Contested N$122m FMD fence awarded as outbreak hits 11 farms

A N$122 million border fence meant to keep foot-and-mouth disease (FMD) out of Namibia has been awarded in a process being challenged in court, while the disease has now spread to 11 farms in ||Kharas.The Central Procurement Board of Namibia (CPBN) handed the contract to Punchu Trading CC JV China State Construction Engineering Co. Southern Africa (Pty) Ltd through emergency procurement, after scrapping a competitive tender in which another bidder had ranked first.The fence comprises 155 km along the Orange River and 30 km between the Klein Menasse and Mata Mata border posts.The fence was identified as a preventative measure against the growing FMD threat, but delays in procuring it meant construction was not finished when the disease was detected in ||Kharas on 22 September.The outbreak is still growing. Agriculture minister Inge Zaamwani said on Saturday that 79 of 531 samples tested in the latest round of surveillance were positive for FMD across 11 farms, and that government estimates N$190.2 million will be needed for the containment response.This includes approximately N$47 million for a new disease-control fence of about 290 km along a proposed route from Ariamsvlei through Karasburg to /Ai-/Ais to cordon off the infected zone, Zaamwani said.Veterinary officials have inspected about 15 000 animals on 61 farms, with further inspections planned, the minister said.“The detection of FMD within the recognised free zone has resulted in the suspension of the country's relevant FMD-free status, with significant implications for international market access and trade," Zaamwani said.“As the epidemiological situation develops, the ministry will include the vaccination of eligible livestock within the designated containment zone in Karasburg, together with targeted culling, intensified surveillance and strict movement controls.“The proposed vaccination approach will move from the periphery of the containment zone towards the epicentre,” she said.Tender awarded despite challengeCPBN spokesperson Johanna Kambala confirmed that Punchu Trading JV was awarded the contract for N$122 088 331.88, including VAT."This contract was awarded through emergency procurement as per the notice of award issued on 7 September 2026,” she told Namibian Sun last week.The tender was issued on 22 June for the construction of 155 kilometres of fencing along the Orange River and another 30 kilometres between the Klein Menasse and Mata Mata border posts.Twenty-three companies submitted bids, with 11 proceeding to financial evaluation.A CPBN bid evaluation committee report dated 18 August, seen by Namibian Sun, ranked China Jiangxi JV Homefin first.Its actual bid was about N$126.4 million, including VAT, but its evaluated price fell to about N$120 million after a margin of preference was applied, while Punchu Trading JV ranked second.The evaluation report stated that the contract should be awarded to the lowest evaluated substantially responsive bidder.CPBN subsequently cancelled the competitive process and switched to emergency procurement, awarding the contract to Punchu.China Jiangxi JV Homefin is challenging the cancellation and subsequent emergency award in court and wants the decisions reviewed and set aside.“The circumstances surrounding the cancellation, and subsequent award were highly irregular, something peculiar – at worst symptomatic of corruption and at best malfeasance – that happened,” the company alleges in court papers.Ministry warned of delaysThe court proceedings have also revealed that the agriculture ministry itself was concerned that procurement delays could leave Namibia exposed as FMD moved closer to its southern border.On 3 September, agriculture ministry acting executive director Petrus Nangolo advised CPBN that the situation had become increasingly urgent.The ministry said outbreaks in South Africa were approaching Namibia faster than initially anticipated, while falling water levels in the Orange River were increasing the possibility of livestock moving across the border.CPBN chairperson Mary Shiimi said in court papers that the ministry warned that further delays in securing and constructing the fence would materially undermine the purpose for which the procurement had been initiated.Agriculture ministry spokesperson Romeo Muyunda previously warned cattle roaming along the Orange River border had been identified as a potential risk and that the fence was consequently regarded as a preventative and precautionary measure.The cost of the FMD warThe N$190.2 million containment programme includes vaccination, targeted culling, increased surveillance and tighter controls on livestock movements, in addition to the N$47 million earmarked for disease-control fencing.Zaamwani warned that the financial consequences extend beyond government's containment costs.“This development presents challenges for farmers, livestock producers, exporters, abattoirs, meat processors and other businesses that depend on access to domestic and international markets,” she said.Zaamwani said the government recognised the consequences of culling for affected farmers but argued that it remained necessary to limit transmission.“We recognise that the destruction of livestock has serious consequences for the farmers concerned. Nevertheless, these interventions must be assessed in the context of protecting the wider livestock population and preventing further transmission.”Billions at riskThe World Organisation for Animal Health has suspended Namibia's recognised FMD-free status for the affected free zone, leaving farmers, abattoirs, processors and exporters facing uncertainty over how long the disruption to livestock trade will last.A Simonis Storm assessment reported by Namibian Sun last week estimated Namibia's annual beef exports at about N$5.7 billion and warned that a six-month disruption could result in export losses of between N$2.5 billion and N$3 billion.EU ambassador to Namibia Ana Beatriz Martins commended Namibia's response to the outbreak, describing the authorities' handling of the situation as swift, transparent and professional.“Foot-and-mouth disease is highly contagious and can have serious consequences for livestock, farmers’ livelihoods and the wider economy,” Martins said.She said the EU stood ready to engage with the Namibian government and veterinary authorities while its health and food safety services assessed the outbreak.

Contested N$122m FMD fence awarded as outbreak hits 11 farms

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Namibian Sun 2026-10-05

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Contested N$122m FMD fence awarded as outbreak hits 11 farms

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Namibian Sun 2026-10-05

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