Opuwo Projects delayed, nationwide budget mismanagement concerns raised

A parliamentary standing committee has raised concerns about the delay in the completion of the Opuwo Industrial Park, which has been under construction since 2012.

They are also concerned with delays in finishing the Opuwo Aerodrome project, initiated in 2012.

The parliamentary committee says construction of key facilities will only begin this year.

According to the committee, much of the project delays were blamed on the diversion of funds from one project or region to the next.

The standing committee raised concerns over the poor implementation, mismanagement and lack of coordination in capital projects budgeted for by the government in most of the country’s regions.

A report from the parliamentary standing committee on economics and public administration states that several capital projects budgeted for in the development budget for the medium term expenditure framework of 2021/22 to 2023/24 have either not been implemented, poorly implemented, or completed without being used.

Oversight visits carried out by the committee in July and August last year created awareness at regional level of the development budget approved by parliament as some regional leadership and officials were not aware of budgeted projects.

“The development budget description of projects as ‘nationwide’ or nationwide budgeting of projects hamper service delivery and results in some regions lagging behind with project execution and delivery,” the committee says.

The oversight visits were conducted in the Kunene, Omusati, Oshana, Ohangwena, Oshikoto, Zambezi, Kavango East, Kavango West and Otjozondjupa regions.

“In line with the bottom-up approach of the National Planning Commission, proposals were made to strengthen and reorganise the involvement of chief regional officers, regional heads and senior government officials from regions during the project identification stages,” the committee says.

Other ongoing projects include the Swakopmund-Henties Bay-Kamanjab road upgrade, expected to improve regional connectivity, and the construction of a government garage, which is still in early stages.

In the Omusati region only one of three budgeted projects under the Ministry of Industrialisation and Trade was completed, while two remain unimplemented. A local small and medium-sized enterprise producing school uniforms struggles with limited space and broken equipment.

Of four planned projects under the Ministry of Works and Transport, two were completed, one was suspended, and one was not implemented.

“Officials requested the committee for assistance in addressing the issues of water shortages in the region and proposed the installation of boreholes and permanent canals.”

Officials also raised concerns about the lack of regional involvement in project execution, the unfinished Outapi soccer stadium, water shortages, and the stalled Outapi Correctional Services project due to unsuitable land.

In the Oshana region, the committee found that the Ondangwa Northern Tannery, designed to process up to 1 200 hides daily, has remained unoccupied for a decade despite upgrades and investor interest.

Furthermore, vandalism has caused damages worth N$11 million while unused machinery gathers dust.

The MR120 road was completed in 2018 and is in excellent condition, but cost overruns remain a concern.

The Ondangwa Government Stores and Garage are in poor condition, with dilapidated facilities, damaged infrastructure and unorganised supplies.

A garment factory project planned for the Ohangwena region has only completed paperwork, while a small enterprise operates at Eenhana with limited space.

The Oupili-Onkumbula road is in the procurement phase, and the Endola constituency access road was completed in 2023.

Construction of the Omukukutu-Omboloka road was set to begin in August 2024 to improve access to schools, clinics and public services.

“Only eight access roads were constructed in the Ohangwena region despite a flood declared in 2015 requiring almost 40 roads to be constructed. The construction of roads in 6km phases is not advisable and requires some review. The Ministry of Works and Transport and Roads Authority were urged to consult with the regional leadership when identifying projects for the construction or upgrading of roads in the region,” the committee says.

In the Oshikoto region, the Onyati-Onyuulaye-Onkumbila road is in the consultancy phase, with construction set for July, while the Omuthiya-Elambo road faces delays due to demining, with work that was expected by December 2024.

The Omuthiya Industrial Park is fully operational, but a two-year water leak remains unfixed due to the Namibia Industrial Development Agency’s (Nida) unpaid maintenance fees.

At the Tsumeb Industrial Park, tenants lack water despite paying full rent, as Nida has outstanding municipal bills.

The committee found that renovated government flats still have sewer issues and that the region lacks a budget for green schemes despite having 33 000 hectares of land.

It also found that the Kalimbezi Rice Project has been inactive since 2022 due to unavailable spare parts.

The Endola Hostel for the San community lacks electricity while the Manyeha Crocodile Farm, started in 2013, remains abandoned, with structures being vandalised by baboons and monkeys.

“Officials expressed disappointment that the regional leadership called for budget hearings but none of their projects are budgeted, instead projects for the region are planned,” the committee says.

The committee was disappointed that most projects in the Kavango East region were not implemented, partly due to the non-functional regional development coordinating committee. The regional management was urged to ensure its functionality.

At Tutungeni, one government flat block was being renovated, with plans to fence and renovate two more blocks, garages and additional flats later. N$8 million was requested for the work.

The committee criticised the poor attendance of Kavango West leaders, saying it hinders regional development.

At Nkurenkuru Industrial Park, the garment factory has remained vacant since its 2022 inauguration, with unused machinery from 2023. Occupation was expected only in September 2024.

Meanwhile, economist Omu Kakujaha-Matundu says poor implementation of these projects stems from a number of factors, which include poorly conceived projects, poor planning, politically motivated projects and very small budgets.

“There is also implementation capacity in government offices, ministries, and agencies. Low implementation capacity exists. This is in terms of skills in project planning and implementation, stemming from poor college training, lack of experience in project planning, implementation, and management. That is, overall incompetencies and a general culture of no consequences,” Kakujaha-Matundu says.

He says responsible officials, including ministers, do not face any consequences for their failures to implement projects.

He adds that to successfully implement these projects, the government should do proper project planning, management and implementation and introduce a reward and punishment system.

“Reward only those who successfully implement projects and demote or fire those who are incompetent. That is, do away with the culture of entitlement and culture of no consequences,” Kakujaha-Matundu says.