The local construction sector has expressed alarm at what it perceives as a lack of government support, once again levelling allegations of the continued favouring of foreign firms.
While recognising the potential of opportunities such as green hydrogen and oil and gas ventures, Bärbel Kirchner, the chief executive officer (CEO) of the Construction Industries Federation of Namibia (CIF), says the absence of robust government support renders these prospects “mere illusions”.
“There are many opportunities in the pipeline. However, if our government is not creating a clear precedent in supporting our industry, and if our government is not helping to maintain and build up our industry’s capacities, it is really all a farce,” she says.
She says the marginalisation of the construction sector from significant developmental projects has been an ongoing issue.
Kirchner’s remarks follow the recent awarding of the N$343 million Usakos-Karibib road rehabilitation tender to Chinese firm Zhong Mei Engineering, despite pushback by local contractors.
“The CIF is furious that the road upgrade project between Karibib and Usakos is going ahead. If there was sufficient will by our leadership, without any doubt, this entire project could have evolved very differently.
“The project could have been cancelled before the closure of the tender at pre-qualification stage,” she says.
Kirchner says the Roads Authority (RA) intentionally introduced new technical prerequisites for the project, aiming to create obstacles for local contractors to participate and excel in the tender.
Among these requirements were stipulations regarding asphalt volume and quantities of stabilised recycled subbase.
According to her, such requirements had never been deemed necessary before.
The Usakos-Karibib road rehabilitation project will be funded through a loan by Germany’s credit institute for reconstruction, KfW.
The RA says a quarter of the project’s scope, equating to N$63,8 million, has, however, been designated to Namibian subcontractors.
In addition, the RA highlights its projection of generating around 500 job opportunities for Namibians throughout the construction phase.
“The Roads Authority prides itself in the fact that 25% of the contract value is going to local subcontractors. It is ludicrous to think we may be satisfied with that when we could have had close to 100% of contract value going to our industry,” Kirchner says.
The quartet of local subcontractors includes Ino Investment Holdings CC, Tangeni OM Trading CC, West Trading CC and Alugodhi Trading CC.
Meanwhile, the CEO of the RA, Conrad Lutombi, says Zhong Mei Engineering secured the project following an openly conducted international bidding process.
“Hence, Zhong Mei Engineering Group has met all the specified requirements,” Lutombi says.
He says any aggrieved bidder may, however, still approach the review panel to seek recourse.
The commencement of the Usakos-Karibib road rehabilitation project is anticipated to kick off in September, with the targeted completion set for March 2025.
In June, Lutombi revealed that over the last five years, 571 out of 584 contracts awarded by the RA were awarded to local contractors.
In terms of monetary value, Lutombi said N$9,25 billion worth of roadworks have been executed by local contractors, while joint ventures between foreign and local contractors executed work worth N$5,7 billion, with N$2,6 billion paid to foreign-owned contractors.
He was responding to a letter by the CIF and the Metal and Allied Namibian Workers Union.
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