Justicia Shipena
Preferred Land Development Holdings (Pty) Ltd (PLDH) has taken the government to court challenging a decision over road planning that affects its Osona Village development near Okahandja.
The matter is before the High Court in Windhoek, where the company is seeking to have a decision to proclaim two district roads with a 30-metre road reserve reviewed and set aside.
PLDH says the decision is unlawful and goes against earlier agreements.
The minister of works and transport, the roads board for Otjozondjupa South, the Roads Authority, the Municipal Council of Okahandja and Osona Property Management Company are respondents.
Osona Village is a large housing development built on about 1,100 hectares of land acquired in 2013.
The project includes multiple townships, with at least sixteen planned and proclaimed between 2016 and 2023.
PLDH says its development plans were based on road designs provided by the Roads Authority, which showed internal roads would have a 30-metre reserve.
These roads were meant to serve as part of the township.
In 2020, the Roads Authority decided to upgrade one of the roads into a district road and increased the road reserve to 60 metres.
Court documents filed show the company was not informed at the time, even though development had already progressed.
PLDH says the change affects the project. Land within a road reserve cannot be developed, which reduces usable land and increases costs. It also affects approved layouts.
The company says it became aware of the change in 2022 when the Roads Authority entered the land and began clearing and levelling work.
It says this disturbed survey beacons and raised concerns about the legality of the actions.
After this, the parties held discussions and reached a memorandum of agreement in 2023.
The agreement allowed for a 60-metre road reserve and PLDH withdrew its earlier objections.
The Roads Authority continued planning based on the 60-metre reserve.
The Valuer-General began assessing compensation, and further design work continued during 2024.
In October 2025, the minister issued a proclamation setting the road reserve at 30 metres instead of 60 metres.
PLDH says this decision contradicts the agreement and ignores earlier planning and negotiations.
The company is asking the court to declare the decision invalid and unconstitutional.
It says the process was not fair and did not consider the impact on the development.
PLDH also wants all related decisions and steps set aside, including recommendations made by the Roads Board.
