TIRI MASAWI
The long-delayed Central Medical Stores project is finally set to start after the Central Procurement Board of Namibia (CPBN) and the Ministry of Health and Social Services signed a N$177.99 million construction contract.
The contract was awarded to New Era Investment (Pty) Ltd JV Summit Trading CC on Monday following the conclusion of a long procurement process.
The project involves building a new Central Medical Store (CMS) and refurbishing the existing warehouse.
The development comes after the original N$194 million tender was cancelled in April following a request from the health ministry. The ministry had said the expected outcome of the project did not justify the cost.
The cancellation also came amid allegations of political interference and concerns over the use of a N$194 million Global Fund grant meant for the project.
The ministry later reversed its decision, paving the way for the project to proceed.
The latest contract is worth about N$16 million less than the original N$194 million tender.
The new facility is expected to address the shortage of storage space for medicines and medical supplies.
The current warehouse has about 2,900 cubic metres of storage space. The ministry requires about 4,600 cubic metres.
This leaves a shortfall of about 1,700 cubic metres.
The project will also include office space and other infrastructure.
This includes storage racking, security systems, water, electricity and sewer systems.
CPBN board chairperson Mary Shiimi said the project is important for the country’s healthcare system.
“Medical stores play an instrumental role in ensuring that essential medicines and medical supplies are safely stored and made available to health facilities across the country.”
She said the project must be delivered efficiently and with value for money.
“It is therefore important that projects of this nature are delivered efficiently, with due consideration for value for money and the broader impact they have on the lives of Namibians,” Shiimi said.
Health ministry executive director Penda Ithindi thanked the CPBN for facilitating the procurement process.
He said the contract award was an important step towards improving Namibia’s medical storage capacity.
The facility will also help ensure that medicines and medical supplies are stored according to health, safety and quality standards.
“With the procurement process successfully concluded and the contract now signed, the Ministry of Health and Social Services is positioned to proceed with the implementation of the project,” Ithindi said.
The original tender was advertised in October 2025 and closed on 13 January 2026. The CPBN had already completed its bid evaluation before the ministry requested its cancellation.
The project is now set to move from a troubled procurement process to construction.
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