Hertta-Maria Amutenja
The Namibia Local Business Association (Naloba) says a recent government tender under the Transport Infrastructure Improvement Project (TIIP) Phase II could block local businesses from participating due to a high bid security requirement.
The tender, issued by the Ministry of Works and Transport on 15 April, is for the supply of 48 48kg/m rails and turnouts.
It forms part of the upgrade of railway lines between Otjiwarongo and Tsumeb and between Otavi and Grootfontein.
The project is funded by the African Development Bank (AfDB) and follows the bank’s 2015 procurement framework through the open competitive bidding (international) method.
Bidders are required to submit a bid security of N$33 million by 8 July at the ministry’s offices in Windhoek.
Naloba, which represents local entrepreneurs, says the security requirement is too high and discourages Namibian-owned companies from applying.
“Such security is too high for most locals, and it is limiting the participation. All businesses are tendering on their own regardless of membership; therefore, it is difficult to determine how many of them participated,” said Naloba spokesperson Marius Nangolo.
He said the financial burden is a barrier and called for a review of existing procurement laws to support local participation.
“The main challenges are laws that need to be changed to suit local participation in the economy,” Nangolo said.
He also questioned the role of financial institutions in helping businesses access capital.
“For instance, a higher bid security that exceeds what the locals can afford. Banks should secure suitable terms and conditions for tenders,” he added.
The ministry said payments under the contract will be made using the bank’s direct payment disbursement method, unless a letter of credit is specified.
Tender documents require disclosure of the successful bidder’s beneficial ownership as part of the bank’s transparency and accountability measures.
Interested bidders can get additional information from the ministry’s procurement management unit.
The project aims to modernise Namibia’s transport system and improve regional trade routes.
Improvement is achieved by addressing bottlenecks in railway transport infrastructure that hinder the efficient delivery of rail services.
