Chinese contractors circle over NAMFISA’s N$200m new HQ tender

• By Confidente Reporter

CONSTRUCTION Industry Federation (CIF) General Manager Bärbel Kirchner says the results of the tender opening for constructing NAMFISA’s new Head Office are very disappointing.

At least 10 of the 13 bids received for the construction of the new head office are from Chinese companies.

Many foreign companies submitted a bid together in a joint venture with locally owned businesses.

“One explanation might be that participating bidders had to show proof of work carried out over the last 10 years with a cumulative financial amount of N$ 180 million, and at least one of the previous projects needed a project value of N$75 million. Most of our contractors would not be able to participate on their own. This is especially so, considering the Namibian construction sector has been in a recession for most of the last eight years,” she said.

Most tenderers are Chinese firms that made offers ranging from N$ 214 million to N$ 280 million for the state-owned entity’s new head office.

Kirchner pointed out that local contractors might have decided not to bid, as it was obvious, they could not compete with foreign contractors with access to cheaper financing arrangements.

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