The electrification project at Onawa reception area extensions seven and eight have commenced following a groundbreaking ceremony.
The new development will cover 770 erven.
In its five-year strategic plan, the Oshakati Town Council plans to formalise all informal settlements to provide basic services such as water, sewerage, and electricity.
The electrification of Onawa will cost the council N$11.5 million.
"As we break the ground today, let us remember that this is not just a symbolic act but a promise fulfilled. A promise to uplift our town and its people. Let us embrace this opportunity and work towards a future where every home is illuminated," said Oshakati Mayor Leonard Hango.
The project is being implemented by Oshakati Premier Electric (OPE).
"Why do we call it a win-win situation in this partnership? OTC receives loyalty and interest investment in the form of dividends from OPE, and over the years since 2016, we have seen re-investment of some of these funds in growing the company," said OPE CEO Nelson Sheya.
While applauding the Oshakati Town Council and Oshakati Premier Electric for the project, Urban and Rural Development Minister Erastus Uutoni called on the Electricity Control Board to consider minimising the tariffs.
The formalisation process by the Oshakati Town Council started with the Eemwandi location in 2019, followed by the Sky, Kalaula, Oshimbangu, and Oshoopala relocations, which started last year.
It also inaugurated the Oshakati fire station at Ehenye, which was constructed for N$8.8 million, and the Oshakati landfill site for N$6.5 million.