THE City of Windhoek this week announced that it has settled an outstanding bill of N$268 million owed to NamPower.
According to the Mayor of Windhoek, Job Amupanda, the shortage of cash flow in the past has resulted in the municipality owing NamPower N$268 million as of January 2020.
“At that point, we entered into a formal settlement arrangement with NamPower and we committed to repaying our arrears by the 1st of March 2021. The City has honoured its payment arrangements and has made the last payment, as agreed, at the start of this week. We can confidently confirm that all our arrears with NamPower have been settled and the current balance is zero. Going forward we are committed to paying our current account, which is on average N$130 million per month, on time,” Amupanda said.
Amupanda said that since November 2020, the CoW has had a payment arrangement with NamWater and that their payment period was extended from 30 days to 45 days.
“The CoW has not defaulted on this arrangement as the next payment is scheduled for the 15th of March 2021, it will be honoured accordingly. It is worth noting that our average monthly bill from NamWater has been around N$50 million per month for the last few months,” he said.
Amupanda added that the CoW has not been spared by the negative impact of COVID-19 and that its outstanding debts have drastically increased with N$150 million since the State of Emergency was first announced in March last year.
“At that point and time, we could not disconnect services for our residents as per instructions by our line ministry. In addition, the City has been providing free water to the residents of the informal settlements which amount to N$6 million per month from the beginning of the state of emergency, of which the City has only been refunded N$12 million from the central government through the line Ministry,” Amupanda added.