NamWater’s Debt Recovery Efforts Gaining Momentum: Local Authorities Step Up
In a promising turn of events for Namibia’s water utility, NamWater is witnessing a favorable response from local authorities amidst its ongoing efforts to recover a substantial N.4 billion in outstanding debts. This positive news is crucial as sustainable access to water relies heavily on the utility’s financial health.
Positive Engagement with Local Authorities
According to Lot Ndamanomhata, NamWater’s spokesperson, many local authorities contacted for payment have expressed a strong willingness to settle their obligations. Ndamanomhata shared in a recent statement, “We are pleased with the overwhelmingly positive responses we’ve received from local authorities so far. We will continue to approach those with outstanding debts and encourage them to meet their financial commitments.” This proactive dialogue has already yielded results, with some councils stepping up to honor their financial responsibilities.
Significant amounts are owed by major councils, with the Rundu Town Council alone being responsible for a noteworthy N3.9 million and the Rehoboth Town Council at N8.5 million. Such revelations highlight the critical nature of these debts in the context of Namibia’s water supply sustainability. Given that approximately 87% of the country’s population relies on NamWater for water access, it is vital that these financial issues be resolved efficiently.
A Commitment to Support and Sustainability
NamWater’s approach is not just about payment recovery but also focuses on positively reinforcing partnerships with local authorities. Ndamanomhata emphasizes, “For those that are already complying, we will continue to engage with them to ensure payments are made on time.” The company’s commitment includes offering support to those localities that may require more time to settle their balances, demonstrating a collaborative spirit aimed at ultimately enhancing the sustainability of Namibia’s water supply.
The ongoing dialogue and arrangements, such as the monthly payment plan initiated by the Rehoboth Town Council, illustrate a willingness to cooperate toward resolving these challenges. Mayor Justin Coetzee confirmed their commitment, stating, “We had discussions with NamWater; we have entered a monthly payment arrangement.” The mutual understanding will undoubtedly aid in easing financial pressures on the utility.
Challenges Ahead for NamWater
Despite the recent successes in debt recovery discussions, NamWater still faces substantial financial hurdles. Rising operational costs, particularly soaring energy prices, complicate the corporation’s fiscal landscape. NamWater has underscored the importance of timely payments, warning that failure to settle debts could lead to more stringent measures to safeguard national water supply services.
Moreover, the company is persistent in advocating for ongoing investments in water infrastructure, particularly in underserved communities. This focus will ensure not only the stability of its operations but also the enhancement of water services across Namibia.
Conclusion
As NamWater continues its crucial work to stabilize its finances and ensure reliable water supply services, the response from local authorities has been encouraging. Collaboration and commitment will be key strategies as Namibia navigates these financial challenges. With focused efforts towards debt recovery and enhanced support for local councils, the future looks promising for the water sector in Namibia.
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