A port expansion plan for the port of Walvis Bay worth an estimated N$3 billion has now been postponed indefinitely, following a decision by the Namibia Ports Authority this week to cancel the Engineering, Procurement and Construction (EPC) phase of the project.

This cancellation of the contract directly affects the China Harbour and Engineering Company (CHEC), which was the only company out of eight contenders shortlisted to tender for the port expansion project.
The port expansion plan makes provision for the construction of a man-made island in the sea on the southern end of the port of Walvis Bay on which a massive container terminal and a quay-side for container shipping will be established. The EPC only includes the civil engineering segment of the project.
At the time of going to press Namport decision-makers were still engaged in high-level talks over the finer implications of their decision, but through the grapevine it was established that funding was the main, if not the only, reason for the cancellation. The Chief Executive Officer of Namport, Bisey Uirab, explained yesterday that a statement would be issued in due course setting out all the details of the decision. Uirab warned that there is “false” information doing the rounds.
What Informanté could establish, in lieu of any official statement, was that the EPC was cancelled on the grounds that the search for funding for the expansion project is still ongoing. The ports authority does not want to contractually bind itself with an EPC that may deter possible funders who have different and unique requirements.
All indications are that the port expansion plan is not off the table. Once funding has been secured, the process will move forward again. What remains unclear though is whether CHEC, as the only shortlisted candidate, will be allowed to continue and whether the seven other contenders, all Namibian black empowerment entities with foreign partners, will be given another opportunity. Hyundai Engineering and Construction, the 23rd largest construction company in the world, is believed to be sharpening its knife for a second stab at bidding for this massive project.
The shortlisting of CHEC became a major source of discontent among other contenders some months ago and the matter briefly landed on the desk of the Director of Namibia’s Anti-Corruption Commission, Paulus Noa. Namport was cleared though of all accusations of dubious dealings with regard to CHEC and this major port expansion tender.