On Tuesday 12 December 2023, the Ministry of Finance and Public Enterprises of the Republic of Namibia and KfW Development Bank, signed an agreement for a concessional loan of NAD 1,026,650,000.00 (approx. EUR 50 mio.) for the financing of the rehabilitation and extension of the Gammams and Otjomuise Wastewater Treatment Plants. The objective of the project is to upgrade the existing wastewater treatment capacities and improve Windhoek’s potable water supply by providing feedwater for the city’s direct potable reclamation plants. The project is financed on behalf of and with funds from the German Federal Ministry for Economic Cooperation and Development and implemented through the KfW Development Bank.

Supporting efforts to secure drinking water for Windhoek

As the driest country in Sub-Saharan Africa, with more than 80% of its land area covered by desert or semi-desert, Namibia regularly experiences extreme and prolonged periods of drought. This results in a highly sensitive water supply situation for the whole country and the Central Area of Namibia, which requires precise demand management, management and reuse of existing water resources as well as urgent development of new ones.

As the water supply situation for Windhoek is becoming increasingly precarious, securing drinking water for Windhoek remains one of the most crucial issues facing the City. The financing of the rehabilitation and extension of the Gammams and Otjomuise Wastewater Treatment Plants is therefore in line with the long-term strategies identified by the City of Windhoek and the Namibian Government with regard to ensuring the supply and most efficient use of water for its citizens.

Once the project is completed, the capacity of the two plants will be improved both in terms of operational capacity and but also with regard to effluent quality. This is intended to safeguard the provision of additional feedwater for a second Direct Potable Reclamation plant (DPR 2) which will contribute to the water supply security of Windhoek as well as help protect water resources in the entire Central Area of Namibia. DPR 2 is also financed by the German Government, through KfW, and will be implemented at the same time as upgrade works are carried out for the wastewater treatment plants. For both projects, KfW is supporting the Namibian Government with concessional loans in local currency. Windhoek’s population of more than 400,000 people are the direct beneficiaries of these investments in the City’s water infrastructure.

The measures will allow Windhoek to adapt to the effects of climate change and improve the resilience of the city’s water supply. They address the high investment needs with regard to the rehabilitation of existing infrastructure as well as investments into new infrastructure to ensure a long-term and sustainable water supply.

In addition to this, the City of Windhoek is continuously striving to create public awareness about the importance of saving water and reducing consumption. To complement this, the City will also pilot a project aimed at reducing water losses throughout the City’s water network. This will be funded by German Development Cooperation, through KfW, in the form of a grant to the value of NAD 30 Mio. (EUR 1.5 Mio).

German Development Cooperation 1990 - 2023

From 1990 until today, the funds of German Development Cooperation amount to EUR 1.6 billion (approx. NAD 32.3 billion). The KfW portfolio under implementation comprises 37 projects with a total volume of EUR 666.2 Mio (approx. NAD 12.9 billion), while over 10 projects with a volume of approx. EUR 300 Mio. (approx. NAD 6.6 billion) are under preparation.

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Photo of Signing Ceremony

Caption: German development cooperation: Sustainable water finance cooperation takes center stage. German Development Bank KFW and the Ministry of Finance and Public Enterprises recently signed an agreement of N$ 1 billion concessional financing to address the sustainable wastewater treatment and water supply for the City of Windhoek.