NamWater turns to foreign firms after N$315m local failures

NamWater says the failure of local contractors to complete various water projects valued at N$315 million since 2021 has prompted its decision to consider more efficient international companies to do the job in some cases.

This comes amidst accusations by the Namibia Local Business Association (Naloba) that the national water utility favours international contractors when awarding water projects.

NamWater, in a statement issued yesterday, expressed concern over the number of key water projects that have not been completed by local contractors.

“There have been instances where projects awarded to local entities have faced significant delays, non-performance or abandonment,” NamWater’s spokesperson Lot Ndamanomhata said.



Projects stalled by local contractors

Some of these projects include parts A and B of the Omahenene–Olushandja canal reconstruction, where work commenced in February 2021, which remains incomplete because the contractor entrusted to reconstruct part B abandoned the site at some point, delaying progress, NamWater said.

The much-awaited Goblenz reservoir replacement is also standing idle while community members yearn for water. Work on the project began in September 2023, but the contractor abandoned the site after completing only 10% of the work.

NamWater had no choice but to terminate the contract and seek alternative solutions, Ndamanomhata said.

The drilling of several boreholes in Opuwo is also in limbo after “the contractor failed to mobilise or commence work on-site after the award," the spokesperson said.

“This project was critical to resolving the water crisis in Opuwo, which continues as NamWater works to reassign the contract."



Foreign expertise may be called on

“Additionally, several other locally awarded projects are significantly behind schedule, further impacting our operations and ability to meet water supply demands. While NamWater strongly supports local empowerment, these challenges emphasise the importance of engaging contractors who meet all technical and financial requirements and demonstrate the capacity to deliver,” the water utility said.

The Naute–Keetmanshoop pipeline replacement is also in jeopardy after the contractor failed to provide the necessary performance guarantee and never mobilised on-site, subsequently forcing NamWater to cancel the award to prevent further delays.

Despite the questionable workmanship by local contractors, Ndamanomhata added: “NamWater remains committed to transparency, fairness and compliance with Namibia’s Public Procurement Act. Our goal is to deliver reliable water infrastructure and services while fostering local economic growth and development.”

Ndamanomhata said the water utility has awarded numerous projects to Namibian companies in line with their mandate to promote local participation and development, adding that local contractors are given preference wherever they meet the required technical and financial criteria for project execution.

However, he said, for certain large-scale or highly specialised projects, international expertise may be necessary to meet technical requirements.