NamWater buys more land for new reservoir

The Swakopmund Town Council has decided to sell four erven measuring more than 200 000 square meters to NamWater. The water corporation wanted the land donated, but will now have to fork out N$2,74 million.
NamWater needs the land to expand and upgrade its water supply capacity. After obtaining valuations for the land and based on averages determined the land value at N$13,40 per square meter.
The blocks are located next to the current NamWater reservoir on the eastern outskirts of the coastal town. The portion of land known as portion 22 is leased by NamWater from Council. With its intention to buy these three additional blocks, NamWater now also wants to purchase the land it currently leases.
Although the sale of the blocks was approved by council in August 2016 already, no purchase price has been determined. The blocks form part of Council’s town planning for possible future expansion of NamWater’s operations.
As is customary in such transactions, council acquired various valuations for the blocks. Portion 22 (the current lease area) measures 49 764 m². The three additional blocks applied for measure 49 773 m²; 30 157 m² and 74 812 m² respectively. Based on the average of valuations received, an average purchase price of N$13.40 per square meter was determined.
NamWater initially applied that Council donate the land. In this regard, it states in the agenda of the last ordinary monthly council meeting that this is “not advisable” as “Council is not a shareholder of Namibia Water Corporation (NamWater)”.
While the purchase price was approved at the recent Council meeting (once the Minister has given its approval) various terms and conditions were set out. One being NamWater may not establish a township on these portions of land.

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