citizens,” said Angula.NamWater itself maintains that it operates on a cost-recovery basis and that all profits are ploughed back into building and maintaining water infrastructure.Angula told the board that a new Water Bill was in the pipeline, which would give rise to new institutions to regulate the industry – among these an Independent Pricing Regulator to deal with issues of affordability.He said it was the board’s responsibility to ensure reliable and affordable services to the company’s clients and acceptable tariff policies and structures.The NamWater board has been trimmed from nine to five members in accordance with Government policy to increase the effectiveness of parastatal boards.Engelhard Haihambo from the Engineering Council of Namibia was elected Chairman of the board.Other members who will serve for the next three years are:Moses Shakela, a NamWater employee; Abraham Nehemia to represent the Ministry of Agriculture, Water and Rural Development; Nangula Hamunyela from the Namibia Chamber of Commerce and Industry (NCCI); and Jacobus du Toit from the Institute of Chartered Accountants of Namibia.They face the immediate challenge of introducing national increases in water tariffs for next year in line with a Cabinet decision.Angula said this was so that the State could budget for its water consumption ahead of the tabling of the annual Budget.According to the Minister, many Ministries and other State institutions defaulted on water payments because increases were introduced after their budgets had already been approved.The Minister said that water providers were faced with the challenge of overcoming a cultural belief that water should be free of charge.Coupled with this, he said, were the broader social realities that led to the non-payment of bills.He said the price of water would not be deemed exorbitant for pensioners if they were only responsible for paying for their own water consumption.Angula said critics should distinguish between the amount of water needed for personal use and that needed for economic activities.According to NamWater, provision is made for a daily supply of 25 litres of water per person – more than the United Nations prescribed amount of 15 litres per day.Angula said he could understand farmers’ complaints that they were unable to pay for water for their cattle but, on the other hand, they were reluctant to reduce their livestock herds.According to NamWater, at present 80 per cent of Namibians have access to potable water, while before it was established this figure was only 60 per cent, up from 45 per cent at Independence.”Water does not come cheap.It comes with a lot of investment,” said the Minister.”There is no way possible to provide free water in this country otherwise the whole system will collapse.”Angula, who compared the affordability of water to the purchase of beer, said: “How much is the price of a 340 millilitre bottle of beer? How many Namibians buy beer? We know how much that costs.Some buy about seven a week.It is incredible how people make [others] believe that water is not affordable in Namibia.”Bulk water supply for pensioners, he said, was being sold by NamWater at N$3,70 per cubic metre (1 000 litres) a month – about 30 cents less than the standard rate of just over N$4,00.Angula also dismissed as “incredible propaganda” allegations that the country’s water provision system had been privatised through the establishment of NamWater.NamWater, he said, would remain a wholly-owned State entity.”State remains state.It doesn’t mean it [water provision] is privatised because it [NamWater] charges its citizens,” said Angula.NamWater itself maintains that it operates on a cost-recovery basis and that all profits are ploughed back into building and maintaining water infrastructure.Angula told the board that a new Water Bill was in the pipeline, which would give rise to new institutions to regulate the industry – among these an Independent Pricing Regulator to deal with issues of affordability.He said it was the board’s responsibility to ensure reliable and affordable services to the company’s clients and acceptable tariff policies and structures.The NamWater board has been trimmed from nine to five members in accordance with Government policy to increase the effectiveness of parastatal boards.Engelhard Haihambo from the Engineering Council of Namibia was elected Chairman of the board.Other members who will serve for the next three years are:Moses Shakela, a NamWater employee; Abraham Nehemia to represent the Ministry of Agriculture, Water and Rural Development; Nangula Hamunyela from the Namibia Chamber of Commerce and Industry (NCCI); and Jacobus du Toit from the Institute of Chartered Accountants of Namibia.They face the immediate challenge of introducing national increases in water tariffs for next year in line with a Cabinet decision.Angula said this was so that the State could budget for its water consumption ahead of the tabling of the annual Budget.According to the Minister, many Ministries and other State institutions defaulted on water payments because increases were introduced after their budgets had already been approved.The Minister said that water providers were faced with the challenge of overcoming a cultural belief that water should be free of charge.Coupled with this, he said, were the broader social realities that led to the non-payment of bills.He said the price of water would not be deemed exorbitant for pensioners if they were only responsible for paying for their own water consumption.Angula said critics should distinguish between the amount of water needed for personal use and that needed for economic activities.According to NamWater, provision is made for a daily supply of 25 litres of water per person – more than the United Nations prescribed amount of 15 litres per day.Angula said he could understand farmers’ complaints that they were unable to pay for water for their cattle but, on the other hand, they were reluctant to reduce their livestock herds.According to NamWater, at present 80 per cent of Namibians have access to potable water, while before it was established this figure was only 60 per cent, up from 45 per cent at Independence.