The Namibia National Power (NamPower) utility company was granted an exemption to conduct procurement on its own behalf effective from 01 May 2021 until 31 April 2023. This exemption was granted in line with Section 4(2) of the Public Procurement Act.
The Procurement Policy Unit (PPU) in the Ministry of Finance has amongst other functions a responsibility, to propose various thresholds to the minister relating to public procurement or disposal to be applied by public entities and the board in line with the objects of the Public Procurement Act.
According to finance minister Iipumbu Shiimi, the PPU embarked on a public procurement decongestion project born out of the recommendations by the High-Level Panel on the Namibian Economy (HLPNE) which identified that the new Public Procurement Act created congestion in the public procurement system that has a negative impact on economic growth and development.
To implement the above targeted exemption, the PPU undertook a project on procurement capacity assessment for public entities as part of the larger public procurement decongestion project.
The objective of this project is to enhance the efficiency of the public procurement system by establishing an optimum balance of responsibilities and duties within the procurement system, based on merit and ability to efficiently undertake procurement.
The PPU began with the pilot implementation of the project from November 2020 to early this year at three public entities namely, NamPower, NamWater and the City of Windhoek. From these assessments, NamPower scored a favourable rating thereby demonstrating substantial capacity both in terms of human and institutional spheres as well as a good degree of compliance during past procurement processes which were drawn for the audit.
Shiimi pointed out that the exemption is in no anyway meant to erode the role of CPBN and its mandate as provided for by the Act. The reason for this temporal, yet conditional lifting is based on the intention to enhance efficiency and effectiveness within the procurement system.
“Therefore, it is reasonable to believe that expediting procurement by NamPower among other strategic public entities will go a long way in terms of product and public service delivery to Namibians and contribution to the infrastructural investment required for economic growth and development,” he elaborated. -mndjavera@nepc.com.na