Business Reporter
THE Central Procurement Board of Namibia (CPBN) has reported a significant increase in the number of procurement awards during the 2022-2023 financial year, with a total of 32 procurement projects (competitive and direct procurements) awarded at a value of N$8.1 billion. This translates into the award of 92 contracts due to the lot allocation system promoted by the Board for inclusivity purposes. This is in comparison to 23 procurement projects awarded in the 2021-2022 financial year, valued at N$2.3 billion, representing an increase of 71%.
“From the N$8.1 billion in awards, N$7.1 billion worth of contracts were awarded to Namibians. This includes competitive and direct procurement,” said Johanna Kambala, spokesperson of the CPBN.
Kambala also said that out of the awarded projects, a total of 20 awards were given through open advertised bidding, valued at N$7.2 billion, compared to the same number of awards valued at N$2.2 billion the previous year. This represents a 69% increase in the value of awards. She added that two contracts were awarded through restricted bidding at a value of N$15 million, compared to one contract awarded in the 2021-2022 financial year valued at N$30 million, representing a 48% decrease in the value awarded.
Kambala also added an increase in the number of procurement contracts awarded through direct procurement, from 2 contracts valued at N$89 million in the 2021-2022 financial year to 8 contracts valued at N$904 million in the 2022-2023 financial year, representing a 90% increase.
“From the N$8.1 billion in awards, N$7.1 billion worth of contracts were awarded to Namibians. This includes competitive and direct procurement,” Kambala reiterated.
She added that a total of 6 bids valued at N$4.3 billion were cancelled during the reporting period. “The bid with the highest value was for the supply of foodstuffs to government schools for the Ministry of Education, Arts, and Culture, valued at N$3.5 billion. This bid was cancelled in terms of Section 54 (1) (a) and (g) of the Public Procurement Act. It is worth noting that this bid was initially cancelled during the 2021/2022 financial year because the bidding process did not achieve expected outcomes and the bid validity expired, hence the cancellation. However, the cancellation was challenged in the High Court, resulting in the process only being completed in the financial year under reporting,” Kambala said.
She also mentioned that the Board approved 13 requests for contract extensions valued at N$592 million compared to 5 extension requests in the 2021-2022 financial year, valued at N$296 million.
“The majority of the contract extensions were for the Ministry of Health and Social Services, valued at N$122 million. The increase in the number of contract extensions represents a 99% increase. The reason for the increase in the number and value of contract extensions is due to procurement processes for competitive bidding not being finalized upon the expiry of existing contracts, with some public entities requesting contract extensions to conduct research and improve their specifications,” Kambala said.
