Elbowed to the side by debts
Projects that bit the dust in 2022-2023
New police stations
Epembe Vision School
Rehabilitation centre for addicts
Ondangwa State Hospital
Government reaffirming last week that it will not embark on new development projects for the 2022-2023 financial year due to enormous state debts has left many planned activities on hold, including a vision school for children from poor backgrounds.
The state said it cannot carry out new projects for the year while repaying part of N$125 billion in debt it owes – which represents 66.7% of the country’s gross domestic product (GDP).
Infrastructural projects are frozen to give government the best chance of reducing its staggering debt, but commentators have said the decision is a slap in the face of efforts to create jobs.
The deferred investments are contained in the development and investment expenditure estimates programme for the 2022/23 fiscal year – following finance minister Iipumbu Shiimi’s budget address last week.
Education
In the education sector, the construction of a vision secondary school at Epembe, a primary school at Otjomuise and a secondary school at Donatus are among the projects deferred for the 2022/23 fiscal year.
Health
On the health front, the construction of the Khomas District Hospital has been delayed for the current fiscal year as well as the construction and renovation of the Oshana regional management team office. Meanwhile, the upgrading of the Opuwo District Hospital, the Lüderitz State Hospital and the Otjiwarongo District Hospital has been put on hold along with the construction of prosthetic and orthotics units, the Ondangwa District Hospital and the National Public Health Laboratory. The upgrading of the Etegameno Rehabilitation and Resource Centre, the state’s only rehabilitation facility that closed in 2018 because government could not afford multi-disciplinary specialised professionals, has also been deferred.
Transport
Infrastructure projects abandoned in the transport sector include the upgrading of the 386-kilometre-long Mariental-Keetmanshoop road, while the strategic Mpacha Airport in Katima Mulilo is unlikely to be upgraded. The upgrading and rehabilitation of the Aus–Ludertiz railway line has also been delayed. The upgrading of vehicle and driver testing stations across the country is also delayed for the current fiscal year.
Sports and youth
On the youth and sporting front, funding for the construction of the Mariental and Nkurenkuru multi-purpose youth centres is deferred while no funding has been provided for the construction of the Lüderitz waterfront and the Usakos mini sports complex, or the renovation of the Mariental sports stadium.
Correctional services
The construction and upgrading of several correctional facilities has also been delayed for the current fiscal year, including the renovation and reinforcement of the Oluno cells, the construction of the New National Correctional Services Training College, the renovation and rehabilitation of the Walvis Bay Correctional Facility and the construction of a new piggery farm at the Evaristus Shikongo Correctional Facility.
Policing
On the policing front, the construction of Class C police stations at Otjomuise, Kleine Kuppe, Greenwell Matongo in Katima Mulilo, Brakwater, Chinchimane, and Mpungu have been put on hold.
The construction and upgrading of a B Class police station at Epako in Gobabis and police stations in Kuisebmund and Rehoboth are also delayed for the current fiscal year.
Spend money to make money
Commenting on the reduction of spending with regards to infrastructure, Popular Democratic Movement parliamentarian Nico Smit said while it is important to reduce Namibia’s debt obligations, infrastructure spending would assist the country’s economic turnaround.
“It is totally wrong not to spend on infrastructure, especially capital projects with the Covid-19 pandemic which saw many people losing their jobs,” he said.
Labour commentator Herbert Jauch said the budget was not proactive in its efforts to bring about economic growth.
“When you can’t spend on infrastructure, the likelihood of economic recovery is zero. It is a continuation of what we have seen in recent years.
“My sense is that it is a hope not to inflate the debt, but not a budget looking to overturn slow growth,” he said.
The state said it cannot carry out new projects for the year while repaying part of N$125 billion in debt it owes – which represents 66.7% of the country’s gross domestic product (GDP).
Infrastructural projects are frozen to give government the best chance of reducing its staggering debt, but commentators have said the decision is a slap in the face of efforts to create jobs.
The deferred investments are contained in the development and investment expenditure estimates programme for the 2022/23 fiscal year – following finance minister Iipumbu Shiimi’s budget address last week.
Education
In the education sector, the construction of a vision secondary school at Epembe, a primary school at Otjomuise and a secondary school at Donatus are among the projects deferred for the 2022/23 fiscal year.
Health
On the health front, the construction of the Khomas District Hospital has been delayed for the current fiscal year as well as the construction and renovation of the Oshana regional management team office. Meanwhile, the upgrading of the Opuwo District Hospital, the Lüderitz State Hospital and the Otjiwarongo District Hospital has been put on hold along with the construction of prosthetic and orthotics units, the Ondangwa District Hospital and the National Public Health Laboratory. The upgrading of the Etegameno Rehabilitation and Resource Centre, the state’s only rehabilitation facility that closed in 2018 because government could not afford multi-disciplinary specialised professionals, has also been deferred.
Transport
Infrastructure projects abandoned in the transport sector include the upgrading of the 386-kilometre-long Mariental-Keetmanshoop road, while the strategic Mpacha Airport in Katima Mulilo is unlikely to be upgraded. The upgrading and rehabilitation of the Aus–Ludertiz railway line has also been delayed. The upgrading of vehicle and driver testing stations across the country is also delayed for the current fiscal year.
Sports and youth
On the youth and sporting front, funding for the construction of the Mariental and Nkurenkuru multi-purpose youth centres is deferred while no funding has been provided for the construction of the Lüderitz waterfront and the Usakos mini sports complex, or the renovation of the Mariental sports stadium.
Correctional services
The construction and upgrading of several correctional facilities has also been delayed for the current fiscal year, including the renovation and reinforcement of the Oluno cells, the construction of the New National Correctional Services Training College, the renovation and rehabilitation of the Walvis Bay Correctional Facility and the construction of a new piggery farm at the Evaristus Shikongo Correctional Facility.
Policing
On the policing front, the construction of Class C police stations at Otjomuise, Kleine Kuppe, Greenwell Matongo in Katima Mulilo, Brakwater, Chinchimane, and Mpungu have been put on hold.
The construction and upgrading of a B Class police station at Epako in Gobabis and police stations in Kuisebmund and Rehoboth are also delayed for the current fiscal year.
Spend money to make money
Commenting on the reduction of spending with regards to infrastructure, Popular Democratic Movement parliamentarian Nico Smit said while it is important to reduce Namibia’s debt obligations, infrastructure spending would assist the country’s economic turnaround.
“It is totally wrong not to spend on infrastructure, especially capital projects with the Covid-19 pandemic which saw many people losing their jobs,” he said.
Labour commentator Herbert Jauch said the budget was not proactive in its efforts to bring about economic growth.
“When you can’t spend on infrastructure, the likelihood of economic recovery is zero. It is a continuation of what we have seen in recent years.
“My sense is that it is a hope not to inflate the debt, but not a budget looking to overturn slow growth,” he said.
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