The rdj briefing 2017 11 30 by RDJ Briefing

Namibia

News & Analysis

November 2017

Country Briefing

Country Brief – NAMIBIA

November 2017

Quick Facts Population size Employment Literacy

2.30 million

GDP Growth 2016 Repo Rate Interest rate (Prime) Inflation rate

0.20% 6.75% 10.50% 5.20%

66.00% 89.00%

Geographic size 824,292 km²

Budget (Current) N$62.54 Billion

Free vector map of Namibia outline - by One Stop Map

Industries Telecom (sophistication) Mobile - cell phones

Tourism, Mining, Fishing

Water Availability / capita1

8, 800, 000Litres/capita

Electricity Gen. (Local) Electricity Demand (all)

484.000 MW

LTE 2.575 million subscribers

2005 Figures https://www.greenfacts.org/en/water-resources/figtableboxes/aquastat123.htm

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629.000 MW

Country Brief – NAMIBIA

November 2017

Table of Contents Economic growth at a glance ................................................................................................................ 6 •

Namibian Mid-Term Budget Review 2017/18 – 2019/20......................................................... 6

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Fitch Downgrades Namibia to 'BB+'; Outlook Stable................................................................ 7

A Glimpse at the Future ........................................................................................................................ 8 •

The Spherical Sun Power Generator ......................................................................................... 8

Oil & Gas ............................................................................................................................................. 10 •

Oil giants unlikely to share coal's fate, for now ...................................................................... 10

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Private fuel storage planned for Usakos ................................................................................. 10

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Africa unites to attach investment at Africa Oil Week in Cape Town .................................... 10

Uranium .............................................................................................................................................. 11 •

SA cannot afford major nuclear programme .......................................................................... 11

Electricity ............................................................................................................................................ 11 •

Electricity and Water cuts for customers with outstanding bills ............................................ 11

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South African government to continue supporting cash-strapped power utility Eskom ....... 11

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Erongo Red unveils N$570 million sub-station ....................................................................... 12

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SADC electricity surplus mixture of slower growth and increased generation ..................... 12

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Investors baulk at putting up local factories due to electricity risks ..................................... 13

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Invest in energy, Schlettwein urges ........................................................................................ 13

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Namibia Power scenario ......................................................................................................... 13

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NORED appoints contractors to deal with backlog in new connections ................................ 14

Renewable Energy .............................................................................................................................. 16 •

City of Windhoek plans solar park .......................................................................................... 17

Elephants damage water tank ................................................................................................ 18

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Omuthiya to pump toxic water from wells ............................................................................. 18

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Noordoewer grape workers struggle for potable water ........................................................ 19

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Water sustainability research needed .................................................................................... 19

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City to build N$1,1b water reclamation plant ........................................................................ 19

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Namwater reservoir 60% complete ........................................................................................ 19

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Temporary solution for Onamatanga water woes ................................................................. 20

Telecommunications........................................................................................................................... 20 •

8 new 4G sites in Windhoek ................................................................................................... 20 Energy & Sustainability News & Analysis

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Water .................................................................................................................................................. 18

Country Brief – NAMIBIA

November 2017

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Namibia improves its ICT index rating .................................................................................... 20

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Windhoek to commercialise optic fibre ................................................................................. 20

The Environment ................................................................................................................................ 21 •

Eco Lodge Awarded ................................................................................................................ 21

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Smelter sustainability ............................................................................................................. 21

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Hydrogen could deliver one fifth of world carbon cuts ......................................................... 21

Road and Transport ............................................................................................................................ 25 •

Inauguration of multimillion dollar road ................................................................................ 25

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N$200 million earmarked for access roads in Ohangwena and Omusati............................... 25

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Namibia, China sign grant aid, donation agreements ............................................................ 25

Financing ............................................................................................................................................. 26 •

Arandis 4th Investment Conference and Uranium Festival .................................................... 27

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Namibia, China sign grant aid, donation agreements ............................................................ 27

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EIF signs N$4,3m agreement with GCF ................................................................................... 27

Tenders ............................................................................................................................................... 28 Careers and Jobs ................................................................................................................................. 31

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Disclaimer ........................................................................................................................................... 35

Energy & Sustainability News & Analysis

Country Brief – NAMIBIA

November 2017

This report is a FREE Publication and was prepared by RDJ Consulting Services CC based in Windhoek, Namibia. The content is collated from publicly available information and so its accuracy cannot be guaranteed. Advertising aligned with our objectives of Sustainable Resource usage is welcome. Contact Details; RDJ Consulting Services CC PO Box 23738 Windhoek, NAMIBIA

Editor: David Jarrett Authors: Chilombo Olga Priscila Faith Ng’ona & Mubita Saasa

Telephone: +264 61 400 171 Email – Office@rdjconsulting.co.za RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy. Visit our website www.rdjconsulting.co.za for more information.

