The Namibian government has secured a loan valued at N.dollars two billion from Germany, geared towards upgrading key infrastructural projects in the country and fostering economic development.
Signing the agreement here on Tuesday, Minister of Finance and Public Enterprises, lipumbu Shiimi, said the loan, to be facilitated through the German Development Bank (KfW), will support the construction and rehabilitation of key Namibian roads and water infrastructure.
Shiimi said two loan agreements valued at N.dollars 745 million and N.dollars 932 million respectively were signed between the Namibia Water Corporation (Namwater) and KfW, aimed at funding the second Direct Potable Reclamation Plant in the Central Area of Namibia and the Namibian Water Sector Support Program.
Meanwhile, the Roads Authority (RA) secured a loan worth N.dollars 373 million, aimed at funding the rehabilitation and upgrade of the B2 section road between Usakos and Karibib, which forms part of the Trans-Kalahari Corridor and the Walvis Bay-Ndola-Lubumbashi Development Road.
“We cannot have development without water. Investing in infrastructure development is imperative. Naturally, people frown when people borrow but if you are borrowing for development, I think people must not frown on that. If you are borrowing for consumption then you have to be careful,” said Shiimi.
He noted that Namibia and Germany have a longstanding relationship and the loan further signifies a milestone for Namibia’s economic development.
At the same occasion, KfW’s country director in Namibia, Beatrice Luke, said the concession loans are co-financed by the German Ministry for Economic Cooperation and Development.
She noted that KfW has been supporting the expansion of the Namibian road network through grants for access roads and labour-based road construction since independence, noting that the construction of the roads is scheduled to start in the second half of 2023.
“Large parts of the main corridor roads are being rehabilitated and partly extended to contribute to the economic development of the country. To date, the construction of more than 1800 kilometres of road has been co-financed by Germany through KfW in close cooperation with the Namibian government, through the RA,” she said.
Source: The Namibian Press Agency
