Chinese firms stop work amid financial woes

Two Chinese companies responsible for the bulk earthworks for the construction of the railway line between Ondangwa and Oshakati have reportedly stopped work due to non-payment.

The 14-km bulk earthworks construction tender from Omaalala to Ondangwa is worth N$125 million and was awarded to China State Construction Engineering and Abland Engineering and Construction.

A source privy to the affairs of the construction work said the two companies stopped work due to non-payment by the government.

“Government failed to pay the invoices submitted by the Chinese contractors for the work they had done last year and they decided to down their tools at the beginning of the year.

“Now we are hearing that government has sorted out their issue and they are due to resume their duty very soon,” said a source, who requested anonymity.





In 2014 the government allocated almost N$300 million for the bulk earthworks tender for the 35km railway line extension from Ondangwa to Oshakati.

The first phase included construction work of about 14km from Oshakati to Omaalala, which was carried out by Road Heart Construction Company in 2015 to the tune of N$120 million.

Work was completed at the beginning of 2016.

The second phase included the construction of the N$40 million railway bridge at Okapya outside Ondangwa, which was completed by Nexus Construction at the beginning of last year.

In mid-2016 the construction for the third phase by the joint venture between China State Construction Engineering and Abland Engineering and Construction started, but work abruptly stopped at the beginning of the year.

In June last year Founding President Sam Nujoma spent a week doing voluntary work at the railway project, where he was joined by local community members and high-ranking officials.



Oshana governor Clemens Kashuupulwa disputed that work had stopped due to non-payment. He claimed the delay was as a result of an exchange of construction phases.



Kashuupulwa said the nation was blaming everything to the current economic situation without knowing what was going on.



“The railway work will not stop, as it will be done in different phases. The construction of the first phase has been completed and they have to go to the second phase that needs to go through a tender allocation and get the successful bidder,” Kashuupulwa said.



He said the government had budgeted enough money for the project and there was no way the work would stop.



“It is only that currently we are just saying that the government has no money because of the economic situation that is going on in the country. Those are ongoing projects and can cover many financial years. The government is committed to make sure that the railway work is completed,” he said.



The governor's version was, however, contradicted by Ondangwa constituency councillor Kawushiweni Abraham, who said the issue that was holding up work had been resolved and that the Chinese would resume work this week.



After the completion of the bulk earthworks, two tenders will be advertised for the construction of a railway station in Oshakati and for the laying of the rails.