Right after Namibia became free, leaders thought about building a dam on the Fish River. The government waited until 2010 to finish studying whether this plan made sense. They figured it would cost about N$2.4 billion. The dam would water about 5,000 acres of land for growing fruits and vegetables.
The Italian company Salini ended up winning the job despite serious problems. This company faced accusations of wrongdoing across many countries, including Morocco, Jordan, Romania, and Italy. Italian officials investigated Salini in 2023 for rigging bids on another dam project. The company even admitted guilt in a corruption case back in 2006 for a water project in Lesotho.
Companies that lost the bid took the government to court, claiming unfair treatment. The highest-scoring company in the selection process was Vinci-Orascom, not Salini. Even though Vinci-Orascom had a strong legal case, they suddenly stopped their complaint when the court started looking at it. The third-place company kept fighting, and the High Court eventually ordered officials to look at the revised N$2.8 billion offer again.
Court papers revealed government officials hid information from the tender board. The officials never mentioned that outside experts recommended something completely different than what they suggested. The dam project finally started in 2014, but Salini immediately asked for an extra N$600 million because of court delays. The water company paid this money, raising the cost to N$3.4 billion.
By the time workers finished the dam in 2018, costs had more than doubled from the first estimate to N$5.7 billion. Everyone expected the dam would need two or three years to fill with water from the Fish River. However, heavy rains came early in 2019, filling the dam by January 19. Namibians celebrated as water spilled over the top.
Six years have passed since the dam filled up, yet nobody has grown anything there. No farming projects have started at all. The agriculture ministry should have received N$2.4 billion last year to build canals, pipes, and pump stations for the second phase. That money never came through. The total bill for taxpayers will reach at least N$8.1 billion when everything finishes.
The ministry admits they haven't even asked businesses if they want to invest in the project. Reports from 2022 suggest investors need to spend another N$3.8 billion before any crops can grow there. The government bought about 5,000 hectares of land around the dam, with 4,300 hectares planned for irrigation. They want investors to decide what to grow but expect mostly grapes and dates with some vegetables.
Table grapes might make the most money since Namibia can ship them to Europe for Christmas when other countries cannot. Namibia enjoys special trade deals with both the European Union and the United Kingdom. Farmers along the Orange River pay almost nothing for water except small permit fees from the agriculture ministry.
Farmers near the Orange River used 2,270 hectares last year to grow N$1.3 billion worth of grapes. Most shipments went to the Netherlands and the United Kingdom through Cape Town. Total production reached 42,000 tons of grapes. The industry created about 10,000 jobs counting both year-round and seasonal workers.
If farmers planted all 4,300 hectares near Neckartal Dam with grapes, they would wait several years before the vines were fully produced. Based on current prices, this could bring N$2.5 billion in exports and employ 20,000 people. These benefits probably won't happen before 2030, when grape vines reach full growth. Neckartal stands as the biggest dam in Namibia yet has remained unused for over six years.
The government hasn't even started studying phase two requirements or chosen someone to design the irrigation system yet. The agriculture ministry claims phase two will finish by 2026, with production starting around 2027. The failure to move forward quickly makes Neckartal Dam one of the most visible and expensive planning failures since Namibia became independent.
The Italian company Salini ended up winning the job despite serious problems. This company faced accusations of wrongdoing across many countries, including Morocco, Jordan, Romania, and Italy. Italian officials investigated Salini in 2023 for rigging bids on another dam project. The company even admitted guilt in a corruption case back in 2006 for a water project in Lesotho.
Companies that lost the bid took the government to court, claiming unfair treatment. The highest-scoring company in the selection process was Vinci-Orascom, not Salini. Even though Vinci-Orascom had a strong legal case, they suddenly stopped their complaint when the court started looking at it. The third-place company kept fighting, and the High Court eventually ordered officials to look at the revised N$2.8 billion offer again.
Court papers revealed government officials hid information from the tender board. The officials never mentioned that outside experts recommended something completely different than what they suggested. The dam project finally started in 2014, but Salini immediately asked for an extra N$600 million because of court delays. The water company paid this money, raising the cost to N$3.4 billion.
By the time workers finished the dam in 2018, costs had more than doubled from the first estimate to N$5.7 billion. Everyone expected the dam would need two or three years to fill with water from the Fish River. However, heavy rains came early in 2019, filling the dam by January 19. Namibians celebrated as water spilled over the top.
Six years have passed since the dam filled up, yet nobody has grown anything there. No farming projects have started at all. The agriculture ministry should have received N$2.4 billion last year to build canals, pipes, and pump stations for the second phase. That money never came through. The total bill for taxpayers will reach at least N$8.1 billion when everything finishes.
The ministry admits they haven't even asked businesses if they want to invest in the project. Reports from 2022 suggest investors need to spend another N$3.8 billion before any crops can grow there. The government bought about 5,000 hectares of land around the dam, with 4,300 hectares planned for irrigation. They want investors to decide what to grow but expect mostly grapes and dates with some vegetables.
Table grapes might make the most money since Namibia can ship them to Europe for Christmas when other countries cannot. Namibia enjoys special trade deals with both the European Union and the United Kingdom. Farmers along the Orange River pay almost nothing for water except small permit fees from the agriculture ministry.
Farmers near the Orange River used 2,270 hectares last year to grow N$1.3 billion worth of grapes. Most shipments went to the Netherlands and the United Kingdom through Cape Town. Total production reached 42,000 tons of grapes. The industry created about 10,000 jobs counting both year-round and seasonal workers.
If farmers planted all 4,300 hectares near Neckartal Dam with grapes, they would wait several years before the vines were fully produced. Based on current prices, this could bring N$2.5 billion in exports and employ 20,000 people. These benefits probably won't happen before 2030, when grape vines reach full growth. Neckartal stands as the biggest dam in Namibia yet has remained unused for over six years.
The government hasn't even started studying phase two requirements or chosen someone to design the irrigation system yet. The agriculture ministry claims phase two will finish by 2026, with production starting around 2027. The failure to move forward quickly makes Neckartal Dam one of the most visible and expensive planning failures since Namibia became independent.
