UPDATE: APR-JUN 2021 Programme for the Provision of Low-Cost Land for Housing

MAny shacks scattered across a sandy valley.

  • New Partner Towns and Revolving Funds
  • Pegging of Layouts in Opuwo and Oniipa
  • Keetmanshoop Erf Price Reduction
  • Okahao Road Construction
  • Oshakati Phase Two
  • Karibib
  • FNB Load Scheme
  • Exchange Visits
  • Web-GIS Portal
  • Initiating Collaboration
  • How Does it Work?

NEW PARTNER TOWNS AND REVOLVING FUNDS

Both Okakarara Town Council and Stampriet Village Council have signed a Memorandum of Understanding (MoU) with DWN for the development of new residential extensions for low income earners. Okakarara will receive NAD 250,000 as a donation from Mobile Telecommunication (MTC) to the project revolving fund.

PEGGING OF LAYOUTS IN OPUWO AND ONIIPA

From 28 April to 5 May 2021, the project partner Strydom and Associates pegged 487 erven in the Opuwo layout and 117 erven in the layout of Oniipa. MTC has provided revolving fund capital NAD 250,000 for the Oniipa project.

Client registration is ongoing in Opuwo, with 170 clients registered to date. In Oniipa, the council plans to authorize the initiation of client registration in early July.

Four surveyers working near their vehicle.
Pegging in Oniipa.

KEETMANSHOOP ERF PRICE REDUCTION

In Keetmanshoop the cost for each of the 299 erven with water and sewer connection was NAD 31,797. Registration started in March 2021, but the costs per erf were too high for the majority of low income earners. In June 2021, the Municipal Council therefore resolved to subsidize the sewer reticulation system with separate funds. Through this, the price per erf was reduced to NAD 16,900. By the end of June, 288 people were registered.

Satellite image of Keetmanshoop with new construction highlighted.
Keetmanshoop project layout, bottom right. It is located at the southern periphery of the town, bordering the road south to Grünau and South Africa.

OKAHAO ROAD CONSTRUCTION

After the end of the rainy season in May, road construction started. This is an integral part of the project and erf price of NAD 14,000.

A tanker drives over a muddy road.
Road construction in Okahao.

OSHAKATI PHASE TWO

Oshakati Town Council has approved the development of a second extension, after the successful completion of the first project. Electrification of the first project will also commence shortly, paid for by the Town Council as a contribution to the development of this new residential area.

KARIBIB

Hard rock has increased the servicing costs in Karibib. A donation of NAD 500,000 from Osino Resources is being used to subsidize the servicing of 25 plots, reducing the costs from NAD 50,000 to NAD 30,000 per plot with sewer and water connections.

FNB LOAN SCHEME

Through a new FNB loan scheme, clients of the DWN/NCE land programme are eligible to apply for a loan of up to NAD 50,000 for a period of 1-5 years. The scheme is currently being piloted in Oshakati and Okahao. In Okahao alone, 15 loans have already been paid out.

EXCHANGE VISITS

On the 21st of May 2021, Otjiwarongo Town Council conducted an exchange visit to Oshakati and Okahao, to learn more about the land programme in those two towns. Meetings were held with councillors, CEOs and technical staff.

INITIATING COLLABORATION

Draft MoUs have been discussed with and submitted to Oranjemund, Otavi and Eehnana town councils. Engineering designs and cost estimates for three planned extensions have been submitted to these councils by engineering project partner Knight Piésold. The designs will assist to establish project costs. DWN was also invited to present the programme in Luderitz, Bethanie, Otjiwarongo, Okongo, the Regional Council in Erongo, and the Governors office of Hardap Region.

WEB-GIS PORTAL:

See the following website where all currently active extensions are visible: https://development-workshop-data- hub-dwn.hub.arcgis.com/

HOW DOES IT WORK?

The objective of the programme is to provide assistance to local authorities in the provision of affordable land for housing.

The programme works as follows:

  1. DWN enters into partnership with a local authority, where DWN acts as an agent on behalf of the local authority to develop low-cost residential land;
  2. The local authority provides land, and DWN (together with its private sector partners) provides all services to develop the land, including town planning, land surveying, engineering and conveyancing;
  3. The cost of the residential plots is calculated on the basis of all costs incurred for the development of the new extension, including construction of services (water, electricity, sewers), town planning, land surveying, engineering and conveyancing. There is no profit on the sale of land nor hidden costs, and the land remains the property of the local authority until title is transferred to the new owners;
  4. Extensions can be developed with partial services only in order to keep the costs low (per decisions taken by the respective local authority).

Financial management

  1. All income and expenditures of a project in a specific town are managed through an FNB joint bank account, with two signatories from the local authority and two signatories from DWN. Any transaction from the account needs one signature from each party;
  2. An initial donation from DWN/NCE (or other donor) is deposited into this account, and all payments of clients that are purchasing plots also go into this account;
  3. The account serves to pay the service providers (such as town planner) and the construction of services;
  4. The donation serves to provide initial cash flow and acts as a revolving fund. After one project cycle (extension) is concluded and all clients have paid off their land, the amount of the initial donation is available again for the next phase.

Donors and Supporters

Main donors and supporters: NCE, B2Gold, RMB, German Development Cooperation (GIZ), FNB, MTC.

Additional donors: Bannerman Resources, Osino Resources, Namibian Chamber of Mines.

The contributions of these institutions have almost exclusively been used to establish revolving funds in the different towns.

The programme is jointly implemented by DWN and the NCE and with technical support from Urban Dynamics (town planner), Strydom & Associates (land surveyor), Knight Piésold (Engineer), Lithon (Engineer) and ESI Attorneys (Conveyancer). All these institutions have provided essential support from the beginning, for the design and successful implementation of the programme.