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**Please see last page for full details

Energy & Sustainability News & Analysis

Country Brief – NAMIBIA

November 2017

Economic growth at a glance Namibian Mid-Term Budget Review 2017/18 – 2019/202 Analysis of the Namibian Mid-Year Budget Review that was tabled in the National Assembly on 2 November 2017 REVENUE

In the mid-term budget speech, the Minister announced an increase in revenue expectations for the current, 2017/18 financial year of approximately N$300 million, however noted the expectation for reduced revenues, relative to previous forecasts, in the 2018/19 (N$575 million reduction) and 2019/20 (N$1015 million reduction) financial years. EXPENDITURE “This spending trajectory provides for about N$5.4 billion additional spending to the current MTEF ceilings as means

https://www2.deloitte.com/content/dam/Deloitte/na/Documents/tax/na-Namibia-Mid-Term-BudgetReview-2-November-2017.pdf

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of implementation of the proposed intervention measures.” Minister of Finance, Mid-Year Budget Review, November 2017

Country Brief – NAMIBIA

November 2017

TAX The tax arear recovery programme will continue until 31 March 2018 and is expected to continue to enhance the recovery of outstanding taxes. “As the economic recovery takes shape, it is not my intention to increase general tax rates. But we intend to bring all potential taxpayers in the tax net and achieve full compliance. This is to allow for economic agents to produce and invest, while creating incentive to work and promoting equity and fairness of the tax system.” Minister of Finance, Mid-Year Budget Review, November 2017 DEFICIT, DEBT AND FUNDING The deficit forecast for 2018/19 has been revised lower, from -2.4% to 4.2%. Similarly, the deficit for 2019/20 has been revised lower, from -1% to -2.9%. Due to the persistent budget deficits over the next three years, debt levels are to continue to rise. The major fiscal slippage seen in the current budget, however, means that the debt levels of the country will rise faster than previously expected. Thus, over the next three years, debt levels are expected to expand by N$19.8 billion, from N$67.8 billion, to N$87.6 billion. This is an upward revision of 16.5%, or N$12.4 billion over the March budget expectations.

Fitch Downgrades Namibia to 'BB+'; Outlook Stable3 Fitch Ratings has downgraded Namibia's long-term foreign-currency Issuer Default Rating (IDR) to BB+ from BBB with a stable outlook4. In a statement posted on its official website, Fitch said the downgrade reflects weaker-than-forecast fiscal outcomes and it projected that public debt to GDP will continue to rise over the medium term. This it said will leave debt in financial year 2019 to end of March 2020 at nearly double the ratio in 2014/15 financial year. The agency further noted that the downgrade reflects a weaker than expected economic recovery and that in its view, the medium-term growth has shifted to a lower gear.

3 4

https://www.fitchratings.com/site/dodd-frank-disclosure/1032574 http://apanews.net/en/news/fitch-downgrades-namibia-to-junk-status

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Fitch explained that key factors that led to the downgrade include the fiscal consolidation that was temporarily interrupted in 2017. It said the general government deficit to narrow to 6 percent of GDP from 6.9 percent in 2016, against a revised government target of 5.3 percent. The agency also observed that the Namibian government has revised its fiscal consolidation strategy, and no longer targets a reduction or stabilisation of debt-to-GDP between 2017 and 2020 fiscal periods. In the Medium-Term Expenditure Framework released earlier November, projects general government debt to grow to 44.2 percent in 2019 fiscal year, while it was forecast to decline to 37.7 percent.

Country Brief – NAMIBIA

November 2017

A Glimpse at the Future The Spherical Sun Power Generator5

German Architect Andre Broessel believes he has a solution that can “squeeze more juice out of the sun”, even during the night hours and in low-light regions. His company Rawlemon has created a spherical sun power generator prototype called the beta.ray. His technology will combine spherical geometry principles with a dual axis tracking system, allowing twice the yield of a conventional solar panel in a much smaller surface area. The futuristic design is fully rotational and is suitable for inclined surfaces, walls of buildings, and anywhere with access to the sky. It can even be used as an electric car charging station. Scroll down for photos and videos…

http://www.alternative-energy-news.info/spherical-sun-power-generator/

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“The beta.ray comes with a hybrid collector to convert daily electricity and thermal energy at the same time. While reducing the silicon cell area to 25% with the equivalent power output by using our ultra-transmission Ball Lens point focusing concentrator, it operates at efficiency levels of nearly 57%

Country Brief – NAMIBIA

November 2017

in hybrid mode. At night-time the Ball Lens can transform into a high-power lamp to illuminate your location, simply by using a few LED’s. The station is designed for off grid conditions as well as to supplement buildings’ consumption of electricity and thermal circuits like hot water.” ✓ How it works:

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✓ The modular collector system charges and stores energy during daylight hours and can even collect energy from the moon during night hours: ✓ Suitability for conventional CPV and thermal power plants: Suitability for solar hybrid power plants with Rawlemon technologies: ✓ Electric Car Charging Station

Energy & Sustainability News & Analysis

Country Brief – NAMIBIA

November 2017

Oil & Gas Liquid Fuels The Ministry of Mines and Energy announced that the prices of petrol and diesel pumps increased on 1st November 2017.6 Petrol (95 Octane) - N$ 11.20 /L Diesel (500 PPM) - N$ 11.23 / L Diesel (50 PPM) - N$ 11.28 / L Namibia has no refinery capacity to-date Namibia currently ranks 14th in the Fraser Institute Global Petroleum Survey, 2016 of small reserve holders, placing Namibia 5 places ahead of South Africa. www.fraserinstitute.org

Oil giants unlikely to share coal's fate, for now7 The European oil and gas index fell on 17 November 2107 to its lowest since late September, extending declines following the Norwegian fund's announcement. For some, it was seen as an opening shot in the decline of the 150-year-old sector in the battle to slow global warming and reduce carbon emissions, reminiscent of the demise of coal. Petroleum companies see natural gas as a cleaner alternative to coal for power-generation in the effort to wean the world off fossil fuels by the end of the century. Also, demand for oil in transportation and plastics is not expected to decline significantly until 2050, according to many forecasts.

