RCC seeks N$500 million DBN loan to build sport stadiums across Namibia

The Roads Contractor Company (RCC) has requested an additional N$500 million loan from the Development Bank of Namibia (DBN) to construct sport stadiums in 14 regions.

This request comes as the state-owned company, which was on the verge of bankruptcy in recent years, received the stadium contract without a public tender process.

The appointment was made directly by the government as part of president Netumbo Nandi-Ndaitwah’s pledge to build infrastructure in all 121 constituencies.

Details of the funding request are contained in a letter dated 30 March, written by RCC acting chief executive Dasius Nelumbu to DBN chief executive Titus Ndove.

In the letter, Nelumbu says the additional N$500 million would enable the company to deliver standardised, quality facilities nationwide.

Nelumbu could not be reached for comment yesterday.

According to documents seen by The Namibian, RCC offered to construct the eight sport facilities using the funds. It also promised that it would partner with the governors from the “Oshikoto, Oshana, Hardap, Kunene, Ohangwena, Zambezi, Kavango East and Omusati” regions.

A government directive has also ordered RCC to only subcontract the work to local small and medium enterprises. However, two sources within the company told The Namibian that the construction company is allegedly planning to partner with a Chinese-owned company.

Details of Nandi-Ndaitwah’s flagship sport infrastructure project remain shrouded in secrecy. It is unclear how much each stadium will cost, how many will be funded this year, the total budget and where they will be built. Concerns are already emerging that business figures and politicians are positioning themselves around the project amid fears of inflated construction costs.

The sport ministry has allocated N$5 million per basic sport facility to be rolled out across all 121 constituencies. Each of the 14 regions received N$10 million to fund two facilities – 28 facilities in total – according to documents seen by The Namibian.

This would cost a total of N$140 million.

However, other documents show that the cost will be N$25 million per facility.

Some sources familiar with the project say the N$5 million allocation is adequate for basic sport infrastructure, including soccer, volleyball and netball pitches, as well as ablution facilities and other essential amenities.

Works and transport minister Veikko Nekundi says he is aware of RCC’s loan request to DBN.

“Our ministry is busy finalising and validating the designs associated with those stadiums. However, this will fall under the ministry of education, and the National Planning Commission,” he said yesterday.

The push to construct sport facilities across the country is outlined in Swapo’s manifesto and implementation plan, which prioritises the development of sport infrastructure at constituency level.

The plan emphasises rolling out facilities across all constituencies, with a focus on accessibility rather than high-end infrastructure.

DBN spokesperson Jerome Mutumba told The Namibian yesterday that the bank will not disclose their client’s funding applications.

“As a development finance institution, DBN is bound by strict client confidentiality obligations. As such, we are not at liberty to disclose information relating to funding applications, requests or the status of engagements with clients or potential clients,” he said.

Mutumba said the bank assesses all funding applications in line with its policies.

“The board approved policies and established due diligence processes, which consider, among other factors, project viability, developmental impact, financial sustainability and the applicant’s ability to meet repayment obligations.

“If anything, I advise that you direct your inquiry to the potential client in question, if they are at liberty to discuss or comment on the matter,” he said.

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