By Staff reporter
WINDHOEK,NOVEMBER 05,The review panel of the Public Procurement Board (PPB) has, for the third time, instructed the Central Procurement Board of Namibia (CPBN) to re-evaluate the financial status of China Construction Company Ltd JV Profile Investments Ltd in accordance with the evaluation criteria outlined in the bid documents.
Mr. Browny Mutrifa, Chairperson of the Review Panel, expressed frustration over the repeated submissions of this matter, stating, “There is an inconsistency in the reasons provided by the Bid Evaluation Committee for disqualifying the applicant.”
Mutrifa highlighted that the CPBN had exceeded its mandatory requirements during the evaluation of China Construction Company Ltd JV Profile Investments Ltd.’s bid. He noted that the committee disqualified the bid due to the company’s financial statements not being audited by an auditor registered with the Public Accountants and Auditors Board (PAAB), a requirement he deemed non-material.
Furthermore, Mutrifa criticized the CPBN for frequently changing the evaluation criteria, noting that the financial ratios of the bidders had been inconsistently assessed.
The tender in question involves the supply and delivery of rails, turnouts, and stop blocks for the Northern Rail Extension Phase 3, covering the route between Ondangwa and Oshakati, as well as the upgrading of the Southern Railway Line section between Sandverhaar and Bunchholzbrunn. This project, valued at half a billion Namibian dollars, attracted five bidders and closed on November 14, 2023, for a short-term contract of 12 months.
Three bidders—Adaptive Building Land Construction CC JV China Engineering Construction Corporation LLC, A&P Engineering E-Supplier and Services CC, and Ready Mix Investment CC—were disqualified at the preliminary stage. Luka Roads Rails and Civils CC JV Voestalpine Vea Sa (PTY) Ltd, viewed favorably by the CPBN, was disqualified at the third stage of the seven-stage evaluation process.
China Construction Company Ltd JV Profile Investments Ltd was the only bidder to reach the financial evaluation stage. The CPBN has faced accusations of failing to cancel the tender after China Construction Company successfully contested an earlier cancellation.
Insiders at the CPBN have revealed that the board intends to give Luka Roads Rails and Civils CC JV Voestalpine Vea Sa (PTY) Ltd another chance by re-evaluating its bid, a decision that contradicts the Review Panel’s order from October 4, 2024. Notably, Luka’s bid is N$ 150 million higher than that of China Construction Company.
Many within the CPBN are perplexed as to why the board would favor a bidder that has failed early in the evaluation process, especially given the additional costs to the government.
Although unverified, there are strong allegations that some board members at the CPBN may have a financial stake in the additional N$ 150 million.
Inquiries sent to the CPBN last Friday remain unanswered as of publication.
An urgent CPBN meeting is scheduled for Tuesday, November 5, 2024, to potentially provide a lifeline to Luka Roads Rails and Civils CC JV Voestalpine Vea Sa (PTY) Ltd, despite the legal complications.
According to Subsection 55 (4A), unsuccessful bidders must submit an application for reconsideration within seven days of disqualification. Luka Roads Rails and Civils CC JV Voestalpine Vea Sa (PTY) Ltd has not submitted such an application, despite being informed of their unsuccessful bid on March 7, 2024 .— Namibia Daily News