Private fuel storage planned for Usakos8 The Harambee Prosperity Plan (HPP)'s forth pillar – infrastructure development – has as its main concept to put Namibia in a central position and establish the country as a logistic hub in SADC. Namibia and the land-locked neighbouring countries, are highly dependent on fuel imports, and are currently suffering due to lack of adequate logistic platforms, and MDL had seen a business opportunity for an oil storage facility.

Africa unites to attach investment at Africa Oil Week in Cape Town 9 The African oil industry met from the 30th October to 3rd November 2017 to discuss the potential, but also the challenges, that the industry faces as the continent moves towards the commercialisation of its huge gas and oil reserves10. Six of Africa’s oil ministers from Cote d’Ivoire, Namibia, Nigeria, Ghana, Mali, South Africa attended, including US Secretary for Energy Rick Perry.

http://www.mme.gov.na/files/publications/ https://www.namibian.com.na/61762/read/Oil-giants-unlikely-to-share-coals-fate-for-now 8 https://www.namibian.com.na/62013/read/Private-fuel-storage-planned-for-Usakos 9 https://economist.com.na/30122/mining-energy/africa-unites-to-attach-investment-at-africa-oil-week-incape-town/ 10 www.Africa-OilWeek.com

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Country Brief – NAMIBIA

November 2017

The African continent accounts for 16% of active offshore fields and 70% of offshore fields, these are either under development or represent potential developments. African countries need to address the regulatory and fiscal conditions in order to attract investment and reignite the development of identified deep-water assets and to exploit the substantial latent exploration potential of the continent.

Uranium SA cannot afford major nuclear programme11 Minister Gigaba told a gathering of business people and journalists in Cape Town that a major nuclear programme would be out of the question for at least the next five years. The South African government has approved its Integrated Resource Plan of 2010-30, which provides for coal, gas, renewables and 9 600-megawatt nuclear as part of the energy landscape by 2030. But environmental groups, which question the safety of nuclear energy, have launched a series of campaigns against the plan.

Electricity Electricity and Water cuts for customers with outstanding bills12 The City of Windhoek spokesperson Lydia Amutenya warned on 24 November that all residential accounts in arrears by 30 days or older will be disconnected as from 15 December without further warning. Amutenya advised that residents could also approach the City's debt management division “to make arrangements on how you are going to settle your account however, business accounts are not allowed to be in arrears”. Reconnection could take up to 48 hours, she warned. For services to be reconnected, a minimum of one third of the account must be paid for the first disconnection. If services are disconnected for a second time, 50% of the account is due before reconnection will be authorised. “If you had an arrangement with the debt management division and it was not honoured, a minimum of 50% of the account must be paid,” Amutenya advised.

South African government to continue supporting cash-strapped power utility Eskom13

https://www.namibian.com.na/60956/read/SA-cannot-afford-major-nuclear-programme https://www.namibiansun.com/news/pay-up-or-face-water-and-lights-cuts2017-11-28/ 13 https://www.namibian.com.na/61764/read/South-African-government-to-continue-supporting-cashstrapped-power-utility-Eskom 12

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On 17 November 2017, ratings agency Fitch put Eskom's long-term local currency issuer default ratings, or IDR, and its unguaranteed local currency senior unsecured ratings of “BB+” on Rating Watch Negative (RWN). Fitch's move fueled the belief among some that the utility has become the biggest risk to South Africa's economy. The presidency, however, objected to this view.

Country Brief – NAMIBIA

November 2017

Erongo Red unveils N$570 million sub-station14 To address the continuous population growth in Walvis Bay and keep up with the high electricity demand that will increase significantly once the Port of Walvis Bay, as well as the SADC Gateway Port reach full capacity, the regional electricity distributor, Erongo Red, commissioned a state-of-the-art substation at Walvis Bay on November 17. The project was a joint venture between Erongo Red and NamPower. It cost about N$570 million, of which Erongo Red paid N$270 million through a loan obtained from the Development Bank of Namibia (DBN). Currently, Walvis Bay’s electricity consumption is about 60-megawatt and has put added strain on the network. However, with the upgrading the town’s growing demand will be met by the station’s 120-megawatt transfer capacity at 11 kilovolts.

SADC electricity surplus mixture of slower growth and increased generation 15 For the first time in the last 10 years, the Southern African Development Community (SADC) is experiencing surplus electricity-generation capacity as a result of regional cooperation in energy planning. The Acting Coordination Centre Manager of the Southern African Power Pool (SAPP), Alison Chikova told the SADC Energy Thematic Group (ETG) meeting held in Gaborone, Botswana in October that excess generation capacity was about 2,616 Megawatts (MW). According to the African Development Bank (AfDB), southern Africa is a potential “gold mine” for renewable energy due to the abundant solar and wind resources that are now hugely sought after by international investors in their quest for clean energy. The SADC region is also generously endowed with watercourses such as the Congo and Zambezi, with the Inga Dam situated on the Congo River having the potential to produce about 40,000MW of electricity, according to SAPP. Currently, coal is the largest contributor to electricity generation, providing 62 percent of the energy mix, followed by hydro, which contributes 21 percent. Another critical measure to develop a viable and vibrant energy sector in SADC is the need to build more transmission interconnections across member state borders. More transmission lines would enable member states to benefit from new generation capacity installed in other countries in the region. The power infrastructure in mainland SADC is not fully integrated yet as Angola, Malawi and the United Republic of Tanzania are not connected to the regional electricity pool.

https://www.newera.com.na/2017/11/20/erongo-red-unveils-n570-million-sub-station/ https://economist.com.na/30503/mining-energy/sadc-electricity-surplus-mixture-of-slower-growth-andincreased-generation/ 15

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Some of the planned transmission lines are the Zimbabwe-Zambia-Botswana-Namibia interconnector project, the Zambia-Namibia power line and the Zambia-Tanzania-Kenya interconnector project. The Zambia-Tanzania-Kenya interconnector project is expected to connect the SAPP grid to the one operated by the Eastern Africa Power Pool in addition to linking the Tanzanian power network to other SAPP member countries.

