CHINA STATE CONSTRUCTION INTERNATIONAL HOLDINGS LIMITED THE government has awarded a N$530-million contract to a Chinese state-owned construction company for a road in southern
Documents show the Roads Authority gave this contract to
The tender is for the construction of the road between Tses and Gochas.
This decision has irked some Namibian construction companies which were hoping to get part of the tender to keep jobs.
"The economy is struggling and we are still shipping out money," a source familiar with the construction sector said last week.
Other companies that bid for the contract were also mainly Chinese government-owned companies.
They include
Others bidders were
Roads Authority chief executive officer Conrad Lutombi yesterday confirmed 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," he said.
An open international bidding method, Lutombi said, allows any company, both international and local, to bid for a tender that is within their scope of expertise.
"The selected company met all the qualification criteria and was the bidder who scored the highest during evaluation, with the lowest rates," Lutombi said.
According to him, the tender award was as per the terms and conditions of the financing agreement between the Roads Authority and KfW of
"It is worthy to mention here too, that it is a requirement of the Roads Authority that awarded foreign contractors offer skills transfer to local SMEs during the construction of a particular project," he said.
"It is also a requirement 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 said.
He added Namibian companies in the construction industry will still be involved and will benefit from the project.
The Namibian has in the past reported that Chinese companies dumped their Namibian partners in road projects.
Lutombi said concerns that the Roads Authority is sideling local companies are unfounded and not factual.
"Where development partners are involved, the Roads Authority must comply with terms and conditions of the financing agent - especially on the international bidding requirement," he said.
Lutombi insisted that the Roads Authority made provision in the contract to ensure that Namibian contractors and SMEs benefit from the project.
"On this particular project, the contract awarded is N$530 million, and about 20% of that amount, N$120 million, will benefit local contractors and SMEs," he said.
This is not the only major contract that is going to
The Namibian reported in June this year that the Chinese state gave the Namibian government a list of five state-owned companies that should bid to expand the
Sources at the time said ambassador
Minister of finance Iipumbu Shiimi pleaded ignorance when asked about the contract in June this year.
He said he is not aware of the Chinese recommendations.
"Such details have not reached my office yet," he said.
Copyright The Namibian. Distributed by AllAfrica Global Media (allAfrica.com)., source
