Airport upgrade tender set aside

The project to upgrade and expand the Hosea Kutako International Airport is in limbo after the Supreme Court declared that it was granted to a Chinese company in contravention of Tender Board procedures. The awarding of the tender has been set aside. However, the Supreme Court upheld the High Court decision to set aside the minister’s directive to cancel the tender in its entirety. The Namibia Airports Company (NAC) awarded the tender in December 2015 to upgrade and expand the international airport to the tune of about N$6.2 billion at the current exchange rate. This decision was later revoked by President Hage Geingob, who ordered the ministry of works to discontinue all activities relating to the project. This matter was later challenged in the High Court, with Anhui Foreign Economic Construction Group, seeking review of the decision of the president to cancel the tender. Anhui succeeded in September last year after Judge Shafimana Ueitele found that the minister of works had not acted in accordance with the Namibia Airports Company Act. He also found that the minister did not exercise his own discretion when carrying out the presidential instruction to cancel the tender. Geingob as well as the ministers of finance and works appealed a High Court judgement of September 2016 which set aside as invalid, instructions directing the Namibia Airports Company (NAC) to halt tender processes for the upgrade of the Hosea Kutako International Airport. “The valid procurement in capital projects involving government had not been followed nor had treasury approval been granted,” a full bench of the Supreme Court comprised of Chief Justice Peter Shivute and appeal judges Dave Smuts and Sylvester Mainga ruled.

STAFF REPORTER