Martin Endjala
The Construction Industries Federation of Namibia (CIF) has criticised NamWater for its practices of empowering foreign companies over local contractors.
It demanded a level playing field to suit local contractors.
Last week, the Namibia Local Business Association (NALOBA), released a statement in which the association accused NamWater of sidelining local contractors over foreign contractors.
NamWter justified its decision by citing performance issues, such as alleged poor workmanship, non-completion, and project abandonment.
About five projects valued at N$315 million are said to be incomplete.
The chief executive officer of CIF, Barbel Kirchner, in response on Thursday, stated that NamWater blames local contractors without differentiation and without being transparent about which contractor they are referring to.
She said the underlying problem most likely lies in the NamWater’s poor procurement and selection processes.
“Generally, misalignment between project scopes and a contractor’s’ capacities can lead to suboptimal outcomes. This should not justify the ever-increasing preference for foreign contractors,” she said.
She added that on the contrary, it is critical that before the tender is adjudicated and awarded, there is a clear understanding of the contractor’s actual capacity.
She said the ongoing practice of NamWater and some other public entities of sidelining capable local contractors continues to undermine the local construction industry.
She added that such actions contravene the national objectives of promoting local entrepreneurship and job creation and highlight significant failures in the current procurement and contractor selection processes.
“NamWater’s inclination to outsource contracts to foreign entities is alarming and contradicts the government of Namibia’s directives and CIF’s advocacy for local content enhancement,” she said.
She urged NamWater and other public enterprises to commit to local contractors, who can deliver quality work within the required parameters.
The CIF is demanding the reform of procurement processes to ensure fair competition and provide equitable opportunities for local contractors and other local businesses.
By aligning project requirements with the real capabilities of Namibian businesses and removing biases that favour foreign companies.
She also demands transparent selection criteria from NamWater and other public entities, particularly how they assess contractor capabilities and project alignment.
Meanwhile, on Wednesday, NamWater’s head of public relations, Lot Ndamanomhata, clarified that despite internationally financed projects, NamWater remains committed to maximising local benefits.
“Contractors awarded such tenders must employ Namibian labour and subcontract to local businesses, ensuring direct economic benefits to Namibian communities,” he said.
He said the utility operates under Namibia’s Public Procurement Act (PPA), which allows for preferential treatment of Namibian businesses under specific conditions.
“Our procurement processes are designed to be transparent and fair, ensuring that local contractors are prioritised wherever they meet the required technical and financial criteria,” he explained.
He explained that large-scale projects funded through international agreements often require Open International Bidding (OIB) to ensure compliance with donor requirements and attract qualified bidders for complex works.
