NORED still challenged to invest in infrastructure development: Nakashole

04 Sep 2019 08:40am
RUNDU, 04 SEP (NAMPA) – The Northern Regional Electricity Distributor (NORED) is still challenged to invest in infrastructure development due to vastness of its area of operation, a challenge that is compounded by limited financial resources and a high demand for electricity.
This was said by NORED Chief Executive Officer, Fillemon Nakashole, at a Public Infrastructure Funding conference at Rundu on Tuesday.
The conference is aimed at affording the financial and capital markets an opportunity to present product solutions which are affordable and sustainable to NORED’s key stakeholders in order to boost the socio-economic development in these areas.
“The funding for NORED's operations and electrification projects has been depending on the tariffs and profits accumulated over the years,” Nakashole.
The CEO said this method of funding, despite being self-reliant, is slow in that some important projects have to be postponed to allow for the availability of funds.
NORED, he said, has realised that consistency in following this trend will cripple development and the attainment of its mandate.
“Another critical issue I would like to draw your attention to is the monthly surcharge payment to regional and local authority councils,” he said.
The CEO explained that currently, NORED pays a monthly surcharge averaging N.dollars 1.8 million towards respective towns and regions, but that however, the towns and regions are not leveraging on the opportunity to reinvest back into electricity infrastructure.
This, he added, could eventually boost the economic development of the towns and regions.
Nakashole said financial innovation solutions are required to supplement the annual N.dollars 10 million on Corporate Social Responsibility electrification funding in order to enhance the creation of more assets and accelerate development.
Conferences such as these, he added, are part of a collaborative effort in the mission to deepen insights into understanding the importance of electricity infrastructure investment.
“I hope that the next two days will offer great insights, expanded knowledge and will spark beneficial conversations on the theme and topic of the conference,” he stressed.
The theme of the conference is “Enhance and sustain socio-economic development through an accelerated public infrastructure investment intervention.”