Country Brief – NAMIBIA

November 2017

Investors baulk at putting up local factories due to electricity risks 16 Namibia’s over-reliance on imported electricity, this week claimed its first investment victim when a consortium of investors who attended the Investment Conference in November 2016, said they view the country in a very favourable light but after analysis of available energy data, the security of future electricity supply stands out as a major risk. According to the consortium, energy is the biggest portion of the operating cost of their industrial plant and they were therefore looking in detail at the stability of electricity supply as this can pose some major risks to their operations. Despite the country’s power utility, NamPower’s mandate to reduce the importation of power from neighbouring countries, as well as Harambee Goal # 11, “Increase in local electricity generating capacity from 400MW to 600MW”, the analysis conducted by the consortium on the data on NamPower’s SCADA dashboard for June to September 2017, revealed that Namibia has imported approximately 97% of the average daily consumption. The analysis revealed that 97% of NamPower’s average hourly power load from outside Namibia in September 2017 (465MW out of 480MW) indicated that 77% came from South Africa, 2% from Zimbabwe, and 18% from Zambia.

Invest in energy, Schlettwein urges17 Minister of finance Calle Schlettwein has urged private-sector investors to look at collaborative projects in the power sector. He made the remarks at the third Annual Public-Private Partnership Conference, hosted by the ministry of finance, PwC Namibia and Standard Bank of Namibia in November 9. According to Schlettwein, Namibia's location within Southern Africa and its abundant sunshine throughout the year boded well for its ability to ¬generate solar electricity for the region. “Namibia has an ambitious plan for private investments in the power generation sector and given its strategic location, we have the potential to light up Southern Africa. We also have suitable locations and available space for wind energy generation. These renewable energy resources are an excellent solution for off-grid connectivity and in order to accelerate the electricity service to unserved areas” said Schlettwein.

Namibia Power scenario18

https://economist.com.na/29927/headlines/investors-baulk-at-putting-up-local-factories-due-toelectricity-risks/ 17 https://www.namibiansun.com/news/invest-in-energy-schlettwein-urges2017-11-10/ 18 https://www.namibiansun.com/news/power-imports-cost-n9b2017-11-02/

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NamPower has paid over N$9 billion for electricity imported from elsewhere over the last five years. NamPower says it plans to invest about N$14 billion in its generation and transmission assets over the next five years to reduce reliance on outside sources. This amount does not include the Kudu and Baynes mega-projects in which shareholding is still open, the power utility stated. The exclusion of the Kudu and Baynes projects is presumably because of their “complex” nature, requiring government guarantees.

Country Brief – NAMIBIA

November 2017

NORED appoints contractors to deal with backlog in new connections19 The Northern Regional Electricity Distributor (NORED) chief executive officer, Fillemon Nakashole reported that they have appointed 23 contractors for the installation of new connections. This is because there have been complaints about the long waiting period from customers, hence the decision to appoint the contractors throughout its area of operation to accelerate the process. Another challenge is clients who do not pay their bills on time. “These are customers who consume electricity but who are just not paying and it makes our operations very difficult,” Nakashole said. He added that their continued failure to pay could lead to the distributor’s 76 705 prepaid clients’ electricity also being disconnected if NORED does not pay its account with NamPower.

https://www.namibiansun.com/news/nored-appoints-contractors-to-deal-with-backlog-in-newconnections2017-11-06/

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Other big challenges the electricity distributor faces are vandalism and theft of its infrastructure. Nakashole said in the Omusati Region someone chopped down an electricity pole, while in the same region electric cables are tampered with, which could lead to electrocution.

Country Brief – NAMIBIA

November 2017

Approved Electricity Tariffs (2017) Area Provider

Tariff Schedule (Web Link)

CENORED

http://www.ecb.org.na/images/docs/Tariffs/2018/CENORED_2017.pdf

City of Windhoek Erongo RED

http://www.ecb.org.na/images/docs/Tariffs/2018/COW_2017.pdf http://www.ecb.org.na/images/docs/Tariffs/2018/Erongo_RED_2017.pdf

Keetmanshoop http://www.ecb.org.na/images/docs/Tariffs/2018/Keetmanshoop_2017.pdf Mariental

http://www.ecb.org.na/images/docs/Tariffs/2018/Mariental_2017.pdf

Nampower

http://www.ecb.org.na/images/docs/Tariffs/2018/NamPower_2017.pdf

NamPower Transmission NamPower TOU

http://www.ecb.org.na/images/docs/Tariffs/2018/NamPower_Transmission_2017.pdf

NORED

http://www.ecb.org.na/images/docs/Tariffs/2018/Nored_2017.pdf

OPE

http://www.ecb.org.na/images/docs/Tariffs/2018/OPE_2017.pdf

Regenstein

http://www.ecb.org.na/images/docs/Tariffs/2018/Regenstein_2017.pdf

SunGate

http://www.ecb.org.na/images/docs/Tariffs/2018/SunGate_2017.pdf

http://www.ecb.org.na/images/docs/Tariffs/2018/NP_TOU_TARIFFS_2017.pdf

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The original can be found at http://www.ecb.org.na//images/docs/Tariffs/documents/Net_Metering_Avoided_Cost_1617.pdf

