Despite let-downs, NamWater still works with local contractors
National water utility NamWater, which last week said it has been let down by numerous local companies contracted to its water projects, says it will continue to work with qualified local contractors.
The company emphasised that there should be no doubt about its commitment to operating in compliance with the Namibian Public Procurement Act (PPA), which prioritises Namibian businesses under specific conditions.
Namibian Sun last week quoted NamWater saying that the failure of local contractors to complete various water projects valued at N$315 million since 2021 has prompted its decision to consider more efficient international companies to do the job in some cases.
NamWater issued its statement following accusations by the Namibia Local Business Association (Naloba) that the national water utility favours international contractors when awarding water projects.
Maximising local benefits
The company, however, clarified that while it remains dedicated to empowering local contractors, large-scale projects funded through international agreements often require an Open International Bidding (OIB) process to ensure compliance with donor requirements and attract qualified bidders for complex works.
“A key example is the Ogongo-Oshakati water pipeline replacement project, which followed the OIB process as required by the financing agreement between the Government of Namibia and KfW Development Bank," NamWater spokesperson Lot Ndamanomhata said this week.
"This agreement mandates adherence to KfW procurement requirements alongside Namibia’s Public Procurement Act. The tender was open to both local and international bidders, based on technical and financial criteria. The selected contractors demonstrated the necessary capacity, expertise and ability to meet the project’s requirements and timelines," he explained, adding: "Nevertheless, even for internationally financed projects, NamWater remains committed to maximising local benefits".
Local expertise
In a statement yesterday, Ndamanomhata said NamWater encourages contractors awarded such tenders to employ Namibian labour and to subcontract to local businesses in order to ensure direct economic benefits to Namibian communities.
“This initiative underscores NamWater’s commitment to not only awarding projects to local contractors but also equipping them with the necessary knowledge and skills to compete effectively in future tenders.”
He highlighted examples that include joint ventures with Namibian majority ownership, such as the Collector 1-Schwarzekuppe-Swakopmund pipeline replacement and Outapi water treatment works extension, as well as fully Namibian-owned projects like the Omdel to Henties Bay pipeline replacement and Katima Mulilo raw water pipeline reroute.
NamWater emphasised its commitment to local empowerment by awarding several projects that include significant participation from Namibian contractors.
These projects include the Collector 1-Schwarzekuppe-Swakopmund pipeline replacement, where CK Heyd Civils cc (51% Namibian-owned) partnered with Unik Construction for a value of N$59.6 million.
Additionally, the Outapi water treatment works extension and the Ondangwa-Omutsegwonime pipeline replacement Phase 1 were awarded to Homefin Properties cc (51% Namibian-owned), in collaboration with China Jiangxi International, valued at N$141.8 million and N$91 million, respectively.
“While NamWater strongly supports local contractor participation, certain projects have experienced challenges. Such instances affect NamWater’s ability to deliver critical water infrastructure on time," Ndamanomhata said.
"These challenges do not mean NamWater is turning away from local contractors, but rather, it must ensure projects are awarded to companies – local or international – that can meet all requirements and deliver as expected,” he underlined.
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The company emphasised that there should be no doubt about its commitment to operating in compliance with the Namibian Public Procurement Act (PPA), which prioritises Namibian businesses under specific conditions.
Namibian Sun last week quoted NamWater saying that the failure of local contractors to complete various water projects valued at N$315 million since 2021 has prompted its decision to consider more efficient international companies to do the job in some cases.
NamWater issued its statement following accusations by the Namibia Local Business Association (Naloba) that the national water utility favours international contractors when awarding water projects.
Maximising local benefits
The company, however, clarified that while it remains dedicated to empowering local contractors, large-scale projects funded through international agreements often require an Open International Bidding (OIB) process to ensure compliance with donor requirements and attract qualified bidders for complex works.
“A key example is the Ogongo-Oshakati water pipeline replacement project, which followed the OIB process as required by the financing agreement between the Government of Namibia and KfW Development Bank," NamWater spokesperson Lot Ndamanomhata said this week.
"This agreement mandates adherence to KfW procurement requirements alongside Namibia’s Public Procurement Act. The tender was open to both local and international bidders, based on technical and financial criteria. The selected contractors demonstrated the necessary capacity, expertise and ability to meet the project’s requirements and timelines," he explained, adding: "Nevertheless, even for internationally financed projects, NamWater remains committed to maximising local benefits".
Local expertise
In a statement yesterday, Ndamanomhata said NamWater encourages contractors awarded such tenders to employ Namibian labour and to subcontract to local businesses in order to ensure direct economic benefits to Namibian communities.
“This initiative underscores NamWater’s commitment to not only awarding projects to local contractors but also equipping them with the necessary knowledge and skills to compete effectively in future tenders.”
He highlighted examples that include joint ventures with Namibian majority ownership, such as the Collector 1-Schwarzekuppe-Swakopmund pipeline replacement and Outapi water treatment works extension, as well as fully Namibian-owned projects like the Omdel to Henties Bay pipeline replacement and Katima Mulilo raw water pipeline reroute.
NamWater emphasised its commitment to local empowerment by awarding several projects that include significant participation from Namibian contractors.
These projects include the Collector 1-Schwarzekuppe-Swakopmund pipeline replacement, where CK Heyd Civils cc (51% Namibian-owned) partnered with Unik Construction for a value of N$59.6 million.
Additionally, the Outapi water treatment works extension and the Ondangwa-Omutsegwonime pipeline replacement Phase 1 were awarded to Homefin Properties cc (51% Namibian-owned), in collaboration with China Jiangxi International, valued at N$141.8 million and N$91 million, respectively.
“While NamWater strongly supports local contractor participation, certain projects have experienced challenges. Such instances affect NamWater’s ability to deliver critical water infrastructure on time," Ndamanomhata said.
"These challenges do not mean NamWater is turning away from local contractors, but rather, it must ensure projects are awarded to companies – local or international – that can meet all requirements and deliver as expected,” he underlined.
[email protected]
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