The objectives of NDP5, Harambee Prosperity plan, real economic growth, employment creation and improved income equality can only be achieved through sustained investment in physical infrastructure. Namibia faces financial constraints to expedite crucial infrastructure development, maintain and upgrade existing facilities. The traditional funding sources are inefficient and inadequate to address the massive infrastructure financing requirement. A more concerning reality is the lifecycle cost of an asset. We often dwell on the capital cost and overlook the important part of the equation – the operation and maintenance. Therefore, the country needs to implement strategies to address the funding shortage, operation, and maintenance efficiencies and unlock potential economic benefits.
The government has embraced the PPP approach to spearhead infrastructure investment, however concentrated efforts from stakeholders, state owned enterprise and local authority is required urgently to utilize this procurement method.
The total infrastructure funding requirement for Namibia is estimated to be in the region of more than N$250 billion. An estimated N$ 100 billion can be raised through a combination of user fee charges, Government subsidies and borrowing, however a deficit of approximately N$ 150 billion is required to bridge the infrastructure gap.
At the current rate, unemployment is expected to continue rising, our national debt levels are expected to continue peaking and with the inadequate infrastructure capacity, overall service delivery is expected to continue decreasing.
We believe the solution to addressing this dilemma is by attracting foreign direct investments through good Public Private Partnership projects. Led by Certified PPP Professionals, we are a leading advisory firm founded in Namibia. We support local governments to attract
private sector investments, by identifying, structuring, and marketing attractive PPP projects that have the potential to unlock regional economic activity, create employment and develop sustainable infrastructure. By using international best practices, and applying tool, techniques and local flavor, our professional team of experts will guide your organization through the intricacies of identifying and developing investment opportunities tailor made for your public office.
Call us today to discuss your PPP needs.
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PANASHE DARINGO (CP3P)
Certified PPP Professional
Director
Mondjila Project Advisory & Management