Net Metering

Country Brief – NAMIBIA

November 2017

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Renewable Energy

Energy & Sustainability News & Analysis

Country Brief – NAMIBIA

November 2017

City of Windhoek plans solar park20 The City of Windhoek has sought approval for the construction of five photovoltaic power plants, each with a capacity of 5MW. The proposal was submitted to the city council for discussion at its monthly meeting. The plants will be constructed on virgin land just south of the residential suburb of Cimbebasia, the municipality said. If the council approves, the plants would be set up in conjunction with Independent Power Producers (IPPs) in exchange for a share of the ownership. The site is a 310-hectare stretch of protected land, of which 52 hectares would be reserved for the solar plants. The land sits on top of an important aquifer and is close to a 66-kilovolt power line that feeds into Windhoek's power grid. The project stems from the City of Windhoek's strategic transformational plan for 2017 to 2022 and was submitted by its electricity division. Motivating the need for the construction of the power plants, the City said it stood to gain additional revenue from leasing the land, while protecting it. “The value of the land has already been sacrificed, thus the council can generate additional revenues from the lease agreements with various IPPs. Leasing this portion of land will protect the aquifer area from speculative developers,” the proposal reads. While IPPs will be required to conduct their own environmental impact assessments, an existing EIA found no potential for pollution of the land if used for photovoltaic plants. The council's management committee also suggested that a renewable energy policy be drafted and a renewable energy steering committee be formed in the interim.

https://www.namibiansun.com/news/windhoek-plans-solar-park2017-11-02/

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No timeframe has been set for the project.

Country Brief – NAMIBIA

November 2017

Water

Water demand in Namibia is met via surface and artesian sources.

Water availability21 The overall Dam capacities had been recorded at 414.041 million cubic metres (Mm3) during May 2017. However, such levels have been declining since then, down to 318.301 Mm3 in November 201722.

Elephants damage water tank23 Kamupupu villagers 15 km south of Tondoro village are struggling to get water after elephants destroyed water reservoirs in the night of November 11. The elephants damaged the water tanks and pipes, destroyed the tap where the community fetches/sources water from and then on Monday pushed over the 10,000-litre tank. The community now has to walk 15 km to the next village to fetch water and the river is also 15 km away at Tondoro village. As a result, they cannot pump water for themselves, their livestock as well as for the schools. The community wants the environment ministry to have a contingency fund in place to use for bringing water to the community from elsewhere or to fix the damage and restore water supply with speed.

Omuthiya to pump toxic water from wells24 The Omuthiya Town Council has begun pumping toxic water from five wells at Omainda village as the water was polluted with mosquito chemicals and unfit for human consumption. The CEO of Omuthiya, Samuel Mbango, said officials might have exceeded the required dosage to treat the water hence it became unfit due to a high chemical content that accumulated in the wells.

https://www.namwater.com.na/index.php?option=com_jumi&view=application&fileid=6&Itemid=109 Actual data as reported by NamWater (20 November, 2017 – www.namwater.com.na) 23 https://www.newera.com.na/2017/11/17/elephants-damage-water-tank/ 24 https://www.newera.com.na/2017/10/25/omuthiya-to-pump-toxic-water-from-wells/ 22

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“Officials are already at the site and are pumping out the water so that it can be reusable again. We treat water sources within town just before the breeding season of mosquitoes in order to avoid an outbreak. We have been doing this for the past four years after the deadly mosquito outbreak at the time which left some animals dead and people getting malaria,” explained Mbango. He assured that the water situation would be normalised.

Country Brief – NAMIBIA

November 2017

Noordoewer grape workers struggle for potable water25 Although the more than 300 residents of Paaie Kamp, which translates to 'Road Camp', live on the banks of the Orange River, they still find it hard to access water. Most residents, who are seasonal grape workers, live in makeshift structures built out of reeds. Commercial farmers draw water from the river to irrigate their vineyards, which are located along the banks of the river. The settlement office, which resorts under the //Karas Regional Council, opens a tap in the informal settlement twice a day – in the morning and in the evening – for residents to get water. The settlement office charges N$40 cents to fill a 25-litre container.

Water sustainability research needed26 The deputy permanent secretary of Water Affairs and Forestry in the Ministry of Agriculture, Water and Forestry, Abraham Nehemia said that “Africans must do intensive research to come up with workable innovative solutions that will guarantee sustainable water supply in the future. This will not only ensure economic prosperity but also ensure the next generation does not face the current water challenges some African countries, including Namibia, face”. Nehemia made the comments at the 18th WaterNet Symposium that started on the 25th of November 2017 in Swakopmund. Nehemia said the management and supply of water remain a challenge not only for Namibia but the whole of SADC due its landscape and semi-arid conditions, occasional floods as well as ever-changing climate. He added that challenges faced such as increased population and economic growth, variable climate need innovative approaches and strategies towards securing water for Africa, its economy and environment.

