Rundu’s NamWater bill balloons to over N$330 million
Water rationing on the cards if debt not addressed
Rundu's NamWater debt has seen a steep rise from N$76 million in September 2019 to over N$200 million by June 2023 and more than N$330 million by the end of February.
The national water utility, NamWater, has threatened to ration Rundu Town Council’s water supply over an unpaid debt of approximately N$330 million – one of the highest outstanding debts owed to the water utility company.
In a letter seen by Namibian Sun and dated 18 February, NamWater CEO Abraham Nehemia issued a final warning letter over the Rundu Town Council’s overdue payment of N$333 926 128.70.
“Letters notifying the council of this delinquent status were sent on numerous occasions. To date, we have not received payment or an acceptable repayment proposal. If payment or remedial suggestions are not received by 28 February 2025, we will have no choice but to ration the water supply. The last payment made on your account was in November 2024,” the letter read.
Despite the looming threat, Rundu Town Council CEO Olavi Nathanael assured the public last week that there is no need to panic, insisting that "everything is under control."
Speaking to Namibian Sun on Monday, he said council is taking steps to transition the town to prepaid water payment systems.
"There is a whole hierarchy in place. We are transitioning to a prepaid system to help manage the debt, which NamWater is also a party to. To this end, they are working on a tripartite agreement that includes us, NamWater, and the [urban and rural development ministry]," he added.
Agreement under discussion
He confirmed that the debt to NamWater stood at N$333 million.
"That’s why, as a council, we are rolling out the prepaid system to collect revenue in real-time. This is part of our debt management strategy," he said.
Under this system, consumers with outstanding debt will have 30% of their payments allocated to settling old debt, while 70% will be applied to current water usage.
"This arrangement is necessary to support NamWater while ensuring continued service. That’s why the agreement involves three parties," Nathanael explained last week.
On the issue of potential water rationing, Nathanael said NamWater's move is procedural, adding that a meeting was slated to take place to conclude the agreement between the parties.
"This agreement is about servicing the debt. Remember, we had an intervention, either on 30 September 2021 or 2022 – I’m not certain of the exact year – where NamWater was supposed to assist us with a grant from the African Development Bank, which was secured due to our intervention. However, they have not yet disbursed that money, which was meant for upgrading water infrastructure," he claimed.
"If they haven’t met their obligations, how can they threaten us? It doesn’t make sense. That’s why they called for a meeting along with other indebted local authorities. I believe they will gather us all in one room to discuss the agreement they’ve drafted."
The meeting was scheduled to take place last week and no further updates have been provided since.
This week, NamWater confirmed that local authorities, private water consumers and rural communities owe the SOE a total of N$2.4 billion in outstanding payments as of 28 February.
Long-standing concern
Rundu’s NamWater debt has been spiralling out of control for years. In September 2019, the town owed N$76 million. By 30 June 2023, this figure had surged to over N$200 million, according to the council’s strategic finance executive, Sam Nekaro.
Nekaro disclosed these figures during a parliamentary hearing in 2023 on a motion seeking to write off local authorities' historical debts.
Namibian Sun previously reported that Rundu's failure to pay NamWater had resulted in frequent water cuts, leaving residents without tap water for days, sometimes weeks.
During an October 2024 meeting with urban and rural development minister Erastus Uutoni, Rundu mayor Gabriel Kanyanga admitted the situation had reached a critical point.
"As a council, we’ve been in communication with NamWater, the [Kavango East] governor, and the chairperson of the regional council regarding this issue for years. When I reviewed previous reports, it was clear that by 2020, Rundu could face water challenges. Unfortunately, those projections have come true," Kanyanga added.
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In a letter seen by Namibian Sun and dated 18 February, NamWater CEO Abraham Nehemia issued a final warning letter over the Rundu Town Council’s overdue payment of N$333 926 128.70.
“Letters notifying the council of this delinquent status were sent on numerous occasions. To date, we have not received payment or an acceptable repayment proposal. If payment or remedial suggestions are not received by 28 February 2025, we will have no choice but to ration the water supply. The last payment made on your account was in November 2024,” the letter read.
Despite the looming threat, Rundu Town Council CEO Olavi Nathanael assured the public last week that there is no need to panic, insisting that "everything is under control."
Speaking to Namibian Sun on Monday, he said council is taking steps to transition the town to prepaid water payment systems.
"There is a whole hierarchy in place. We are transitioning to a prepaid system to help manage the debt, which NamWater is also a party to. To this end, they are working on a tripartite agreement that includes us, NamWater, and the [urban and rural development ministry]," he added.
Agreement under discussion
He confirmed that the debt to NamWater stood at N$333 million.
"That’s why, as a council, we are rolling out the prepaid system to collect revenue in real-time. This is part of our debt management strategy," he said.
Under this system, consumers with outstanding debt will have 30% of their payments allocated to settling old debt, while 70% will be applied to current water usage.
"This arrangement is necessary to support NamWater while ensuring continued service. That’s why the agreement involves three parties," Nathanael explained last week.
On the issue of potential water rationing, Nathanael said NamWater's move is procedural, adding that a meeting was slated to take place to conclude the agreement between the parties.
"This agreement is about servicing the debt. Remember, we had an intervention, either on 30 September 2021 or 2022 – I’m not certain of the exact year – where NamWater was supposed to assist us with a grant from the African Development Bank, which was secured due to our intervention. However, they have not yet disbursed that money, which was meant for upgrading water infrastructure," he claimed.
"If they haven’t met their obligations, how can they threaten us? It doesn’t make sense. That’s why they called for a meeting along with other indebted local authorities. I believe they will gather us all in one room to discuss the agreement they’ve drafted."
The meeting was scheduled to take place last week and no further updates have been provided since.
This week, NamWater confirmed that local authorities, private water consumers and rural communities owe the SOE a total of N$2.4 billion in outstanding payments as of 28 February.
Long-standing concern
Rundu’s NamWater debt has been spiralling out of control for years. In September 2019, the town owed N$76 million. By 30 June 2023, this figure had surged to over N$200 million, according to the council’s strategic finance executive, Sam Nekaro.
Nekaro disclosed these figures during a parliamentary hearing in 2023 on a motion seeking to write off local authorities' historical debts.
Namibian Sun previously reported that Rundu's failure to pay NamWater had resulted in frequent water cuts, leaving residents without tap water for days, sometimes weeks.
During an October 2024 meeting with urban and rural development minister Erastus Uutoni, Rundu mayor Gabriel Kanyanga admitted the situation had reached a critical point.
"As a council, we’ve been in communication with NamWater, the [Kavango East] governor, and the chairperson of the regional council regarding this issue for years. When I reviewed previous reports, it was clear that by 2020, Rundu could face water challenges. Unfortunately, those projections have come true," Kanyanga added.
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