The Namibia Local Business Association (NALOBA) has expressed concern over the recent decision by NamWater to award a major water pipeline tender of N$237 million to a Chinese company.
NALOBA said NamWater bypassed competent local businesses.
A statement issued by NALOBA's spokesperson, Marius Nangolo, said the decision not only undermines efforts to localise the economy but also poses a serious threat to job creation and the retention of capital within their country.
According to Nangolo, supporting local companies ensures that wealth remains within the country, fosters innovation, and promotes employment opportunities for citizens.
He added that when contracts are awarded to foreign entities, they risk creating a dependency that hampers sustainable economic growth.
NALOBA urged NamWater and other institutions to reconsider their decisions and adopt policies that promote local businesses in future projects.
He stressed that a collaborative approach between the public and private sectors is essential to ensuring that the economy remains robust, inclusive, and forward-looking.
NamWater's spokesperson, Lot Ndamanomhata, told Nampa that the procurement for the project followed the Open International Bidding process, as required by the financing agreement between the government and KfW Development Bank.
Ndamanomhata indicated that the agreement mandated adherence to KfW and Namibia's public procurement requirements.
He said the tender was open to both local and international bidders, with evaluations conducted based on technical and financial criteria.
The selected contractors, he stressed, demonstrated the necessary capacity, expertise, and ability to meet the project's requirements and timelines.
He added that NamWater remains committed to supporting local businesses wherever possible, and for the project in question, the awarded contractors have committed to employing local labourers and subcontractors to ensure direct benefits for Namibian communities.
The Ogongo-Oshakati pipeline replacement project aims to upgrade the ageing asbestos-cement pipeline with a modern system capable of meeting future water demands.
The project, valued at N$236,838,202, includes a new 53-kilometre pipeline divided into three segments.