City to build N$1,1b water reclamation plant27 It is anticipated that Windhoek will have a second reclamation plant. With the second plant in operation, City of Windhoek will produce more water, and less water will be sourced from NamWater. It is understood that the city spends about N$250 million to N$300 million buying water from NamWater annually. The estimated length for the construction of the new reclamation plant could take between two and five years. It is envisaged that the new plant will be constructed next to the current Gammams Water Works in Goreangab, Katutura. 60% of the potable water supplied to Windhoek and Windhoek Rural comes from NamWater as the city only has two aquifers and a water reclamation plant which make up the remaining 40%.

Namwater reservoir 60% complete Work on the new NamWater 12 000 m³ reservoir and an associated pipeline28, taking place on Namibia’s northern-most border with Angola, is now over 60 percent complete, with the overall completion expected take place well in advance of the contractual date of 12 April 2018.

https://www.namibian.com.na/61336/read/Noordoewer-grape-workers-struggle-for-potable-water https://www.newera.com.na/2017/10/26/water-sustainability-research-needed/ 27 https://www.namibian.com.na/61238/read/City-to-build-N$11b-water-reclamation-plant 28 http://www.confidente.com.na/2017/10/namwater-reservoir-60-complete/ 26

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The concrete reservoir, situated near the Ndama Water Treatment Plant, is being built to expand the water storage capacity in the Kavango region. The current storage capacity at Rundu is insufficient to

Country Brief – NAMIBIA

November 2017

sustain the target area for the recommended 48-hour period. The new facility has been designed to cater for the increased future water storage demands for the arid region.

Temporary solution for Onamatanga water woes29 Following the ongoing water woes at Onamatanga over the years the government has taken the temporary measure to ferry tanks of water to the community until a permanent solution is found.

Telecommunications 8 new 4G sites in Windhoek30 AS part of its major network and infrastructure upgrade project, the 081Every1, by the country’s premier telecommunications giant, MTC, has commissioned new six network LTE (4G) sites in Windhoek. This new site upgrades are 3G and 4G, in order to cater for the substantial network coverage and capacity, especially in and around the central business district (CBD) of Windhoek. As part of 081Every1, a total of 50 new sites are planned for Khomas region, and are allocated as follow: 18 sites will be for Windhoek urban, 21 for Windhoek rural and one site share. A site share refers to a shared cell tower, by one or two network operators/carriers, for their individual network coverage spectrums. It involves carriers sharing the same cell tower, antenna frame or rooftop, but carriers will still install their own access infrastructure.

Namibia improves its ICT index rating31 The most recent data from Research ICT Africa, which compares prices for the telecommunication sector, indicates that in the second quarter of 2017 Namibia ranked 16th among African countries and 4th in SADC, in terms of offering the most affordable voice and SMS products. Communications Regulatory Authority of Namibia (CRAN) data also suggests that the general trend is a shift away from voice and SMS revenues towards data revenues, driven by over-the-top (OTT) services, such as social media and other internet provider-based services. Namibia is ranked 21st out of African countries and 5th in SADC in terms of offering affordable mobile prepaid broadband prices. The 2016 annual Telecommunications Sector Performance Review, which is available on the CRAN website, evaluates the developments in the ICT sector and takes numerous aspects into account.

Windhoek to commercialise optic fibre32

https://www.newera.com.na/2017/11/23/temporary-solution-for-onamatanga-water-woes/ http://www.confidente.com.na/2017/11/mtc-goes-live-with-8-new-4g-sites-in-windhoek-2/ 31 https://www.newera.com.na/2017/11/16/namibia-improves-its-ict-index-rating/ 32 https://www.namibiansun.com/news/windhoek-to-commercialise-optic-fibre2017-11-03/ 30

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The City of Windhoek is to commercialise its optic-fibre network. Its electricity department will give its spare optic fibre to the department of information technology, which plans to enter into publicprivate partnerships with telecommunications operators. The municipality also plans to apply for an

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November 2017

infrastructure network licence from the Communications Regulatory Authority of Namibia (CRAN). At present, the City has 35 network points throughout Windhoek.

The Environment Eco Lodge Awarded33 This year's awards were presented in November 24 at a gala dinner hosted by the Hospitality Association of Namibia. The five desert flowers for Namib Desert Lodge represent the maximum score (100%) in terms of conservation and guiding, energy, water, staff and health, legal and NTB compliance as well as further excellent scores for management, waste, pollution and sewer, building and landscaping, and social responsibility. For clean energy generation a solar system was installed at Namib Desert Lodge in 2014. It provides about 50% of the electricity requirement. A water recycling plant provides the water for the gardens. As far as possible the lodges' grounds have been planted with indigenous trees, shrubs and succulents which thrive on small quantities of water. Waste is sorted into different materials, and efforts are made to dispose of it in an environmentally sustainable manner. Furthermore, Gondwana introduced glass crushers which enable the lodges to recycle their glass waste in a sustainable way.

Smelter sustainability34 DUNDEE Precious Metal has recorded significant progress in its sustainability fight with a strong decline in total energy use across the entire company climbing down from 2,118,523 gigajoules in 2012 to 1,747,601 gigajoules in 2013. The improvements at Tsumeb were driven by a decrease of 38.5 percent per tonne of concentrate smelted in coal and charcoal used as a result of the closure of the reverberatory furnace in August 2013. At Tsumeb, total energy intensity decreased by 18.7 percent.

