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Namibia Ink Billion Dollar Loan Agreement With Germany

The government through the Ministry of Finance and Public Enterprises on Wednesday signed an agreement for a concessional loan of f NAD1,026,650,000 (approx. EUR 50 million) with the German Development Bank (KfW) for the financing of two wastewater treatment plants.

The loan is intended for the rehabilitation and extension of the Gammams and Otjomuise wastewater treatment plants and to improve Windhoek’s potable water supply by providing feedwater for the city’s direct potable reclamation plants, a joint statement revealed.

The project is financed on behalf of and with funds from the German Federal Ministry for Economic Cooperation and Development and implemented through the KfW Development Bank.

According to the joint statement, addressing the critical issue of securing drinking water for Windhoek, Namibia faces ongoing challenges due to its status as the driest country in Sub-Saharan Africa.

The joint statement said once the project is completed, the capacity of the two plants will be improved both in terms of operational capacity and also about effluent quality.

Windhoek’s population of more than 400,000 people is set to be the direct beneficiaries of these investments in the city’s water infrastructure.

Meanwhile, in addition to this, Windhoek’s municipal authority will also pilot a project to reduce water losses throughout the city’s water network.

This will be funded by German Development Cooperation, through KfW, in the form of a grant to the value of N$30 million (about 1.5 million euros).

As the driest country in Sub-Saharan Africa, with more than 80 percent of its land area covered by desert or semi-desert, Namibia regularly experiences extreme and prolonged periods of drought.

Source: The Economist