…. construction sector faces stiff competition
WINDHOEK – The Namibian Defence Force (NDF) has expanded its business empire by establishing a construction arm, which will most likely take over all construction needs of the military in a move which could see private contractors sidelined in NDF tenders.
The Minister of Defence, Nahas Angula yesterday inaugurated the August 26 UBM Construction (Pty) Ltd company at its headquarters in Windhoek.
The company is fully government-owned through the Ministry of Defence and Colonel John Namoloh has been appointed as the Managing Director of the new company, which was registered in July 2013.
The new company is the ninth subsidiary of NDF’s business wing, August 26 Holdings.
“Competition is good. The private sector is not excluded, if they can give a good price then fine but if they expect favours they must know that defence comes first,” an excited Angula told New Era when asked whether the private sector will still be allowed to tender for lucrative military construction contracts.
With construction of a state-of-the-art N$450 million military hospital in Windhoek to commence soon, it is widely expected the new construction company might be given the nod to construct the new military hospital.
According to Angula, the establishment of the company was prompted by challenges to improve the working and living conditions of NDF members.
“We take this opportunity to reassure the Namibian people that efforts are being made in modernising other defence areas, including health and transport with the aim of achieving self-sufficiency and self-assurance,” he said.
Angula used the platform to urge line ministries such as Safety and Security, Health and Social Services, and Education to make use of the services of the new military construction company in order to meet the housing, accommodation and building needs of the country. If his calls are heeded, private construction firms will see a drastic decline of tenders coming their way in the future.
The company currently employs 36 people, 32 of whom are on the payroll of the Ministry of Defence. Three are on the payroll of the company while one is one is on August 26 Holdings’ payroll.
Its new MD said the company is a serious business entity committed to make a significant contribution to the construction industry in the country with the intention of venturing into other construction opportunities.
“We are determined to enter the market and we promise excellence, affordability and second-to-none products. It is our fervent hope and wish that our government will continue to render support and assistance to ensure that this company does not become stillborn and end a premature existence,” Namoloh said.
Namoloh further indicated the new firm is ready to revamp army barracks and other infrastructure into modern and decent human habitation.
A business plan is still being drafted for the company, said Namoloh, who also made known that the company receives its material from suppliers in South Korea, India and the United States of America while negotiations to secure suppliers are at an advanced stage.
The Minister of Regional and Local Government, Housing and Rural Development (Rtd) Major General Charles Namoloh who is said to be the brainchild of August 26 UBM Construction company encouraged the company to roll out its services to other line ministries and also did not rule out the chances of the new company being roped to construct houses under the mass housing programme when the programme enters its second phase.
“You need to build momentum so that people can feel that the housing challenges are being addressed. Next month we will be handing over about 1 000 houses under mass housing, it is my hope that in its second phase UBM construction will be part of the mass housing,” Namoloh said.