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Non-delivery of N$315m tenders hamper NamWater

NOT COMPLETED … Part of the 5.8-kilometre Omahenene-Olushandja canal which is a lifeline for the majority of people in the Omusati, Oshana, Oshikoto and Ohangwena regions who depend on water from the Calueque Dam in southern Angola.

He inability of local contractors to complete five projects, valued at approximately N$315 million, have hindered the Namibia Water Corporation (NamWater) in delivering water infrastructure projects to some communities on time and within budget.

This was said by NamWater spokesperson Lot Ndamanomhata in a statement yesterday in response to concerns that the water utility was awarding contracts to foreign companies.

He said NamWater had awarded numerous projects to Namibian companies to promote local participation and development.
“Local contractors are given preference wherever they meet the required technical and financial criteria for project execution.

“However, for certain large-scale or highly specialised projects, international expertise may be necessary to meet technical requirements,” Ndamanomhata said.

He added that in such cases, NamWater ensures knowledge transfer and collaboration with local partners to build national capacity.

Ndamanomhata said despite NamWater’s commitment, challenges remain as there have been instances where projects awarded to local contractors have faced significant delays, non-performance, or abandonment.

Giving examples, he said work on the Omahenene-Olushandja Canal Reconstruction, part B, commenced in February 2021, but it remains incomplete to date as the contractor abandoned the site at some point.

“The Omahenene-Olushandja Canal Reconstruction, part A, also commenced in February 2021, but the project is yet to be completed,” he said.

According to Ndamanomhata, work on the Goblenz Reservoir replacement began in September 2023, but the contractor abandoned the site after completing only 10% of the work.

“NamWater had no choice but to terminate the contract and seek alternative solutions,” he said.

The contractor awarded the crucial Opuwo borehole drilling project failed to mobilise or commence work on-site.

“This project was critical to resolving the water crisis at Opuwo, which continues as NamWater works to reassign the contract,” Ndamanomhata added.

Another case of non-performance was at the Naute-Keetmanshoop water pipeline replacement project where the contractor failed to provide the necessary performance guarantee and never mobilised on-site.

NamWater was forced to cancel the award to prevent further delays, Ndamanomhata said.

He said several other projects awarded to local contractors are significantly behind schedule, further impacting NamWater’s operations and ability to meet water supply demands.

“While NamWater strongly supports local empowerment, these challenges emphasise the importance of engaging contractors who meet all technical and financial requirements and demonstrate the capacity to deliver,” he said.

NamWater remains committed to supporting local businesses wherever possible and will continue to evaluate ways to improve local contractor performance while maintaining our mandate to provide reliable water services to all Namibians.

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