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Home News Namibia

Local contractors’ delays and abandonments stall N$315m water projects

by editor
January 22, 2025
in Namibia
6
A A

NamWater says locally awarded projects worth N$315 million have been significantly delayed or abandoned, hampering its ability to meet water supply demands, despite the utility’s efforts to support local companies.

The water utility said this in response to recent concerns raised by the Namibia Local Business Association (NALOBA), about the impact of awarding water infrastructure projects to foreign companies.

“NamWater acknowledges the recent claims made by NALOBA and would like to take this opportunity to address these concerns while providing clarity on our procurement processes and challenges,” said NamWater’s Head of Public Relations and Corporate Communications, Lot Ndamanomhata.

He further explained that the Omahenene-Olushandja Canal Reconstruction (Parts A and B), which began in February 2021, remains incomplete due to contractor delays and site abandonment.

The Goblenz Reservoir Replacement project, which commenced in 2023, saw the contractor abandon the site after completing only 10% of the work, forcing NamWater to terminate the contract.

The Opuwo Boreholes Drilling project faced delays after the contractor failed to mobilise or commence work, exacerbating the water crisis in Opuwo.

Similarly, the Naute-Keetmanshoop Pipeline Replacement project could not proceed as the contractor failed to provide the required performance guarantee or mobilise on-site, resulting in the project’s cancellation.

“These five projects, valued at approximately N$315 million, highlight the real challenges that have hindered our ability to deliver water infrastructure projects on time and within budget. Additionally, several other locally awarded projects are significantly behind schedule, further impacting our operations and ability to meet water supply demands,” he said.

Ndamanomhata also said while NamWater remains dedicated to supporting local empowerment, it acknowledged that some specialised or large-scale projects might require international expertise to meet technical requirements.

In such cases, he said NamWater ensures collaboration with local partners to promote skills transfer and capacity building.

“However, for certain large-scale or highly specialised projects, international expertise may be necessary to meet technical requirements. In such cases, NamWater ensures knowledge transfer and collaboration with local partners to build national capacity,” he said.

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