Naloba reports NamPower to Amutse

The Namibia Local Businesses Association (Naloba) has raised concerns over what it describes as unfair and exclusionary conditions in NamPower’s N$1.5 billion tender for six 20 MW solar photovoltaic plants — a claim the power utility has firmly rejected.

The 120 MW programme forms part of Namibia’s drive to expand local generation capacity and reduce reliance on electricity imports. Each of the six projects is estimated at about N$260 million.

In a letter dated 10 February 2026 and addressed to Industrialisation, Mines and Energy Minister Modestus Amutse, the association argues that the timing of the bid unfairly disadvantages local players. The tender was advertised in mid-November 2025 and is set to close tomorrow – 6 March 2026.

According to Naloba, December and January are largely holiday months, during which key institutions such as regional and national land boards — responsible for issuing leasehold certificates — are in recess. This, Naloba says, makes it “impossible” for bidders to secure the land rights required under the tender conditions within the stipulated timeframe.

The association further takes issue with the scoring criteria, noting that bidders who already own land or have lease agreements within a 50-kilometre radius of designated substations receive maximum points. It argues that this favours pre-positioned developers and risks sidelining local entrants who did not have prior knowledge of the project locations.

Environmental compliance concerns

Naloba has also questioned the requirement that bidders demonstrate advanced environmental readiness.

Under the tender conditions, developers must show that they have engaged and formally appointed an environmental assessment practitioner, submitted a screening or scoping report to the ministry of environment, and obtained a final environmental impact assessment (EIA) report.

The association described these requirements as “alarming”, suggesting that such preparatory steps would ordinarily only be undertaken once a bidder has reasonable certainty of being awarded a project.

“At which point are developers required to conduct EIAs or even engage environmental assessment practitioners, unless the bidders who meet these requirements were well tipped off?” Naloba asked, alleging that the structure of the bid creates an uneven playing field and may ultimately undermine competitive pricing and affordable tariffs.

It also questioned why a tender of such magnitude was not being handled by the Central Procurement Board of Namibia, given its value.

NamPower rejects claims

Responding via email to Namibian Sun yesterday, NamPower managing director Kahenge Haulofu dismissed the allegations.

“There are no prejudicial or favouring criteria embedded in the process, nor have any discretionary actions been taken to advantage or disadvantage any bidder,” Haulofu said.

“The process is objective, policy-driven and fully compliant with applicable legislation. NamPower remains committed to a transparent, lawful and competitive procurement that delivers timely, affordable and reliable electricity in the national interest.”

Haulofu said the programme is being implemented under a fast-tracked directive aimed at urgently boosting generation capacity and achieving 80% electricity self-sufficiency by 2028, in line with the National Development Plan (NDP6) and the National Integrated Resource Plan.

“The objective is straightforward: to deliver 120 MW of utility-scale solar within defined timelines to support supply security, least-cost procurement and system stability. Any deviation from the established framework would undermine that mandate,” he said.

Risk allocation and readiness

Haulofu added that both established and emerging industry players had long anticipated NamPower’s request for bids following the ministerial determination to procure the 120 MW across six substations.

“Experience from previous procurements shows that delays often result from insufficient project readiness and poor risk allocation. The risk structure in this programme is deliberate and consistent with the IPP [independent power producers] model, covering land acquisition, permitting, environmental approvals, financing and technical design — all of which are commercial risks bidders must bear,” he said.

He stressed that the procurement is designed to secure projects ready for rapid development and construction under accelerated timelines. Technical criteria account for 30% of the evaluation score, while financial criteria make up 70%, ensuring that least-cost supply remains the dominant factor.

Following award, preferred bidders will have 12 months to finalise development activities — including land acquisition, site studies and financial close — and a further 12 months to complete construction and commence operations.

Tender period and exemption

Haulofu also rejected claims that the tender period was inadequate.

The bid, advertised on 17 November 2025 and closing on 6 March 2026, was extended by four weeks to accommodate the December holiday period, he said.

“The period provided exceeds the 30 working days required under the Public Procurement Act. Extending it further would not meaningfully advance project readiness,” Haulofu stated.

On the question of oversight, he confirmed that NamPower had obtained a procurement threshold exemption from the Ministry of Finance, allowing it to conduct the process internally under the Public Procurement Act of 2015 rather than through the Central Procurement Board.

“Prior to issuing the bid, NamPower secured all project-specific approvals and consents to ensure compliance with applicable legal, regulatory and governance requirements,” he added. - n[email protected]