NamWater and Swakop Uranium have signed a joint-venture agreement to develop a new large-scale desalination plant in the Erongo Region.

The desalination plant is aimed at strengthening the country's long-term water security and supporting industrial growth.

Signed in Windhoek, the partnership, named the Erongo Sunam Desalination Project Joint Venture, will see Swakop Uranium hold a 70% stake while NamWater holds 30%.

According to the parties, the shareholding reflects investment contributions and operational responsibilities, with NamWater ensuring public-sector oversight and integration into the national bulk-water network.

The project includes the construction of a modern seawater desalination plant, upgrades to bulk water pipelines and pumping systems and long-term operation and maintenance arrangements.

The facility will supply water to industrial, commercial and domestic users in the Erongo Region, one of the country's most water-stressed yet economically active areas.

NamWater's Chief Executive Officer (CEO) Abraham Nehemia said the agreement follows the successful completion of technical, commercial and governance approvals.

He said the new joint-venture company will now be registered, after which detailed engineering design, environmental assessments, financing and construction planning will commence.

Nehemiah added that the plant is expected to ease pressure on existing coastal water sources, including groundwater aquifers and the privately owned Orano Desalination Plant.

Commissioned in 2010, Orano Desalination has served as the primary desalinated water supplier for coastal towns and nearby mines for years.

Originally built to support the Trekkopje Uranium mine, it has become a critical regional water source, but its capacity is no longer sufficient to meet rising industrial and domestic demand.