National power utility company of Namibia (NamPower) is being dragged to court after it chose black economic empowerment, decentralisation and rural development as bases for awarding a N$30 million tender.
A Swakopmund-based civil construction firm, Premier Construction CC, is now suing the power utility and wants it to cancel the tender award.
NamPower awarded the tender to upgrade an electricity substation in Kunene and construct a terrace, roads and other civil works to Outapi-based Ama Engineering CC. Kunene substation is located 40km south of Ruacana.
Premier Construction CC is asking the High Court to have tender number NPWR/2014/23 stopped. The close corporation is questioning the legality of the process to award the tender to Ama Engineering CC.
Premier Construction is requesting the court to set aside the award of the tender to Ama Engineering and Construction CC and to declare any agreement between NamPower and Ama Engineering invalid.
Premier Construction is also saying that Ama Engineering should be barred from doing any work on the tender if a contract was already signed. The close corporation also wants NamPower and the respondents to pay for its legal costs in the case.
The firm claims that NamPower did not follow internal procedures when the company awarded the tender, and that its own tender bid was 25% lower than Ama Engineering’s. Ama Engineering’s tender bid was at a price of N$29 million, while Premier Construction’s was at N$23 million. Another tenderer, Emirates Trading, which is also listed as a respondent, submitted a tender quote of N$34,6 million…
South Africa Today Africa – Southern Africa Namibia News
