Construction federation cautions Govt against handpicking RCC tenders

The Construction Industries Federation of Namibia (CIF) has warned that the Roads Contractor Company (RCC) model sidelines Namibian contractors.

In a media release on Wednesday, CIF chief executive Bärbel Kirchner said the rules introduced in a recent RCC expression of interest will prevent Namibian companies from competing.

“CIF notes that contractors who should ordinarily qualify, based on their technical capacity and experience, are still excluded by financial requirements that are not aligned with the realities of the Namibian construction sector,” Kirchner said.

The expression of interest introduces categories for contractors, with financial rules forcing contractors to have the ability to provide or secure their own financing.

“CIF is particularly concerned that this approach may favour foreign-linked companies with access to lower-cost or state-backed financing, thereby creating an uneven playing field for Namibian contractors,” Kirchner said.

In addition, CIF raised concerns about the number of government projects allocated to the RCC. If the model of construction contracting is that government projects are directed through the RCC, the restrictive financial rules will damage competition and market access, Kirchner said.

“This creates a clear disconnect between the stated intention to support Namibian contractors and the actual conditions being created in the market,” Kirchner said.

The federation has been in formal communication with the government and the RCC, requesting a review of the contracting approach.

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