RA defends Zhong Mei tender award
Only one objection raised
The Roads Authority has assured that Namibian contractors will benefit from the lucrative project, despite the main bid going to a Chinese firm.
The Roads Authority (RA) has defended a decision to award a lucrative road upgrade and construction project to Chinese firm Zhong Mei Engineering Group, which allegedly pays no taxes in Namibia.
The company is currently embroiled in a tax scandal with the Namibia Revenue Authority (NamRA), amid claims that it has not been in good standing as far as its taxes are concerned.
Explaining the choice to award the Usakos-Karibib road bid to Zhong Mei, the RA said the company met all the requirements.
“The bid evaluation and subsequent appointment of the bidder was conducted based on Section 52 of the Public Procurement Act and the requirements, as outlined in the bidding document.”
Bidders were allowed to raise objections to the awarding of the bid, and only one objection was raised, the RA said.
“In compliance with the Public Procurement Act, a seven-day standstill period was allowed for bidders to submit their objections after the bid evaluation was completed. One objection was lodged and the concerns were attended to accordingly, before the RA proceeded with the award. Hence, the appointment of the successful contractor fully complied with the provision of the Public Procurement Act and [German development bank] KfW regulations. However, any aggrieved bidder may still approach the review panel to seek recourse,” the RA said.
Locals to benefit
According to the RA, the project will be financed by the KfW through a German financial cooperation with Namibia, under the fifth National Development Plan support programme - at a total cost of N$343 million.
Local bidders would also get an opportunity to benefit from the bid, it added.
“The combined value of the works reserved for local Namibian contractors is N$63.8 million and amounts to 25.18% of the total contract amount.
“Furthermore, approximately 500 employment opportunities will be created for Namibians during the construction period.”
Construction works are scheduled to commence in September and the expected completion of the project is March 2025. During this time, the RA will ensure that works are carried out diligently to minimise any inconvenience to motorists and residents in the vicinity, it said.
The company is currently embroiled in a tax scandal with the Namibia Revenue Authority (NamRA), amid claims that it has not been in good standing as far as its taxes are concerned.
Explaining the choice to award the Usakos-Karibib road bid to Zhong Mei, the RA said the company met all the requirements.
“The bid evaluation and subsequent appointment of the bidder was conducted based on Section 52 of the Public Procurement Act and the requirements, as outlined in the bidding document.”
Bidders were allowed to raise objections to the awarding of the bid, and only one objection was raised, the RA said.
“In compliance with the Public Procurement Act, a seven-day standstill period was allowed for bidders to submit their objections after the bid evaluation was completed. One objection was lodged and the concerns were attended to accordingly, before the RA proceeded with the award. Hence, the appointment of the successful contractor fully complied with the provision of the Public Procurement Act and [German development bank] KfW regulations. However, any aggrieved bidder may still approach the review panel to seek recourse,” the RA said.
Locals to benefit
According to the RA, the project will be financed by the KfW through a German financial cooperation with Namibia, under the fifth National Development Plan support programme - at a total cost of N$343 million.
Local bidders would also get an opportunity to benefit from the bid, it added.
“The combined value of the works reserved for local Namibian contractors is N$63.8 million and amounts to 25.18% of the total contract amount.
“Furthermore, approximately 500 employment opportunities will be created for Namibians during the construction period.”
Construction works are scheduled to commence in September and the expected completion of the project is March 2025. During this time, the RA will ensure that works are carried out diligently to minimise any inconvenience to motorists and residents in the vicinity, it said.
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