Hangala back in the running for NamPower tender

SONJA SMITHA COMPANY co-owned by Namibia Airports Company chairperson Leake Hangala has been put back in the running for a N$600 million NamPower tender, despite a bid evaluation committee decision that the contract must be given to one of two rival companies.

This comes after NamPower indicated to Siemens and Alstom Grid SAS Solutions JV Radial Truss Industries that the original tender will now be cancelled and re-advertised with different specifications.

Conco Namibia is a South African-based company in which local businessman Hangala, who is a former NamPower managing director, owns a 20% stake.

The company won the tender in 2016 ahead of Siemens and Alstom Grid SAS Solutions JV Radial Truss Industries (Pty) Ltd.

reported in March this year that the Central Procurement Board (CPB) had ruled that awarding a tender to construct the Masivi-Shiyambe and the Kunene-Omatando substations to Conco Namibia by NamPower poses significant risks that could result in substandard work.

NamPower managing director Simson Haulofu confirmed to The Namibian on Thursday that the tender had been cancelled.

“The bid for the construction of the 400 kV extension of the Kunene and Omatando substations was cancelled by the CPB.

“It will be re-advertised as soon as practically possible. The bid is being administered by CPB. Try to approach CPB to obtain the timelines for this bid,” he said.

Haulofu added that the requirements and scope will have improvements on substation layouts. He, however, stated that the cost for the Kunene and Omatando extensions were never estimated at N$600 million as the project consist of different phases, with the engineering, procurement and construction (EPC) contract being only one of them.

“The project also consists of the procurement of power transformers, protection automation and control schemes, substation platforms and access roads, and the construction of the power line. Most of these phases are already completed,” Haulofu explained.

The report from the bid evaluation committee (BEC), in possession of The Namibian, said Conco’s bid was not responsive, and it deviated from the provisions of the requirements referenced in the tender.

Conco tendered for N$231 million, Siemens for N$496 million, and Alstom Grid SAS Solutions JV Radial Truss Industries (Pty) Ltd submitted a bid for N$449 million.

The evaluation committee said Conco’s rate for the design and records was too low for the project, and could result in the use of substandard materials.

For example, Conco quoted for only 3 x 400kV isolators and 4 x 132kV isolators, compared to Siemens which quoted for 26 x 400kV isolators and 19 x 132kV isolators.

Conco also quoted for 14 x 400kV pantographs, while Siemens quoted for 51 x 400kV. The other aspect was that Conco listed very few single-line diagrams in the technical drawings, as required by the tender.

“For the supply, delivery, installation, testing and commissioning, the other bidders priced almost double what Conco offered. In other words, Conco’s price is nearly half of what the other two bidders quoted,” the report stated.

The evaluation committee concluded that any bidder who excludes a part of what is needed might be rejected as being non-responsive.

“It is important to note that while Siemens and Alstom JV are original equipment manufacturers, Conco is only a contractor. It is quite worrisome that the supply cost for the same equipment is lower than the price of the equipment offered by the manufacturers,” the BEC’s report stressed.

The BEC said Conco had also modified their bid bond.

A bid bond is a debt secured by a bidder for a construction job, or similar type of bid-based selection process, to provide a guarantee to the project owner that the bidder will take on the job if selected.

CPB chairperson Patrick Swartz confirmed the board had resolved to cancel the bid as per Section 54 (1) (b) (f) of the Public Procurement Act.

“In terms of the new requirements, NamPower has communicated to the CBP through an individual procurement plan, and the board adjudicated on the matter on 20 June 2019,” he said.

In an interview with , Hangala said his company will wait for the new requirements.

“It will be premature to say now, but I will wait until the tender is re-advertised, then we will see. We do not know what their terms and conditions will be this time around.

In late 2016, the previous NamPower board headed by Maria Nakale-Gaomas blocked Conco from getting the tender, citing conflict of interest.

This was after the parastatal’s former senior manager of project management and implementation, Jurgen Senke, resigned in September 2016, and joined Conco. Senke, who had been with NamPower since February 2005, joined Conco when the tenders were being evaluated. At NamPower, Senke was responsible for the preparation of tender documents for the transmission projects, and the administration of the Omatando tender.

The bid evaluation committee was appointed on 29 June 2018 in terms of Section 26 of the Public Procurement Act to examine and evaluate the bidding process in the Kunene-Omatando substations’ tender.

The appointment of the evaluation committee follows a Windhoek High Court order of 6 December 2017, which directed the CPB to adjudicate all bids.