- The Namibian government has awarded a N$530-million contract to China Henan International Cooperation, a Chinese state-owned construction company for a road project in southern Namibia.
- The award of the tender to the Chinese company for the construction of the road between Tses and Gochas has upset some Namibian construction companies
The Namibian government has awarded a N$530-million contract to China Henan International Cooperation, a Chinese state-owned construction company for a road project in southern Namibia.
The award of the tender to the Chinese company for the construction of the road between Tses and Gochas has upset some Namibian construction companies which were hoping to get part of the tender to keep jobs. A spokesman of the construction sector lamented that while the economy was struggling the government was shipping out money. Most of the companies that bid for the contract was also mainly Chinese government-owned companies including China State Construction, Zhongmei Engineering Group, China Jiangxi International, China Geo-Engineering Corporation, Synohydro and Otjomuise JV, and Shanxi Mechanical JV.
Confirming the selection of China Henan International Cooperation Group Roads Authority chief executive officer Conrad Lutombi said that due to the nature, size, and complexity of this project, the procurement process was conducted through an open international bidding method in accordance with section 30 of the Public Procurement Act. Justifying the decision, he said that the selected company met all the qualification criteria and scored the highest during the evaluation, with the lowest rates.
According to him, as per the terms and conditions of the financing agreement between the Roads Authority and KfW of Germany the funding partner, it was agreed that procurement should involve open international bidding.
He added that it was agreed that foreign contractors offer skills transfer to local SMEs during the construction of a particular project, and that a certain percentage of the total contract amount is allocated to SMEs and subcontractors who are wholly owned and managed by Namibian citizens. He assured that Namibian companies in the construction industry will still be involved and will benefit from the project.
Out of the contract awarded worth N$530 million about 20% of that amount, N$120 million, will benefit local contractors and SMEs, he said.
