The government does not borrow money for funding for projects from unsolicited bids through individuals, private companies or agents acting on behalf of private companies or individuals.
This was said by the finance ministry’s executive director for finance Oscar Capelao. He was explaining procedures on government’s borrowing for funding the budget deficit as well as infrastructure projects.
Capelao said the Ministry of Finance had received numerous unsolicited funding proposals from private entities and agents acting on behalf of investors with funds looking for investment in Namibia.
“A number of these investors have identified specific projects to channel their funds to and most of the proposals also indicate the intention of the proponents to appoint contractors to implement the identified projects on behalf of the government,” he said.
He said while the ministry recognises the opportunity these funding proposals present to the government, the ministry would like to point out that all government infrastructure development projects and funding arrangements are undertaken strictly in adherence to established procedures set out in the National Planning Commission Act, and the State Finance Act.
Capelao said under the National Planning Commission Act, the secretariat is tasked to appraise, monitor and evaluate capital and development projects and programmes submitted by offices, ministries and agencies and make recommendations for possible funding to the Ministry of Finance.
He added that the State Finance Act grants the Ministry of Finance the authority to undertake public borrowing, both domestically and externally, to finance anticipated deficits in the State Revenue Fund, to obtain foreign currency, and to fund capital projects.
“Additionally, the Public Procurement Act provides that procurement of state funding be conducted through a competitive bidding process. This may include engagement with foreign governments, or through public auctions in the domestic or international market,” the statement said.
Capelao advised local and foreign investors with excess funds to finance infrastructure in Namibia to participate in the weekly government auctions for Treasury bills and bonds offered by the Bank of Namibia.
“Alternatively, such parties can participate in international bond issuances which the government undertakes occasionally,” he said.
– email: matthew@namibian.com.na
