Namibian agricultural project scaled down over escalating costs

The Tandjieskoppe green scheme project in Namibia has been scaled down by 240 hectares due to the rising cost of materials.

In 2004 the Government secured a N$360-million loan from the Arab Bank for Agricultural Development (BADEA), African Development Bank and OPEC to develop the 920-hectare project. The project will now operate on 720 hectares.

About 260 farmers in the Karas Region were supposed to be settled on two hectares of land each to grow dates, grapes and vegetables. The land was also to be used as collateral security for them to acquire loans from Agribank.

But due to the increase in cost of materials arising from massive construction in South Africa, which is preparing for the FIFA World Cup in 2010, the cost of the project has soared. Initially, the project cost N$360 million, an amount that has since risen to N$500 million.

An official the Ministry of Agriculture, Water and Forestry said the ministry advised that the project be scaled down to suit the available funds because the loan did not cater for the increases.

New Era