Plans for establishing the ||AU-OB Electricity Distribution Company for the Hardap and ||Kharas regions have faced a setback, as the government has stated that it was not informed about or consulted on the formation of the mentioned company.

The Minister of Urban and Rural Development, Erastus Uutoni, in a letter to Gershon Dausab, Chairperson of the Hardap Regional Council, says his ministry had not been informed nor consulted regarding the intentions to establish the ||AU-OB Electricity Distribution Company.

He reiterated that his ministry was solely committed to supporting the establishment of the Southern Regional Electricity Distributor, in which NamPower is a participant.

The minister's statement follows an invitation from Dausab to regional and local authorities in the Hardap and ||Kharas for a meeting aimed at signing the shareholder agreement of the ||AU-OB Electricity Distribution Company.

In his letter, Uutoni also says he is not aware of the amended shareholding agreement that referred to the company as ||AU-OB Electricity Distributing Company.

The minister reminded the involved regional and local councils that, until now, his ministry had only been in consultation with the Ministry of Mines and Energy regarding the formation of SORED.

Uutoni mentioned that the SORED shareholding agreement, which underwent legal examination, had received approval from the Attorney General's Office.

Dausab, who, along with Joseph Isaack, Chairperson of the ||Kharas Regional Council, leads the formation of the ||AU-OB Electricity Distributing Company, expressed his intention to engage with Minister Uutoni concerning his assertions about the latter company.

Dausab would not comment on whether the amended shareholders' agreement in question has been endorsed by the shareholders.