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Prime minister Elijah Ngurare has revealed that the government has rejected a proposal by a state-owned entity to build stadiums at a cost of N$54 million each, describing the price as excessively high.

The entity initially accepted an offer of N$15 million per stadium, but later revised its proposal after partnering with a foreign-owned company registered in Namibia.

Although he declined to name the entity during his address, it is understood that the government had tasked the Roads Contractor Company (RCC) with constructing sport facilities across the country’s 121 constituencies.

Speaking during a business engagement session at Oshakati on Friday, Ngurare questioned the sharp increase in costs.
“The next thing we saw, the same state-owned entity partnered with a Chinese company and came back saying one stadium would cost N$54 million.

How can we pay that? It’s difficult. From N$15 million to N$54 million – at least N$15 million was manageable,” he said.

He said the government maintained its original budget in an effort to ensure all constituencies benefit from the project.

“If there are people who can construct for N$15 million, then let’s proceed with that, because our focus is to deliver these facilities in all 121 constituencies,” Ngurare said.

He emphasised that the initial allocation was based on affordability and equitable distribution of development projects.
“Our budget was N$15 million per constituency.

But N$54 million is far too high. N$54 million for what? That is the challenge we have,” he said.

Ngurare highlighted broader concerns about inefficiencies in public spending, suggesting that bureaucratic delays and inflated costs were hindering development.

“When our president says our problem is not money, she is not wrong.
“The money is there.

As I said, N$8 billion was meant to be spent, but because of red tape it is not being spent.

Now imagine if this money were to be spent, many of you would benefit,” he said.

If the government had approved N$54 million per stadium, it would have spent N$6.5 billion on 121 sport stadiums, compared to the current N$1.8 billion it would spend on the same number of facilities.

‘MISINFORMED’

Contacted for comment yesterday, RCC chief executive Dasius Nelumbu said: “I’m on the road and will be able to provide you with a factual response tomorrow. You are misinformed.”
The Namibian earlier this month reported that the government had hand-picked the RCC to oversee a N$140-million project to build basic sport facilities across all 14 regions.

In the current financial year, each of the 14 regions will receive two facilities – 28 in total.

Deputy minister of education, innovation, youth, sport, arts and culture Dino Ballotti is the political driver of the project within the government.

The project comes after a December 2025 directive from president Netumbo Nandi-Ndaitwah that regional governors should lead the construction of stadiums and sport facilities.

She expressed concern over slow progress despite N$1.3 billion being allocated in the 2025/26 national budget for sport, youth, and national service.

A presidential letter dated 30 December called for treasury exemptions to avoid administrative bottlenecks and delays.

While the letter specifically mentions governors, sources at the sport ministry and in the Presidency say Ballotti was also granted an exemption.

He has allegedly been allowed to work directly with the RCC without following standard public procurement rules.
Ballotti did not respond to questions sent yesterday.

He again said he does not speak to The Namibian.

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