TIRI MASAWI
The Ministry of Health and Social Services has reversed its decision to cancel the N$194 million Central Medical Stores (CMS) tender, paving the way for the project to proceed.
The project involves the construction of a new Central Medical Stores facility and the refurbishment of existing warehouses in Windhoek. First advertised in October 2025, the tender closed on 13 January 2026.
Funded through a N$194 million grant from the Switzerland-based Global Fund, the procurement was halted in March despite the Central Procurement Board of Namibia having already completed its bid evaluation report. The cancellation came amid allegations of political interference aimed at favouring a particular company.
However, the latest documents show that the health ministry has now made a U-turn and wants the procurement process to continue towards the awarding stage but with new conditions.
In a letter dated 26 May, executive director Penda Ithindi informed the Chief Executive Officer of the Central Procurement Board of Namibia (CPBN), Idi Itope, that the ministry was withdrawing its earlier cancellation request.
Ithindi stated that the ministry was now reversing that position and instructing that the process continue.
“The Ministry is hereby retracting the cancellation request in the said letter and is hereby requesting your office to continue with the awarding process of the Bid,” he said.
While proceeding with the project, the ministry has imposed strict conditions on delivery timelines and contractor suitability.
“This is on the considered condition that the successful bidder has the capacity to complete the main CMS building in a period not more than 18 months with allowable 2 months for testing. This completion period must be explicitly stated in the award contract,” Ithindi said.
The ministry further instructed that only experienced and financially capable contractors be considered for the award.
“In this respect, the Ministry is requesting to consider bidders that have the experience in both Earth Works and construction of large capital projects as well as the financial capabilities to complete the work,” he said.
In the meantime, the ministry said it will continue to use the Rhino Garment Factory building at Ramatex for pharmaceutical storage and related health sector needs.
“The Ministry will continue to utilise the Rhino Garment Factory building at Ramatex to enable it to optimise available public asset space for the storage of pharmaceuticals and other alternative uses in the health and social services sector,” Ithindi said.
BIDDERS
Several local and international construction companies have submitted bids for the project, with prices ranging from about N$174 million to over N$210 million.
The joint lowest bids with N$174 million came from Ongoma Trading Enterprise JV SCEGC and another company called Adaptive Building Land Construction JV China Civil Engineering.
Ongushe Investments JV Kunene River Construction Investment bid roughly N$175 million, while Oshilongo Investment JV One Centre Trading and New Era Investment JV Summit Trading both submitted bids of about N$177 million.
Other bidders included NGC Investment at around N$178 million, China Jiangxi International JV Sika Investment at roughly N$178 million, and Supeco Trading at about N$181 million.
Punchu Trading JV Unik Construction Engineering Namibia, which is known to have constructed Swapo’s headquarters, bid around N$184 million, while China Jiangsu International JV Optiver Trading came in at about N$185 million.
Higher bids were submitted by Vega Investment JV Heeno Tunga Investment at around N$189 million, ID Building Contractor at about N$191 million, Blueberg Trading Enterprise JV China Railway Seventh Group Namibia at roughly N$204 million, and Palladium Civil Engineering at around N$205 million.
Otesa Civil Engineering submitted a N$209 million bid, while the military-owned August 26 Construction asked for N$210 million.
Questions sent to the Ministry of Health and Social Services were not answered.
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