The Minister of Works and Transport, Veikko Nekundi has informed the National Assembly that his office will engage with the Roads Contractor Company to review its terms and conditions, which currently exclude many Namibian contractors from qualifying for projects.
Nekundi was responding to a question from Dawid Eigub of the Landless People’s Movement, who raised concerns about the dominance of Chinese contractors in Namibia’s construction industry.
Eigub questioned the impact this trend is having on local businesses, noting that many Namibian contractors are being excluded from major infrastructure projects.
“Some of the requirements are excessive. Contractors are expected to have at least N$17 million in cash in their bank accounts, to have completed projects worth about N$1,2 billion within SADC, and to provide performance guarantees of up to N$100 million. Considering that Namibian contractors are already being edged out by Chinese contractors, how will they meet these requirements?”
In response, Nekundi acknowledged the concern but explained that existing laws make it difficult, and in some cases almost impossible, for the government to directly interfere in contractor selection processes.
He added that while the ministry will engage relevant institutions on the matter, local contractors also need to improve their capacity and meet the required standards in order to compete successfully for contracts.
“Ministers are not even allowed to comment on procurement matters. It is very difficult—you may see that things are wrong, but you are limited and must be cautious. The moment you speak, it is reported in the media that the minister is interfering. As much as we are held accountable, we should also be given the authority to protect the interests of the Namibian people. Regarding the tender you referred to, I will engage the Roads Contractor Company (RCC) to understand why those requirements are in place.”