CTORITA

Theme: Effective Stakeholders RelationsTopic: Local Government Financing in Namibia

ALAN 55th Congress“Local Government Reform Towards Quality Service Delivery”

July 20 -23, Hilton Hotel, Windhoek

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Utility Companies

Bulk Supplier[e.g.

NamPower]

Distributor[e.g. REDs]

Utility Company.

Local Authorities

Bulk Supplier[e.g.

NamWater]

Customer

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Dynamics at play@Central Government/LAs

• Central government appoints boards - LAs are not consulted, not represented.

• Parliament – standing committees do not verify reports from utilities with LAs.

• No complaints and feedback mechanisms for LAs.• Utilities out to impress government with dividends at

the expense of poor communities. Utility companies are profit driven

• Regulatory bodies not transparent to LAs.

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Challenges

Tariff setting process do not consult local authorities as stakeholders.

Tariffs calculations are often not explained to the stakeholders

LAs are expected by their communities to explain tariffs which they do not have a clue about.

Total Cost Recovery often overwrites key principles of a good tariff (e.g. affordability, fairness, equity etc.)

Social responsibility is often compromised.

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Recommendation

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Thank You!