Theme: Effective Stakeholders Relations Topic: Local Government Financing in Namibia ALAN 55 th Congress “Local Government Reform Towards Quality Service Delivery” July , Hilton Hotel, Windhoek

Utility companies are government- created and regulated monopolies. 2. Provide services that are consumed by the public and private sector. 3. Utility companies are managed through appointed board of directors. Utility Companies Bulk Supplier [e.g. NamPower] Distributor [e.g. REDs] Utility Company. Local Authorities Bulk Supplier [e.g. NamWater] Customer

Dynamics at 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.

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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