The Construction Industries Federation of Namibia (CIF) has called on Works and Transport Minister Veikko Nekundi to substantiate his claim that only a few local contractors can handle major construction projects. The CIF wants Nekundi to correct the impression created by his remarks and apologise to the construction industry. The federation argues that Nekundi's assessment fails to distinguish between contractors' technical skills and their ability to meet financial and tender requirements.
CIF Chief Executive Bärbel Kirchner says Namibia has established construction companies with substantial experience, technical expertise, and resources. However, some are struggling to qualify for projects due to restrictive procurement conditions. Kirchner argues that a financial threshold or an unrealistic historical volume requirement should not replace a proper assessment of a contractor's ability to deliver.
According to the CIF, contractors' financial performance has been affected by years of economic decline and a shortage of projects. This has reduced their turnover, making it harder to qualify for new contracts that require bidders to demonstrate a strong financial record. The federation questions technical requirements that demand proof of having completed annual work volumes exceeding what has historically been commissioned in Namibia.
The CIF also questions Nekundi's claim that only three or four local contractors have the capacity to undertake major construction projects. Kirchner says such broad capacity claims undermine confidence in Namibian businesses and risk prejudicing future opportunities. This may even lead to continued justification of foreign contractors, she adds.
The federation calls on the government to recognise existing local expertise and address procurement barriers that may prevent capable businesses from competing for major contracts. The CIF argues that the government should create an enabling environment for local contractors to participate in major construction projects.
Nekundi's remarks have sparked concerns about the government's procurement policies and their impact on local contractors. The CIF's challenge highlights the need for a more nuanced assessment of contractors' capabilities. This assessment should consider both technical skills and financial capacity.
The outcome of the CIF's challenge remains to be seen. However, the federation's concerns about Nekundi's remarks and the government's procurement policies are likely to continue. The issue has significant implications for the construction industry in Namibia and the participation of local contractors in major projects.
Key points
- The Construction Industries Federation of Namibia challenges Works and Transport Minister Veikko Nekundi to substantiate his claim on local contractors' capacity.
- The federation argues that Nekundi's assessment fails to distinguish between contractors' technical skills and their ability to meet financial and tender requirements.
- The CIF calls on the government to recognise existing local expertise and address procurement barriers that may prevent capable businesses from competing for major contracts.
