Road contractor denies driving SMEs out

Otesa Civil Engineering, the main contractor on the tender for the upgrade project for the Opuwo-Otjivize road, has denied sidelining 15 small and medium partners on the project.

The 15 small and medium enterprise (SME) subcontractors on 9 June 2025 complained to Otesa contracts manager Shaun Rickerts that while the contract had been awarded more than six months earlier, they had not received any formal communication from Otesa regarding the signing of the main contract with the Roads Authority, the required partnership contract with the SMEs, and the issuance of letters of award.

The SME contractors said they had not been notified, invited, or represented at the site handover on 9 May last year.

They said the delay in formalising their participation has severely undermined their planning, resource allocation, and financial readiness.

Otesa Engineering spokesperson Tracy Schaller, however, confirms in a statement that a stakeholder engagement meeting was held on 11 November 2025, in collaboration with the consulting engineers and Kunene governor Vipua Muharukua’s office.

“All SME partners forming part of the project were invited to attend the briefing meeting, during which project-related information was shared. At the briefing, SMEs were informed that the project would commence as soon as the budget was resolved with the client,” she says.

Schaller says the SMEs were invited to attend the groundbreaking ceremony held on 12 November 2025, “and Otesa confirms that all SMEs attended both the briefing and the groundbreaking ceremony”.

The groundbreaking was held at Opuwo and president Netumbo Nandi-Ndaitwah officiated the ceremony.

“Otesa can confirm that actual construction activities on the project have not commenced due to the budget, which is currently being resolved.

“With respect to contractual matters and the status of the project, Otesa respectfully refers such queries to the client, the Roads Authority Namibia, as the contracting authority responsible for project oversight and official updates,” she says.

Otesa remains committed to maintaining open engagement with stakeholders and contributing to the delivery of quality infrastructure in Namibia, Schaller says.

The SMEs have written to the Roads Authority’s chief executive, as well as the Ministry of Works and Transport for intervention on the status of the project.

Contacted for comment, Roads Authority chief executive Hippy Tjivikua last week said the SMEs have been consulted continuously.

He said SME partners on the project were formally invited and engaged on 11 November 2025 to get a briefing on the project status.

“In addition, the main contractor continues to maintain regular communication with the SMEs, ensuring they are kept informed of any new developments. The SME partnership is contractually secured and cannot be modified, therefore, the sidelining of SMEs will not occur,” Tjivikua said.

He said the project contract was formally signed on 9 May 2025, and work has since started but is limited to activities that can be accommodated within the available budget.

Tjivikua said the scope of work is defined in the contract and the contractor is aware of the client’s financial arrangement, and the contractor’s current programme of works is aligned to the available budget.

– email: matthew@namibian.com.na

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