Windhoek
In what could be an economic game changer that could boost the fortunes of local contractors typically engaged in sub-contracting for foreign firms, the deputy minister of works and transport, James Sankwasa, wants genuine empowerment of locals through the Namibianisation of roads construction.
The sentiment among locals involved in the construction of roads, schools, hospitals, clinics and other projects is that they have been getting a raw deal, as they are on the periphery and are usually roped in as small-town contractors.
On the other hand, foreign companies – mainly owned by the Chinese and a handful of well-connected local elite, among others – are predominant and enjoy the lion’s share of the multi-billion dollar sector at the expense of smaller contractors.
In a move that could replace this piecemeal approach with genuine empowerment through Namibianisation, Sankwasa has sent a directive to SOEs falling under the ambit of the Ministry of Works and Transport.
He says foreign companies are predominant in the construction sector and this compromises the principle of the much-desired skills transfer and genuine empowerment of Namibian contractors, who are not given the opportunity to gain the much-needed experience and are thus pliable to the dictates of these firms.
Sankwasa has instructed the Roads Authority (RA), the Roads Contractor Company (RCC), TransNamib, MVA Fund, Namibia Airports Company and Namibia Ports Authority (NamPort) to submit five-year Namibianisation Accountability Reports, covering the periods 2010 to 2014, including the first half of 2015.
The SOEs were instructed by Sankwasa to submit the Namibianisation Accountability Reports latest by Friday last week.
“Namibia has enjoyed its independence for the last 25 years with the clear economic policy for the Namibianisation of various industries, especially in the construction of various industries in the construction industry,” said Sankwasa.
He argues that for the past 25 years Namibia “might not have taken stock of how far we are with the Namibianisation process and the time for action is now.” The works and transport deputy minister’s stance is likely to be commended by those who feel hard done by those who dominate the construction sector.
The Namibianisation audit reports are expected to cover all the construction projects undertaken by the SOEs that fall under the ambit of the works and transport ministry.
They are also required to indicate the shareholding structures, clearly stipulating the percentage of foreign and local ownership that benefitted from such project contracts and the value of the dividends shared, while at the same time providing the names of women and disabled people awarded tenders over the previous five years.
Sankwasa said his directive should be seen in the context of Section 15 (5) of the Tender Board of Namibia Act, which makes provision for comparing tenders in line with government’s policy to redress social, economic and educational imbalances.
Furthermore, he wants Namibian companies to acquire requisite skills. With regard to the Roads Authority he said sentiment among locals in the areas that he visited was that many citizens are highly concerned about the poor quality of the gravel used in the construction of roads.
Another concern he raised was that “most roads constructed after Independence have an extremely high maintenance cost, compared to roads constructed before Independence,” adding that “high maintenance costs result in more expenditure on the same item, thereby stifling new development.”
He also expressed reservations about awarding tenders based on the lowest quote, even when such a tender has the lowest technical score. In this vein he gave the example of the award of Section 3 of the Windhoek-Okahandja road to Grinakar LTA, which is already three months behind schedule.