Construction federation accuses NamWater of poor procurement practices

The Construction Industries Federation (CIF) has criticised the Namibia Water Corporation (NamWater) for its procurement practices, CIF accuses the national water utility of undermining local contractors in favour of foreign firms.

This comes after NamWater defended its decision to re-award five tenders worth approximately N$315 million to foreign contractors.
The utility argued that local companies failed to meet performance expectations, citing issues such as poor workmanship, project delays and abandonment.

However, CIF chief executive Bärbel Kirchner yesterday dismissed these claims, saying NamWater’s procurement process was flawed.

“While they place blanket blame on ‘local contractors’ without differentiation and without being transparent about which contractor they are referring to, the underlying problem most likely lies in poor procurement and selection processes by the authority,” Kirchner said.

Kirchner said, generally, misalignment between project scopes and the capacities of contractors can lead to suboptimal outcomes.

However, she said this should not serve as a justification for the further increasing preference for foreign contractors.

“On the contrary, it is critical that before adjudication and award of tender, there is a clear understanding of actual capacity of the contractor, i.e., the level of experience of the considered manpower, the financial capacity as well as the availability of plant and machinery,” Kirchner said.

The CIF wants a differentiation to be made as many unregulated contractors do not have the expertise for projects that are beyond their scope, especially if they lack technical as well as management experience and have no plant and machinery.

“Many lack the experience and know-how to do proper estimations, and who then rely on old estimates, which are hopelessly incorrect. Despite that, they are often also leaked and many of the inexperienced contractors price accordingly.

The consequence is that they mostly underprice, leaving them zero chance of success,” Kirchner said.

The federation further called on NamWater and other public entities to be transparent in their contractor selection processes and criteria, particularly how they assess contractor capabilities and project alignment.

It also reiterated its call for the establishment of a construction council in Namibia.

Last week, NamWater spokesperson Lot Ndamanomhata said local contractors are given preference wherever they meet the required technical and financial criteria for project execution.

“However, for certain large-scale or highly specialised projects, international expertise may be necessary to meet technical requirements. In such cases, NamWater ensures knowledge transfer and collaboration with local partners to build national capacity,” Ndamanomhata said.

He said the five projects, valued at approximately N$315 million, highlight the real challenges that have hindered NamWater’s ability to deliver water infrastructure projects on time and within budget.

The five projects are the Omahenene – Olushandja canal reconstruction: part A and B, Goblenz reservoir replacement, Opuwo boreholes drilling and the Naute – Keetmanshoop pipeline replacement.

“Additionally, several other locally awarded projects are significantly behind schedule, further impacting our operations and ability to meet water supply demands,” Ndamanomhata said.