Business Reporter
THE Federal Republic of Germany has extended a loan of N$1.8 billion to the Namibian government for various development projects which range ensuring water supply to climate-related infrastructure projects.
Iipumbu Shiimi, Minister of Finance, and Herbert Beck, Ambassador of the Federal Republic of Germany, signed the Agreement on Financial Cooperation for Loans following the 2019 Governmental Negotiations on Development Cooperation between Germany and Namibia.
The agreement covers three programmes to the value of EUR 100 million (approx. N$ 1.8 billion) for which financing will be provided by interest-reduced loans in local currency, thereby securing favourable credit conditions for the Government of Namibia.
Approximately N$ 900 million will be provided for the upgrading of the water infrastructure in Windhoek by modernizing and extending the Gammams wastewater treatment plant.
The investment will allow to more than double the capacity of the plant from 25,000 m³ to 55,000 m³ of water treated per day. This will safeguard the provision of the needed quantity and quality of water as feedstock for water reclamation as one of the backbones of water supply to the city.
In addition, this project will complement the ongoing support provided by the German development cooperation to the City of Windhoek in implementing its long term strategies to ensure the supply and most efficient use of water for its citizens.
This includes already a EUR40 million (approx. N$720 million) interest reduced local currency loan provided for the construction of an additional Direct Potable Reclamation Plant in Windhoek as well as a grant to identify measures to reduce water losses in the city’s water supply and sewage system.
In addition, a total of N$540 million will be provided to extend an existing credit line to the Development Bank of Namibia (DBN) for climate-related infrastructure projects in Namibia. The facility aims to improve access to long-term finance for both private and public investors at incentivized conditions for climate-related infrastructure projects like solar photovoltaic and wind energy generation as well as rural and urban water infrastructure and public transport projects.
In conclusion approximately N$360 million will be provided for a credit line to the Agribank of Namibia to sustainably and efficiently expand the range of financial services available to agricultural households and micro, small and medium-sized enterprises.
