SWAKOPMUND - The government has announced the auction of 26 384 metric tonnes of its governmental objective horse mackerel quota to the highest bidder.
The government has been conducting fish auction quotas to fund government expenditure. The auctioning of governmental objective quotas started in 2021 and has generated over N$600 million in revenue for the country.
The finance and fisheries ministries earlier this month announced their latest intention by inviting potential bidders to take part in the auction that will end on 1 March.
According to the bidding documents, bids should be made in increments of 100 metric tonnes. The minimum price set for the freezer quota is N$3 500 per MT, while the wet fish quota is set at N$1 000 per metric ton.
An official in the ministry yesterday told New Era that the government will not be dividing the quota for wet and freezer this time around.
“It is up to the bidders now to indicate what quantity as well as if they want wet or freezer,” Andreas Ileka said yesterday. According to the bid document, each bidder is required to furnish a bid security deposit equivalent to the reserve price per metric ton multiplied by the volume of metric tonnes applied for.
“Successful bidders are mandated to provide a bank guarantee equal to their bid price. This guarantee, issued by a local banking institution licensed by the Bank of Namibia, serves as a commitment to settle the amount payable,” the document reads.
According to the finance ministry, they will determine the allocation of bids promptly after the auction’s closure, and quotas will be awarded to the highest bidders based on their bid price.
The general conditions of issue stipulate that bidding documents must be signed by an authorised person of the bidding entity. In the case of a joint venture, all involved parties must sign an agreement or letter of intent, acknowledging joint and several liabilities.
The fishing period begins upon the issuance of the quota and ends on 31 December this year. Vessels harvesting marine resources must be licensed in accordance with the Marine Resources Act, with at least 55% of the operators being Namibian citizens.