Chief Executive Officer of the Roads Authority, Conrad Lutombi talks about the current road projects in the country and the involvement of local contractors.
Observer Money (OM): Lately there were concerns about the lack of local involvement in road construction projects that are awarded to foreign companies. May you clarify, how involved are local companies in road projects carried out by the Roads Authority?
Conrad Lutombi (CL): The concerns about the lack of local involvement in road construction projects are unfounded and not factual.
To illustrate, the Roads Authority has embarked on 22 road construction projects in the five years past years, some are completed and some are still ongoing. Out of the 22 projects, 15 were awarded to local Namibian contractors, four to joint ventures between Namibian and foreign contractors and three were awarded to foreign contractors.
In addition, 141 Namibian SME Contractors were appointed to execute works under the main contractors. As with every other public enterprise, all Roads Authority procurement procedures are guided by the Public Procurement Act No 15 of 2015 of the Republic of Namibia. In cases where continental and international development partners are involved, the Roads Authority is usually required to harmonize the bidding documents comply with the terms and conditions of the financing agreements, especially with conditions on the international bidding requirements and bidder’s minimum technical specifications.
Due to the nature, size and complexity of some of our road projects, the procurement process is conducted through an Open International Bidding method in accordance with section 30 of the Public Procurement Act, 15 of 2015. An Open International Bidding method allows any company both international and local to competitively bid for a tender that is within their area and scope of expertise.
It is a requirement of the Roads Authority that appointed foreign contractors offer skills transfer to local contractors/SME’s during the construction of any project. Thus, Namibian companies in the construction industry are involved and benefit (technically and financially) from road projects that are awarded to foreign contractors.
For bigger capital projects, the Roads Authority advocates for the awarding of road projects to joint ventures between well-established Namibian and International road contractor companies, primarily on the premise of skills transfer, capacity building and growing the Namibian road construction industry. These Joint Ventures between well-established Namibian and International road contractors further ensures that various local SMEs are subcontracted to participate in different types and forms of works on construction sites, depending on their areas of expertise.
(OM): In terms of road construction, what is the capacity of local companies to undertake such projects?
(CL): The Roads Authority takes pride in being one of the leading organizations with regards to SME development in the road construction industry. Many successful Namibian Contractors have graduated from being SME Contractors to main contractors after undergoing the Roads Authority SME training programme.
Thus, various local Namibian contractors have over the years gained the capacity (both technical and financial capacity) to undertake some road projects to a certain degree, based on the nature, size and complexity of the required works at hand. It is also important to highlight that the majority of our road maintenance contracts (approximately 98%) are executed by Namibian contractors.
In addition, some of our major projects like the first road (Namalubi-Isize-Luhonono) which was constructed in the flood plains of Namibia in the Zambezi Region was successfully completed by a wholly owned Namibian Contractor.
However, due to the complex and high technical and financial nature of the works on some capital projects, local companies might lack the capacity to single handedly carry out the project from commencement to completion. That therefore is among the reasons why the Roads Authority advocates for joint ventures on such projects.
(OM): What are some of the major road works being carried out by the Roads Authority at the moment?
(CL): The Roads Authority is currently busy with the following capital projects:
Gobabis – Aminius – Aranos road upgrade to bitumen standards, (Section B, between Onderombapa and Aranos), Omaheke and Hardap Regions.
Swakopmund – Henties Bay – Uis – Kamanjab road upgrade (Phase I, Section B between Henties Bay and Uis), Erongo Region.
Windhoek-Hosea Kutako International Airport road upgrade to dual carriageway (Phase 2, Section 2A between Sam Nujoma Interchange and Dordabis Interchange), Khomas Region.
Windhoek-Hosea Kutako International Airport road upgrade to dual carriageway (Phase 2, Section 2B between Dordabis Interchange and Hosea Kutako International Airport), Khomas Region.
Windhoek-Okahandja road upgrade to dual carriageway (Section 4A Extension (Dual Carriage-Freeway) (from Omakunde Interchange to Otjiwarongo Interchange), Otjozondjupa Region.
Swakopmund – Walvis Bay road upgrade to dual carriageway, Phase 1 Extension (Behind the Dune 7 and Main Road 36), Erongo Region.
Windhoek-Hosea Kutako International Airport road upgrade to dual carriageway (: Southern link to the Windhoek – Rehoboth police Road Block), Khomas Region.
Swakopmund – Henties Bay – Uis – Kamanjab road upgrade to bitumen standards (Phase II, Section A between Kamanjab and Khorixas), Erongo & Kunene Regions.
(OM): Namibia is ranked as one of the countries having the best roads in Africa, what is the secret behind this?
(CL): The Roads Authority is proud to carry the flag of excellence on the continent, in terms of road infrastructure. Our success is attributed to four important factors namely our effective and robust maintenance strategy on existing road infrastructure (such as rehabilitation, reseal, re-gravelling, blading and roving betterment), which plays a pivotal role in prolonging the roads life span, road preservation through our overload control strategy, ensuring that heavy vehicles are within the permissible weight limits to minimize damage on our road network, the uncompromising supervision on our projects that ensures that the set quality standards are maintained and lastly our focused and tested leadership which ensures that we comply to corporate governance as we continue to carry out our mandate effectively and efficiently.
(OM): How will Namibia continue to maintain a good road network?
(CL): In term of the Roads Authority, our five-year Strategic Plan will be our blueprint to maintain a good road network. Our strategic goals for the next five years are to maintain good corporate governance, enhance innovation, create high performance culture, enhance financial optimisation, ensure availability of core infrastructure and services, manage traffic and transport operations, avail and preserve national road network and ensure stakeholder satisfaction.
The strategic plan also provides a change and modernization agenda for the Roads Authority. This includes attitude and cultural change, a relentless focus on delivery priorities and ensuring that foundational drivers such as human resources management and corporate performance management are in place.
(OM): The Road Authority’s Integrated Strategic Business Plan (ISBP) for the 2022/23 to 2026/27 period includes some N$15 billion in projects, how will this be funded?
(CL): The Roads Authority is a non-profit making organization which is funded by the Government of the Republic of Namibia (State Revenue Fund, Parliamentary Appropriation), the Road Fund Administration (through road user charges that is fuel levies, vehicle licenses, abnormal permits and mass distance charges) as well as through grants and donor entities. Thus, the funding of the projects will be done by these entities.
The Roads Authority will have synergistic collaboration and support from all strategic partners to enable this strategic plan to be successful and to yield the fruits of our collected efforts. As a long standing norm and practice, Roads Authority will continue to hold annual budget consultations and engagements with key stakeholders in order optimum budget and financial requirements to fulfil the goals and targets as defined in the strategic plan.
It should be emphasized that the strategic plan is a living and dynamic document, meaning changes may be incorporated into the plan according to changing macro socio-economic, organizational and national priority dynamics.
