GRN expects to raise millions at new quota auction

Tujoromajo Kasuto

The Ministry of Finance (MoF) expects to make millions in a new round of governmental objective fishing quota auction for 392 metric ton (MT) Monk Freezer Fish.

MoF Spokesperson, Tonateni Shidhudhu, says the Monk specie is the last auction for this catching season and a successful auction, similar to last auctions for Hake and Horse Mackerel after the first unsuccessful attempt earlier this year, is expected. The auction, which is meant to raise revenue for Government expenditure with a deadline for 27 August, has set a minimum price of N$10,000 per metric ton.

According to the MoF, the bids will be placed on 392 metric ton (MT) of Monk Freezer Fish to the highest bidder, and Shidhudhu adds that the Monk specie is the last auction for this catching season. Bids according to the ministry, must be in multiples of 100 metric ton, and bidding entities should quote a price to the nearest two decimal places.

“Allotment of the bids will be determined by the Ministry of Finance as soon as possible following the closure time of the auction. Quota will be allocated to the highest bidders at their bid price, ascending from highest to lowest, until the full 392 MT have been allocated, or the reserve price has been reached,” a statement by Finance Ministry reads.

Bidders who submit bids below the lowest clearing price or the reserve price will be deemed unsuccessful. Should there be multiple bidders at the lowest clearing price, these bidders will receive a pro-rata allocation. The full auction results will be announced by end of September and the fishing period commences upon issuance of quota by the Minister of Fisheries and Marine Resources and ends on the 30th of April, 2022.

A total of N$189.9 million from the sale of 15,948 (MT) Hake that was held on the 16 April was raised, inclusive of N$40,000 raised from application fees. MoF and Ministry Fisheries and Marine Resources (MFMR) considered the Hake auction a success, as shown in improved prices from the reserve price of N$6,000 to N$11,745.90 for Wet Hake and N$8,000 to N$12,508.50 for Freezer Hake. Had those quota been disposed of at the reserve prices, the Government would have raised only N$102.3 million, compared to the actual outcome of N$189.9 million.

The auction had received a total of 38 bids, which consisted of 26 bids for Wet Hake and 12 bids for Freezer Hake. Nonetheless, after evaluating for compliance with the bid security deposit and bank guarantee requirements, only 23 bids complied. The overall demand at the auction was strong, with a total subscription of N$404.3 million. In terms of volume, a total of 46,858 MT was applied for, although only 15,020 MT were valid.


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