Hydrogen could deliver one fifth of world carbon cuts 35 Increasing the use of hydrogen in power, transport, heat and industry could deliver around one fifth of the total carbon emissions cuts needed to limit global warming to safe levels by mid-century, a report by the Hydrogen Council said recently (November 2017). To encourage industries to use hydrogen, Toyota and Air Liquide helped set up the Hydrogen Council, a global lobby launched in January this year. Its 27 members include automakers Audi, BMW, Daimler, Honda and Hyundai , and energy firms such as Shell and Total.

https://www.namibian.com.na/62016/read/Namib-Desert-Lodge-%E2%80%93-ecological-awesomeness

http://www.confidente.com.na/2014/11/dundee-scores-on-sustainability/ https://www.namibiansun.com/news/hydrogen-could-deliver-one-fifth-of-world-carbon-cuts-2017-11-15/

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The council said using hydrogen for transport, energy generation, energy storage, industry, heat and power could cut annual carbon emissions by 6 billion tonnes by 2050.

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Fuel cell vehicles combine hydrogen and oxygen to produce electricity to power an electric motor, producing water as a by-product. However, making hydrogen from fossil fuels, a common route, also produces some greenhouse gas emissions. So far the take-up of hydrogen vehicles is tiny and industry experts say their wider use is years away, with high purchase prices and a lack of refuelling stations the major barriers.

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Country Brief – NAMIBIA

November 2017

For immediate release Date: 16 November 2017 COMBINED MEDIA RELEASE

OHORONGO & METRECO INVESTIGATES THE VALUE OF TYRE DERIVED FUEL In its quest to replacing up to 80% of imported coal with alternative fuels by 2019, Ohorongo Cement together with a Namibia company, Metallurgical Research and Consulting CC (METRECO) are investigating the use of Tyre Derived Fuel (TDF). If successful, TDF will be the fourth alternative fuel source in the Ohorongo Cement alternative fuel mix. This is after the implementation of wood chips from encroacher bushes, charcoal fines and Refuse Derived Fuel (RDF). According to Camillo Shalli “The Sargberg plant is equipped to combust TDF with minimal risk to the environment while utilizing the energy reservoir contained in scrap tyres. Aiming to halt the practice of stockpiling, landfilling and uncontrolled tyre burning as a waste disposal method in Namibia, METRECO will collect and process scrap tyres, to produce a TDF product that can be used as a partial substitute for coal. In Ohorongo Cement we have found the ideal partner for this venture.” Used tyres are typically considered waste in Namibia which ends up in backyards and landfills. This has led to many concerns related to pollution and health. That is why METRECO has invested resources and engaged Ohorongo Cement to consider the use of TDF to help protect Namibia’s ecological process and systems against pollution and contamination by tyre waste. The cement factory is equipped with modern systems, which enable the company to use TDF, along with other alternative fuels to fire the kiln which is key process of cement manufacturing. “With gas temperatures of up to 2000 Degree Celsius, the cement manufacturing process guarantees a complete combustion and destruction of all toxic substances resulting in no harmful emission and will not compromise the product quality,” says Hans-Wilhelm Schütte the Managing Director of Ohorongo Cement. The use of TDF has multiple benefits, including less waste to landfills and river beds, employment creation as well as tremendous benefits for the environment as results of reduced fossil CO2 emissions. This can also assist in the reduction of fuel imports which can positively affect Namibia's trade balance.

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Several cement plants in Europe are already burning tyres successfully and have demonstrated that the overall environmental impact of using tyres in the fuel mix is reduced when compared with burning coal alone.

The two companies formerly started this venture in October 2017.

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November 2017

Petrus Elago Member of METRECO and Ohorongo Cement’s Business Development Manager Tobias Konzmann formalized the tyre derived fuel venture on behalf of the two companies.

-EndCONTACT: CAMILLO SHALLI METRECO MANAGING MEMBER Cell: +264813598592 Email: cshalli@gmail.com

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ESTHER MBATHERA (CPRP) OHORONGO CEMENT PR & CORPORATE COMMUNICATIONS MANAGER Tel: +264 61 389 355 Cell: +264 811 622 253 Email: mbathera.esther@ohorongo-cement.com

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November 2017

Road and Transport Inauguration of multimillion dollar road36 Works and Transport Minister Alpheus !Naruseb has inaugurated the N$216 million OshakatiOmungwelume road as part of government’s efforts to promote regional connectivity and enhance trade through road networks. The 38-km stretch of road links Oshana, Ohangwena and Omusati region and was inaugurated on Wednesday. Apart from alleviating poverty, the road also created 202 jobs for the local community, while 140 employees received training from the contractor, Zhongmei Engineering, that will aid

N$200 million earmarked for access roads in Ohangwena and Omusati37 Nearly N$200 million has been earmarked for the construction of 23 roads in Omusati and Ohangwena regions to give residents clear access to clinics and schools in the flood-prone areas. The project envisages to flood-proof 34 access roads with a combined length of 128 km. Total project cost is approximately N$200 million, of which close to N$60 million will come from government coffers. A grant from the German Financial Corporation through KfW Development Bank will sponsor close to N$140 million for the project, which will be carried out by six Namibian emerging contractors. The two-year project is jointly financed by the Republic of Namibia and the Federal Republic of Germany. During the first phase, a total of 23 access roads with a combined length of 98 km will be constructed, all of them in the Omusati Region, which is particularly prone to flooding. The work will improve basic sand tracks leading to public facilities. The works in Omusati will improve access to seven clinics that serve a potential 75,000 patients annually and 18 schools which employ about 400 teachers and have 9,000 learners.

