The Namibia Water Corporation (NamWater) is undertaking a significant review of its procurement policies to bolster opportunities for small and medium enterprises (SMEs) within the water sector. This initiative, outlined by NamWater’s chief executive officer Abraham Nehemia during engagement sessions with northern-based SME owners, seeks to better align the corporation’s procurement processes with Namibia’s Public Procurement Act and broader socio-economic objectives, including SME empowerment, job creation, and infrastructure development.
Nehemia emphasised that procurement transcends mere transactional activity, constituting a vital component in service delivery, institutional trust, and national progress. For NamWater, this translates into fulfilling its mandate of providing safe and clean water to municipalities, industries, and rural communities by planning, constructing, and maintaining critical water infrastructure such as dams, pipelines, and treatment plants. The corporation also prioritises maintaining water quality standards and responding swiftly to emergencies such as droughts.
Recognising SMEs as crucial drivers of innovation and inclusive economic growth, NamWater aims to support these enterprises through several targeted measures. These include reserved procurement categories specifically for SMEs, subcontracting quotas to encourage participation in larger projects, capacity-building initiatives, and accelerated payment mechanisms to ease cash flow challenges faced by small businesses. The utility also offers procurement opportunities across a range of areas suitable for SMEs, including small civil works (such as pipeline and reservoir construction), mechanical and electrical maintenance, material supply, and non-consultancy services like cleaning, security, and logistics.
Nehemia candidly acknowledged persistent challenges confronting SMEs, notably limited access to financing and technical expertise required for complex projects. These difficulties have sometimes led to delays in project delivery. Addressing these barriers remains a core component of NamWater’s strategic review, which seeks to promote a more inclusive procurement environment through intensified engagement and monitoring of SME performance.
Despite these commitments, the relationship between NamWater and local contractors has not been without strain. The Construction Industries Federation (CIF) has voiced concerns about the corporation’s procurement practices, accusing NamWater of favouring foreign firms over local contractors. CIF’s chief executive, Bärbel Kirchner, attributes this issue to deficiencies in procurement and contractor selection processes and advocates for greater transparency and the establishment of a construction council to safeguard fair competition in the sector.
Complicating this dynamic, NamWater has faced significant challenges with local contractors failing to complete water projects valued at approximately N$315 million since 2021. As a result, the utility is considering engaging international firms with the requisite technical and financial capacity to ensure reliable delivery of water infrastructure. Nonetheless, NamWater maintains its commitment to adherence to the Namibian Public Procurement Act, striving to balance transparency and fairness while promoting local economic development.
NamWater also encourages local contractors to bolster their competitiveness by forming joint ventures with international partners, facilitating knowledge transfer and exposure to advanced techniques and global best practices. The corporation actively promotes projects with Namibian majority ownership as part of its broader empowerment and capacity-building goals.
Amid these procurement reforms and ongoing challenges, NamWater has issued warnings about procurement scams involving fraudsters impersonating officials to solicit payments in exchange for fictitious tender awards. The utility clarified that its procurement processes are transparent, competitive, and free of any payment demands, urging vendors to report suspicious activities to safeguard integrity in procurement.
In summary, NamWater’s review of its procurement system represents a pivotal step in enhancing SME participation and addressing structural shortcomings in Namibia’s water sector procurement landscape. While pragmatic responses to contractor failures may necessitate selective international engagements, the corporation remains focused on fostering local empowerment and infrastructure development in line with national economic goals. The success of these reforms will depend on transparent administration, robust capacity-building efforts, and collaborative engagement with Namibia’s SME community and industry stakeholders.
Source: Noah Wire Services
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