Waves of doubt over Swakop marina

AN attempt by the Swakopmund Waterfront Company to amend its original agreement with the Swakopmund Town Council has again raised fears over the developer’s commitment to build the marina component of the multi-million-dollar project.

One of three amendments proposed by the developer was that the completion of the harbour should not be a prerequisite for the alienation of any erf or unit or portion of land as specified in the current agreement. Residents and two councillors have previously expressed fears that the harbour would never be built.Councillor Walter Aston said at the signing of the original agreement that he wanted it to be recorded that the main reason for selling the land “at such a low price” was that the developer had to ensure that a harbour would be built.The Municipality sold the 10,9 ha tract of land for N$2 198 140.Two prominent figures in the development assured The Namibian last year that people should not fear that the marina would be left out.The development of the marina basin is projected to cost N$140 million, the commercial development N$180 million.When the agreement was signed, Basil Smit of Desert Child, who owns 50 per cent of the Waterfront Company, said it included a penalty clause of N$25 million if the marina was not built.”There is no way that anyone in his right mind would try to get out of it.The contract prevents us from running away from this responsibility,” said Smit.The other two amendments requested by the developer would allow them to develop the land piecemeal and, in the event of a breach of contract, Bank Windhoek would enjoy first-bondholder rights.Piecemeal development would allow for the alienation of erven or sectional title units whenever a particular phase has been completed.The current agreement provides for such alienation only until a completion certificate has been issued by the Municipality for each development and provided the developer’s marine engineer issues a completion certificate for the harbour.Council rejected all three amendments at its last monthly meeting and asked the developer to provide a progress report on the project’s status.Councillor Tom Wylie said at the meeting that the public was under the impression Council responsible for delays to the project which was not the case.Residents and two councillors have previously expressed fears that the harbour would never be built.Councillor Walter Aston said at the signing of the original agreement that he wanted it to be recorded that the main reason for selling the land “at such a low price” was that the developer had to ensure that a harbour would be built.The Municipality sold the 10,9 ha tract of land for N$2 198 140.Two prominent figures in the development assured The Namibian last year that people should not fear that the marina would be left out.The development of the marina basin is projected to cost N$140 million, the commercial development N$180 million.When the agreement was signed, Basil Smit of Desert Child, who owns 50 per cent of the Waterfront Company, said it included a penalty clause of N$25 million if the marina was not built.”There is no way that anyone in his right mind would try to get out of it.The contract prevents us from running away from this responsibility,” said Smit.The other two amendments requested by the developer would allow them to develop the land piecemeal and, in the event of a breach of contract, Bank Windhoek would enjoy first-bondholder rights.Piecemeal development would allow for the alienation of erven or sectional title units whenever a particular phase has been completed.The current agreement provides for such alienation only until a completion certificate has been issued by the Municipality for each development and provided the developer’s marine engineer issues a completion certificate for the harbour.Council rejected all three amendments at its last monthly meeting and asked the developer to provide a progress report on the project’s status.Councillor Tom Wylie said at the meeting that the public was under the impression Council responsible for delays to the project which was not the case.