Namibia, China sign grant aid, donation agreements38

https://www.newera.com.na/2017/11/09/naruseb-inaugurates-multimillion-dollar-road/ https://www.newera.com.na/2017/11/13/n200-million-earmarked-for-access-roads-in-ohangwena-andomusati/ 38 https://www.newera.com.na/2017/11/20/namibia-china-sign-grant-aid-donation-agreements/ 37

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Vice Minister of Commerce of China Qian Keming and Namibia’s Deputy Minister of Economic Planning Lucia Iipumbu signed an agreement aimed at financing the dual carriageway to Hosea Kutako International (HKI) Airport and another agreement in support of wildlife protection equipment. The Chinese government provided the Namibian government a grant aid about N$400 million for the HKI airport road, while the second agreement for the donation of wildlife protection equipment is valued at N$14 million.

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November 2017

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Financing

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November 2017

Arandis 4th Investment Conference and Uranium Festival39 The conference had a focus on investment opportunities in Arandis, positioning Arandis as a preferred logistics hub, showcasing the Erongo Region’s potential opportunities in uranium mining and tourism exploring renewable energy and IT solutions, and creating networking opportunities across various business sectors.

Namibia, China sign grant aid, donation agreements40 Vice Minister of Commerce of China Qian Keming and Namibia’s Deputy Minister of Economic Planning Lucia Iipumbu signed an agreement aimed at financing the dual carriageway to Hosea Kutako International (HKI) Airport and another agreement in support of wildlife protection equipment. The Chinese government provided the Namibian government a grant aid about N$400 million for the HKI airport road, while the second agreement for the donation of wildlife protection equipment is valued at N$14 million. EIF signs N$4,3m agreement with GCF41 According to an EIF media statement, Benedict Libanda, chief executive of the EIF signed the agreement with Pa Ousman Jarju, GCF director of country programming. Environment and Tourism Minister, Pohamba Shifeta witnessed the signing ceremony during the United Nations Climate Change Conference in Bonn, Germany on 15 November 2017. The financial support will be used to strengthen the institutional capacities of the Ministry of Environment and Tourism, which is the GCF national designated authority for Namibia, to efficiently engage the GCF as well as to improve coordination in view of planning and climate programming for Namibia. Moreover, the readiness grant will enable the ministry to conduct multi-stakeholder consultations, nationally, to ensure that its approach to country programming is underpinned by strong local engagement. This is in line with the immense responsibility of providing strategic leadership in ensuring that Namibia's interactions with the GCF are in harmony with the country's development priorities as well as with GCF investment criteria. Libanda said the EIF has lined up projects worth N$380 million in the areas of agricultural resilience, renewable energy and ecosystem adaptation for GCF submission before the end of 2017.

https://www.newera.com.na/2017/10/27/4th-arandis-investment-conference-launched/ https://www.newera.com.na/2017/11/20/namibia-china-sign-grant-aid-donation-agreements/ 41 https://www.namibian.com.na/61865/read/EIF-signs-N$43m-agreement-with-GCF 40

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Under the National Adaptation Plans (NAPs), parties agreed that the Adaptation Committee, under the UN Framework Convention on Climate Change Secretariat, will further assist countries to formulate and implement NAPs in 2018. Under this funding window, Namibia will access US$3 million from the GCF for the formulation of its national adaptation plan, which will further strengthen national priorities for measures to address adaptation to climate change.

Country Brief – NAMIBIA

November 2017

Tenders

Tender No: NCS/OIB/NW-01/2018 DESIGN, SUPPLY AND INSTALL AUTOMATED SELF-CLEANING FILTERS PLANT FOR RESEARCH PURPOSE ON THE INVESTIGATION OF THE EFFECTIVENESS OF THE FILTERS IN REMOVING IMPURITIES FROM RIVER WATER AT N’KARAPAMWE TREATMENT PLANT, RUNDU

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Enquiries can be forwarded to: The Procurement Management Unit Mrs. Adda Kadhila Tel No: 061-712066 Email Address: KadhilaAd@namwater.com.na Closing date: Tuesday 12 December 2017 at 11h00

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November 2017

CONSULTANCY SERVICES MODEL AUDIT OF THE TECHNICAL FINANCIAL AND ECONOMIC ASSESSMENT MODEL FOR RENEWABLE ENERGY PROJECTS TENDER NUMBER: RFP - ECB - MODAUD/2017/11/005 Tender Closing Date and Time The Tender closes at 12h00 Namibian time, on Monday 11 December 2017. Public Tender Opening will be conducted at 12:30, in the ECB Board Room.

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Enquiries All enquiries should be addressed to: Ms. Danel Wakudumo Tel: +26461-374 300 E-mail: dwakudumo@ecb.org.na

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November 2017

CONSULTANCY SERVICES NATIONAL ELECTRICITY TARIFF STUDY - DISTRIBUTION INDUSTRY NAMIBIA TENDER NUMBER: RFP - ECB - TARSTUDY/2017/11/001 Tender Closing Date and Time The Tender closes at 12h00 Namibian time, on 07 December 2017. Tender opening at 12H30.

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Enquiries All enquiries should be addressed to: Ms. Danel Wakudumo Tel: +26461-374 300 E-mail: dwakudumo@ecb.org.na

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November 2017

Careers and Jobs

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November 2017

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