Namwater looks into diversifying income streams

The Namibia Water Corporation (NamWater) is looking into diversifying its stream of incomes and not only relying on selling water.

During an interview with the Ministry of Information and Communication Technology on Wednesday, NamWater chief executive Abraham Nehemiah said the company has a laboratory that can be utilised to generate revenue for the company.

“With the new strategy, we are looking at diversification, because we cannot rely on water sales as the only source of income.”

According to Nehemiah, the laboratory can be used to conduct tests for external entities that will pay for the service.

He said the majority of the costs incurred by the company comes from building infrastructure such as dams, water pipes, reservoirs, purification and maintenance.

“Millions of dollars are spent on the treatment and purification of water. Services of supplying water is a very costly exercise,” said Nehemia.

He added that the company is currently facing a major challenge of ageing infrastructure which needs to be replaced.

This has been made worse by the company having to construct infrastructure and lay pipelines over large distances.

“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,” said Nehemiah.

He said NamWater is currently busy with major projects to provide water in areas that do not have access.

One such project is the Rundu Water Treatment Plant Extension that will cater to the two Kavango regions.

“Three weeks ago, we did the groundbreaking ceremony for the Rundu treatment plant. It is expected to supply water at Rundu and the surrounding areas,” said Nehemiah

He said the company is talking to the government and external funders to fast-track the project.

Additionally, Nehemiah said the company is in the last stages of concluding a N$3 billion coastal desalination plant.

The project is being done in collaboration with Husab Mine.

“The partnership is a joint venture, and the financial backing from Husab is crucial as it helps us avoid the need to mobilise N$3 billion. We are also mobilising our resources to contribute to our share in the project,” said Nehemiah.

He said the plant should be operational in two years.