Government pivots on N$194m central medical store project

• The government received N$194m from the Global Fund to build a new medical store
• Tender was advertised and recommendations made, but that process was cancelled
• Health ministry has now opted to rent Ramatex for N$100 000 per month
• Bidders claim the tender was cancelled after the company tipped to win it lost out

The Global Fund is in talks with the Namibian government over its N$194 million donation that was meant to build a new central medical store but the Ministry of Health and Social Services has since redirected the money to lease the Ramatex Rhino Garments building.

The government abruptly halted a public tender process of constructing the new medical warehouse near Windhoek Central Hospital to rent a portion of the Ramatex premises at Otjomuise at a cost of N$100 000 a month.

Some bidders and government sources claim that this move has allegedly not been well received by the Global Fund, which had already approved architectural designs.

They question why the ministry would choose to rent instead of building its own modern facility, saying it makes little sense to commit to long-term rental costs when donor funds are available to construct a permanent structure.

Switzerland-based Global Fund spokesperson Ravini Senanayake confirmed to The Namibian last week that they are aware of the situation.

“In a nutshell, we are well aware of the situation and have been working closely with the government on it since late last year,” she said.

The fund, which is formally known as the Global Fund to Fight AIDS, Tuberculosis and Malaria, approved Namibia’s plan to build a new central medical store in Windhoek on the health ministry premises on open land located between Katutura and Windhoek Central Hospital.

Instead of building a new facility, the government has chosen to lease and renovate the old textile factory at Otjomuise to use as the central medical store.

This decision comes even though the construction tender was advertised on 24 October 2025, closed on 13 January 2026 and a bid evaluation report was completed.

“The directorate recommends that the Central Procurement Board of Namibia defer the awarding of the tender concerning the construction of the proposed central medical store and refurbishment of the existing warehouse,” director of health technology and infrastructure management Thomas Mbeeli says in a letter dated 23 February.

Mbeeli adds: “The total estimate for the central medical store is N$194 million whereas the Ramatex Garment Centre is estimated at N$108 million.”

Some industry players have anonymously complained that there was interference from health ministry officials and bidders after a certain company failed to win the bid.

“The Global Fund allocation under the Global Fund’s grant cycle 7 is dedicated to the development of the central medical stores and related equipment.

The funding will, therefore, be appropriated as per the grant condition in consultation with the Global Fund,” health ministry spokesperson Walters Kamaya told The Namibian yesterday.

Kamaya said the health ministry remains committed to developing a new central medical store.

The only change, Kamaya said, is that the ministry is pursuing the development to be undertaken at a different location, which does not have space constraints.

Ramatex Rhino Garments was identified as a potential site for the inception of the project.

However, at that point in time, the City of Windhoek had allocated the facility as the national emergency care centre.

“Due to non-compliance, the council resolution was rescinded and the facility became available for use,” Kamaya said, adding that the facility has existing infrastructure to enable internal upgrading and availability of power.

“The renovations, therefore, enable faster operational readiness to address the urgent needs of storage, security and availability of pharmaceuticals and medical commodities,” he said.

Kamaya denied political interference in the tender.

“The procurement for the central medical store has been undertaken by the Central Procurement Board of Namibia (CPBN), which appoints its own bid evaluation committee.

At the moment, the bid evaluation is ongoing and the board has not pronounced its notice of the decision,” he said.

Kamaya said the overall estimate for the new medical warehouse is estimated at N$194 million while that of Ramatex Rhino Garment is estimated at N$84 million.

“The rental for the facility, as per council resolution, is N$100 000 monthly.

The renovations ensure a rapid and reliable transition which is strategic and provides for an investment that maximises both national and donor resources,” he said.

Ramatex has over the years attracted big money offers.

Last year, the Windhoek municipality approved Rani Group, a Swapo donor, to lease part of the Ramatex Rhino Garments building for 25 years.

FORCED ON HOLD

CPBN acting spokesperson Abed Ashipala last week confirmed that the bid has been in compliance with the legal timelines and requirements of the bidding process.

“The board adjudicated on the bid evaluation committee report at its meeting of 26 February, and the results are still not for public consumption.

Once the process is finalised, the results will be communicated through a notice of selection of procurement award which will be published on the CPBN website,” he said.

CPBN denies political interference.

“The procurement process is being conducted under strict adherence to the provision of the Public Procurement Act, procurement regulations and the bidding document for this specific procurement,” said Abed.

CPBN confirms that the health ministry requested them to postpone awarding the tender.

“The ministry requested CPBN to defer the award of bid no.

W/ONB/CPBN-12/2025 until further notice, and CPBN continues to comply fully with the provisions of the Public Procurement Act,” Abed said.

BIDDERS

Some bidders say they were surprised to learn that the ministry now appears to favour renting the Ramatex Rhino Garments premises, despite the tender process for the construction project having already progressed to the bid-evaluation stage.

Several local and international construction companies have submitted bids for the project, with prices ranging from about N$174 million to over N$210 million.

The joint lowest bids with N$174 million came from Ongoma Trading Enterprise JV SCEGC and another company called Adaptive Building Land Construction JV China Civil Engineering.

Ongushe Investments JV Kunene River Construction Investment bid roughly N$175 million, while Oshilongo Investment JV One Centre Trading and New Era Investment JV Summit Trading both submitted bids of about N$177 million.

Other bidders included NGC Investment at around N$178 million, China Jiangxi International JV Sika Investment at roughly N$178 million, and Supeco Trading at about N$181 million.

Punchu Trading JV Unik Construction Engineering Namibia, which is known to have constructed Swapo’s headquarters, bid around N$184 million, while China Jiangsu International JV Optiver Trading came in at about N$185 million.

Higher bids were submitted by Vega Investment JV Heeno Tunga Investment at around N$189 million, ID Building Contractor at about N$191 million, Blueberg Trading Enterprise JV China Railway Seventh Group Namibia at roughly N$204 million, and Palladium Civil Engineering at around N$205 million.

Otesa Civil Engineering submitted a N$209 million bid, while the military-owned August 26 Construction asked for N$210 million.

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