Road costs can vary widely, say parastatal managers

IT costs the Namibian taxpayer about N$1 million to build one kilometre of tarred road, but in a few cases this figure can increase fourfold.

A director of a company supervising the rebuilding of the Okahandja-Otjiwarongo highway said yesterday it would cost N$980 000 for every kilometre. Hendrik Johannes Kruger from Windhoek Consulting Engineers (WCE) was giving evidence at the Presidential Commission of Inquiry into the Activities, Affairs, Management and Operations of the Roads Authority (RA) and the Road Fund Administration (RFA).The highway has become mired in controversy with some in the Roads Authority suggesting that the cost was inflated.The contract for the re-construction of the 176 km road is worth N$177,8 million.To back their argument that costs varied depending on material used and the terrain through which the road passed, managers at the parastatal told The Namibian that a 22-km stretch of road between Windhoek and Rehoboth had already cost the Roads Authority over N$90 million, These amounts exclude fees for the consulting firms, which amount to roughly four per cent of the total, according to a Roads Authority manager.The parastatal’s manager for the Road Management System, Sophia Tekie, has questioned the cost as well as the decision to re-build the entire Okahandja-Otjiwarongo road, arguing that the Roads Authority could have repaired some sections to save money.Giving evidence yesterday, Kruger said the highway had come to the end of its lifespan and had to be replaced.Roads Authority managers Peter Thiemann, Lawrence Kiggundu and Andreas Helmich told The Namibian that road-building costs could differ, sometimes widely, because of outside factors.Inflation, currency exchange rates, the price of fuel, and “market conditions in South Africa” heavily influenced road-building costs, they said.The 117-km road between Katima Mulilo and Kongolo is being constructed at a cost of N$194 million – N$1,65 million a kilometre.Thiemann, the Divisional Engineer for Reconstruction and Rehabilitation, said he cancelled the first tenders for the road as companies were asking for up to N$250 million.The Mururani Gate-Rundu highway, covering about 120 km, is being reconstructed for N$112 million.Kiggundu and Helmich said a 22-km section of the road to Rehoboth had already cost N$94 million.Mountainous terrain, blasting rocks to widen the road, the use of asphalt and the fact that the contractors could not use bypasses had pushed up the costs.Kruger yesterday came under intense questioning from the legal counsel for the inquiry, Otniel Podewiltz, about the quality of the newly-built section of the Okahandja-Otjiwarongo road.At the end of his testimony yesterday, Jurgen Oelker, who was brought to Namibia to upgrade the Roads Authority laboratory, said the presidential inquiry should be seen as a “wake up call” to ensure the parastatal was better run.Oelker at one stage said the “Roads Authority I worked for was a holy mess … I feel sorry for Namibians if it goes on like this”.The public hearing continues.Hendrik Johannes Kruger from Windhoek Consulting Engineers (WCE) was giving evidence at the Presidential Commission of Inquiry into the Activities, Affairs, Management and Operations of the Roads Authority (RA) and the Road Fund Administration (RFA). The highway has become mired in controversy with some in the Roads Authority suggesting that the cost was inflated. The contract for the re-construction of the 176 km road is worth N$177,8 million. To back their argument that costs varied depending on material used and the terrain through which the road passed, managers at the parastatal told The Namibian that a 22-km stretch of road between Windhoek and Rehoboth had already cost the Roads Authority over N$90 million, These amounts exclude fees for the consulting firms, which amount to roughly four per cent of the total, according to a Roads Authority manager. The parastatal’s manager for the Road Management System, Sophia Tekie, has questioned the cost as well as the decision to re-build the entire Okahandja-Otjiwarongo road, arguing that the Roads Authority could have repaired some sections to save money. Giving evidence yesterday, Kruger said the highway had come to the end of its lifespan and had to be replaced. Roads Authority managers Peter Thiemann, Lawrence Kiggundu and Andreas Helmich told The Namibian that road-building costs could differ, sometimes widely, because of outside factors. Inflation, currency exchange rates, the price of fuel, and “market conditions in South Africa” heavily influenced road-building costs, they said. The 117-km road between Katima Mulilo and Kongolo is being constructed at a cost of N$194 million – N$1,65 million a kilometre. Thiemann, the Divisional Engineer for Reconstruction and Rehabilitation, said he cancelled the first tenders for the road as companies were asking for up to N$250 million. The Mururani Gate-Rundu highway, covering about 120 km, is being reconstructed for N$112 million. Kiggundu and Helmich said a 22-km section of the road to Rehoboth had already cost N$94 million. Mountainous terrain, blasting rocks to widen the road, the use of asphalt and the fact that the contractors could not use bypasses had pushed up the costs. Kruger yesterday came under intense questioning from the legal counsel for the inquiry, Otniel Podewiltz, about the quality of the newly-built section of the Okahandja-Otjiwarongo road. At the end of his testimony yesterday, Jurgen Oelker, who was brought to Namibia to upgrade the Roads Authority laboratory, said the presidential inquiry should be seen as a “wake up call” to ensure the parastatal was better run. Oelker at one stage said the “Roads Authority I worked for was a holy mess … I feel sorry for Namibians if it goes on like this”. The public hearing continues.