Enhancing Water Availability in Namibia

Public-Private Partnerships (PPP)

AUTHOR: David Jarrett and Team Editor@ RDJ Publishing and RDJ Group ChiefExecutiveOfficer

Namibia's climate is characterized by low and erratic rainfall, with the majority of the country receiving less than 250 millimeters of rain annually This situation is compounded by high evaporation rates and recurrent droughts Consequently, the nation relies heavily on groundwater and limited surface water sources. The increasing demand for water, driven by population growth, urbanization, and industrial activities, places additional strain on these limited resources

The development of water infrastructure requires significant capital investment, which is often beyond the capacity of the public sector alone. Public-Private Partnerships (PPPs) can attract private sector financing to fund the construction and maintenance of water treatment plants, desalination facilities, and distribution networks

In terms of the Namibian Public Private Partnership Act, 2017 (Act No 4, 2017), “value for money” means that [a] public private partnership agreement results in a net benefit, to the public entity or users, defined in terms of cost, price, quality, quantity or risk transfer or a combination of cost, price, quality, quantity or risk transfer

Further, “public private partnership project” means an agreement between a public entity and a private entity, in terms of which –

(a) the private entity provides public infrastructure assets or services for use, either directly or indirectly, by the public;

(b) investments are made by or management of the infrastructure asset or service is undertaken by the private entity for a specified time;

(c) risk is optimally shared between the private entity and the public entity; and

(d) the private entity receives performance linked payments;

For instance, the Erongo Desalination Plant, a PPP between the Namibian government and a private company [Orano (formerly Areva)], has already demonstrated the potential of such collaborations in providing a reliable water source to the coastal region.

Private companies often bring advanced technologies and innovative solutions to water management Desalination, wastewater treatment, and smart water management systems are areas where private sector expertise can be particularly valuable. By incorporating cutting-edge technologies, Namibia can improve the efficiency and sustainability of its water supply systems. For example, reverse osmosis desalination technology, employed in PPP projects, can significantly enhance freshwater production from seawater

Private sector involvement can lead to more efficient management and operation of water facilities. Through PPPs, Namibia can benefit from the private sector's experience in optimizing operational processes, reducing water losses, and enhancing service delivery This can result in cost savings and improved reliability of water supply An example is the Windhoek Goreangab Operating Company (WINGOC), a PPP that manages the Goreangab Water Reclamation Plant, ensuring the efficient reclamation and supply of potable water to Windhoek residents

PPPs can facilitate knowledge transfer and capacity building within the public sector. By working alongside private partners, public sector employees can gain valuable skills and expertise in water management, which can be applied to other projects and sectors This capacity building is essential for ensuring the long-term sustainability of water infrastructure and services.

In terms of article 100 of the Namibian Constitution, land, water and natural resources belong to the State However, water infrastructure projects are often associated with significant risks, including financial, technical, and operational risks PPPs allow for the sharing of these risks between the public and private sectors, reducing the burden on the government and increasing the likelihood of project success. This risk-sharing mechanism can make water projects more attractive to investors and enhance their feasibility

Case Studies and Examples

Erongo Desalination Plant

The Erongo Desalination Plant being a prime example of how PPPs can be utilized to increase water availability in Namibia. The plant, a collaboration between Orano (formerly Areva) and the Namibian government, was established to supply water to the uranium mines in the Erongo region It has since expanded its supply to meet the needs of the local municipalities, providing a reliable source of water in an otherwise arid region n Namibia, Orano is represented by its subsidiary Orano Resources Namibia.

Windhoek Goreangab Operating Company (WINGOC)

The Goreangab Water Reclamation Plant, operated by WINGOC, is another successful PPP in Namibia. The plant treats domestic wastewater to produce potable water,I which is supplied to the residents of Windhoek Successful direct reclamation as practiced in Windhoek is based on the practice of diverting industrial and other potentially toxic waste water from the main domestic waste water stream.

This innovative approach to water reclamation has helped to alleviate water shortages in the capital city and serves asamodelforotherregionsfacingsimilarchallenges.

While PPPs offer numerous benefits, they also need the supportof:

A clear and supportive regulatory framework is essential for the successful implementation of PPPs. Namibia must ensure that its legal and regulatory environment is conducive to attracting private sector investment and facilitatingeffectivepartnerships

Transparency and accountability are critical to gaining public trust and ensuring the success of PPP projects Clear contractual arrangements, performance metrics, and regular monitoring are necessary to ensure that private partnersdeliverontheircommitments

Withafocusonsocialandenvironmentalimpactstoensure sustainable development, PPPs should incorporate the needed environmental impact assessments and engage withlocalcommunitiestoaddressanyconcernsandensure thatprojectsaresociallyinclusive.

Public-Private Partnerships therefore present a viable and effective solution for enhancing water availability in Namibia. By leveraging the financial resources, technological expertise, and operational efficiencies of the private sector, Namibia can address its water scarcity h ll ff ti l