The recent announcement by power utility Nampower that it is opening up the bidding process for the construction and development of the Kudu gas project could open avenues for local engineering companies.
Considering that prequalification process will be completed by the end of the year when the country would also have finalised a public procurement law that is more inclined to favour affirmative action in Government projects, this is all by laudable.
In the past it would have been pretty difficult for locals to make inroads into lucrative tenders but moves from Government to empower locals through a redrafted public procurement law gives an opportunity for the engineering and transport firms with capacity.
The multibillion dollar Kudu gas project should be erected by 2017.
According to Nampower, local companies have potential to partner any of the big multinationals who have ability to erect the Kudu project through provision of transport and supporting activities.
Nampower which signed a Memorandum of Understanding with NAMCOR last week for the construction of the Kudu Gas project said the project will see locals given a chance in the supporting work.
Although there are not many companies with potential to construct a gas generation plant in the country, the multi billion tender issued out by Nampower could create partnerships between local companies and foreign companies.
According to Nampower local sub-contractors are being encouraged to take advantage of the various opportunities that the project will be offering through the provision of goods and services particularly during the three years construction period of the gas field infrastructure and the power station.
NAMCOR has 54% equity interest in Production Licence 003, together with partners Tullow Kudu Limited (31% Operator) and CIECO Namibia (15%).
Although there are potential lucrative opportunities in the Kudu, local companies also need to prepare themselves with the relevant skills in engineering that could see them reap maximum benefits.