FIVE Chinese state-owned companies dominate a shortlist of nine firms bidding for two Namibian railway construction tenders worth N$2,4 billion.
The tenders are set to be awarded this month.
They are for upgrading two sections of the Walvis Bay-Kranzberg railway line [between Usakos and Karibib], and are partly funded from a N$10 billion government loan from the African Development Bank.
The N$2,4 billion is part of the N$3,3 billion that the government plans to spend on that coastal railway line.
These rail tenders, however, appear to attract controversy.
A N$640 million contract to supply rails for the route was earlier this year awarded to a Chinese state company that was banned by the World Bank for tender fraud in the Philippines.
Documents seen by The Namibian show that five of the short-listed firms are Chinese state-owned China Jiangxi International, China Henan International, China Civil Engineering Construction, China Harbour Engineering Company and the China Gezhouba Group.
There are two other Chinese private firms which are also in the running through consortiums.
Documents seen by The Namibian show that some transport ministry officials are in favour of recommending China Harbour Engineering and its local empowerment partner, Roadhart CC, to upgrade the railway line for N$1,2 billion.
It was not immediately clear who owns Roadhart CC, but the company is linked to a well-known tender dealer.
China Harbour Engineering Company has over the years benefited from Namibia’s tender boom.
The company constructed the N$7 billion fuel storage facility and the N$3 billion Walvis Bay port expansion that was paid through another loan from the African Development Bank.
JDC Consortium, a partnership of China Jiangxi International, Namibian outfit D&M Rail and China Henan International, is tipped to win the other railway construction tender for the Walvis Bay to Kranzberg line for N$1,2 billion.
D&M Rail is owned by justice minister Sacky Shanghala’s friend and business partner, James Hatuikulipi, as well as John Walenga, among others.
D&M Rail has over the years faced allegations of being favoured in the awarding of tenders at TransNamib. The company denied any wrongdoing.
The director for railways in the transport ministry, Robert Kalomoh, told The Namibian yesterday that speculation on who will win the tenders is far-fetched.
“That’s a total lie, my friend,” he said, adding that the process has not yet been completed.
According to him, the ministry is set to complete its evaluation report next week, which they will then send to the African Development Bank.
Kalomoh insisted that the decision or recommendation by the transport ministry is not final, and the bank could advise to opt for another company.
He said nine companies out of the initial list of 21 were shortlisted. One of the nine companies opted out, he said.
Kalomoh denied suggestions that the bids are inflated.
News about the tenders come at a time when officials are questioning why the same group of Namibian companies are benefiting from the railway deals at the transport ministry and the state-owned TransNamib.
This is after an outcry late last year when the tender was cancelled to accommodate Namibians because the initial terms of the tender appeared to exclude local participation.
The Namibian understands that BigenKuumba, a firm co-owned by businessman Titus Nekuumba, was appointed by the government as consulting engineers [principal agent].
Documents seen by The Namibian show that the tender to supply rails for the project was awarded to a Chinese company which was banned by the World Bank for alleged fraud in the Philippines.
China Communications Construction Company and a company owned by Vaino Nghipondoka were awarded the N$640 million rail supply tender for the Walvis Bay-Kranzberg line upgrades.
China Communications Construction Company is highly regarded in China in terms of financial clout, but is in trouble with the World Bank.
In 2011, the World Bank announced a ban on China Communications Construction Company on its website. This ban covered all the company’s subsidiaries for what the bank termed “fraudulent practices” in a Philippines national roads project.
China Communications chairman Liu Qitao denied allegations of corruption implicating his company in an interview with international media house Bloomberg.
In an age of information overload, Sunrise is The Namibian’s morning briefing, delivered at 6h00 from Monday to Friday. It offers a curated rundown of the most important stories from the past 24 hours – occasionally with a light, witty touch. It’s an essential way to stay informed. Subscribe and join our newsletter community.
The Namibian uses AI tools to assist with improved quality, accuracy and efficiency, while maintaining editorial oversight and journalistic integrity.
Stay informed with The Namibian – your source for credible journalism. Get in-depth reporting and opinions for
only N$85 a month. Invest in journalism, invest in democracy –
Subscribe Now!
