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Nampower Localised Preferential Procurement Increased By N$87 Million

By:Nghiinomenwa-vali Erastus
Nampower has procured more from local entrepreneurs, especially those that are owned by previously disadvantaged Namibians, during the 2022 financial year.
According to the power utility’s annual report, the company has increased its localised preferential procurement by N$87 million, compared to an increase of N$1.3 million in 2021.
As a result, the company channelled N$139 million on localised preferential procurement.
This is in the midst of various public entities’ claims of lack of capacity within the local contractors and opting to spend money generated locally to outside markets.
Furthermore, the call has been enhanced by a construction sector representative that has been calling for procurement to prioritise local contractors to keep jobs, and the dollar circulating within the economy.
Nampower explained that the substantial increase during the year was due to certain procurement undertakings being set aside for the previously disadvantaged Namibian (PDN)- compliant entities.
The Omburu PV Power Project, which has just been operationalised, had set-aside procurement activities for local entities of 37% of the project value, with the contractor exceeding this target by 6.75%, and spending 43.75% of the contract value on local content by year-end.
This amount to N$138,7 million spent on local content for the construction of the power station, Nampower revealed.
In addition, there are set-aside initiatives on the Anixas II Firm Power Plant Project which will amount to N$ 339,1 million ( 25.37%)on local PDN and local economy expenditure.
These activities are planned to be actualised in the current financial year.
The utility explained it is committed to inclusive procurement principles and practices and developing local supply chains that can support businesses with a recognised PDN-compliant status.
This is embedded in NamPower’s Equitable Economic Empowerment Policy (NEEEP) which guides the utility approach to inclusive procurement and seeks to increase the participation of PDNs.
Thus, the utility procurement section continued to champion the utilisation of NEEEP in all categories of NamPower’s procurement methods during the year, with specific scoring criteria incorporated in the bidding process.
In cases of weak domestic capacity, the utility proposed joint ventures with PDN-owned entities.
“If these requirements cannot be enforced, joint ventures, as well as awarding subcontracts within more complex projects to previously disadvantaged entities, are encouraged.” the power utility said.
The principles of the NEEEP are underpinned by five core empowerment pillars upon which the scorecard is based- aimed at building inclusive procurement and local supply chains.
These pillars are ownership, management control and employment equity, human resources and skills development, entrepreneur development and community investment.
Nampower has also vowed to invest in capacity-building initiatives in support of sustainable socio-economic development.
While greater participation of NEEEP-compliant ventures in NamPower’s procurement will be encouraged, and opportunities for executing capital projects will be maximised.
In addition, the power utility said opportunities will be given to the transfer of skills during project execution. Email:

Nghiinomenwa-vali Erastus

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