Interested parties to manage the Bulk Fuel Storage Facility at Walvis Bay will be called to submit their tender bids once the Cabinet committee looking at the matter maps the way forward, Finance Minister,
Calle Schlettwein, said this week dispelling rumours that the project will be single sourced.
“That is the law; it has to go through tender,” Schlettwein told the Windhoek Observer upon inquiry.
Construction of the facility is expected to be completed in August.
Schlettwein confirmed that Swiss firm, Vitol SA, had made an unsolicited proposal to the government to operate the facility, which is owned by Namcor.
“The proposal is there, it was submitted to Cabinet. There is nothing wrong with that. It is important that Cabinet looks at that.”
He, however, could not give a time framework when the Cabinet will make its decision, but said the matter was a top priority.
Media reports had suggested that the Bulk Fuel Storage Facility may be single sourced to the Swiss based firm outside the normal public procurement system, an assertion that Schlettwein denied.
“That is a story that is being cooked up by someone with other interests,” the minister said.
Central Procurement Board Communication Specialist, Abigail Kandetu, confirmed that the Ministry of Mines and Energy and Namcor are yet to submit the tender sourcing for companies to manage the storage facility.
“On the outsourcing of fuel storage facilities, it is a matter which still needs to be brought to the attention of the Central Procurement Board, provided of course the set prescribed thresholds are to be exceeded by the public entity,” Kandetu said.
When completed, the Bulk Fuel Storage Facility will be able to store 70 million litres of petroleum products such as petrol, diesel, paraffin and others, on behalf of the government. The project is expected to cost N$5.6 billion.
The Namibian reported recently that Vitol SA had offered to pay government US$1 (about N$11.70 million) per year to rent the N$5.6 billion fuel storage facility at Walvis Bay for 10 years.
Schlettwein confirmed the figure, but said submitting a proposal does not necessarily mean that government would accept it.
Meanwhile, Kandetu said the board has received and handled more than 14 tenders from public entities on transitional matters and extensions since its inception in April last year.
The board has also assisted in the vetting of Individual Procurement Plans and bidding documents.
“Tenders under review and disputes are being handled by the Review Panel, which is independent from the board,” she said.