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NAC to pump N$118 million into airport facelifts

The Namibia Airports Company (NAC) plans to invest at least N$118 million to improve airport infrastructure in line with the government’s national development initiatives to harness the natural resources brought about by the recent oil and gas discoveries and the green hydrogen initiatives.

This was said in a statement issued by NAC spokesperson Dan Kamati following an annual general meeting covering three financial years that was held on Wednesday.

“The envisaged infrastructure developments include Hosea Kutako International Airport project to extend the VIP/VVIP facilities to alleviate congestion in the Presidential Lounge, as well as parking configuration at a cost of N$18 million,” Kamati said in the statement.

The company will also undertake the expansion of the apron at Hosea Kutako International Airport at a cost of N$100 million, funded by the government over a two-year period, said Kamati.

He said discussions with the government are in progress to determine the optimal financing structure for the construction of Terminal 3 at Hosea Kutako International Airport, with the construction of new terminal buildings at Katima Mulilo, Rundu and Lüderitz airports also in the pipeline.

The meeting was also attended by works and transport minister John Mutorwa, executive director of finance and public enterprises Titus Ndove and covered the 2019/2020, 2020/2021 and 2021/2022 financial years, bringing NAC in compliance with requirements of the Companies Act and the Public Enterprises Governance Act.

The auditors provided an unqualified opinion on the audited consolidated financial statements – a significant transition from the qualified opinion given for the 2019/2020 financial year, mainly attributed to impairment of property, plant and equipment (PPE), review of useful lives and residual values of items in PPE and turnover-based revenue and concessions.

“The reports presented by NAC provide a realistic reflection of the transitional journey of the NAC. They represent visible and concrete improvements in leadership, management and governance,” said Mutorwa.

NAC board chairperson Leake Hangala said the company had made significant progress in stabilising operations, which are currently at about 78% of pre-Covid levels.

“Thanks to the shareholder for the support, confidence and trust shown to the board and management. We have achieved the development of the integrated strategic business plan, finalisation of the three years’ AFS (audited financial statements), submission to and approval by the shareholder of the company’s budget and business plan for 2022/2023, infrastructural and service improvements at the airports, spearheading aviation connectivity initiative as well as the introduction of stringent cost-cutting measures that led to the current and improved financial performance and standing of the company,” Hangala said.

Ndove said the ministry was happy with NAC’s improved performance in financial operations, leadership, governance and compliance.

“As the shareholder, we are in support of the presented strategic initiatives and will continue to support NAC to mobilise the necessary resources for the successful implementation of the infrastructural improvements at its various airports,” Ndove stated.

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