NAMWATER, and the Metropolis of Windhoek have failed the evaluation for autonomy to acquire past the prescribed threshold.
Minister of Finance Iipumbu Shiimi introduced on Tuesday that solely NamPower has satisfied the Ministry of Finance via the Public Procurement Unit (PPU) that it’s able to procuring high-value contracts with out going via the Central Procurement Board of Namibia (CPBN).
The exemption was granted in step with Part 4 of the Public Procurement Act, 2015 which gives that: the minister could, with or with out situation, decide and grant a basic or particular exemption by means of a directive for particular sorts of procurement.
A public procurement decongestion venture was born out of suggestions of the excessive degree panel on the Namibian economic system.
The panel revealed that the congestion at CPBN harmed financial growth and development because it delayed contract awarding and consequently delayed spending and movement of cash within the economic system.
A Procurement Capability Evaluation for Public entities as a part of the bigger public procurement decongestion venture was launched final 12 months after assessing particular areas of public entity capability.
From November 2020 to early this 12 months, three public entities particularly, NamPower, NamWater and the Metropolis of Windhoek have been assessed.
“From these assessments, NamPower scored favourably thereby demonstrating substantial capability each when it comes to human and institutional spheres in addition to a superb diploma of compliance throughout previous procurement processes which have been drawn for the audit,” stated Shiimi.
“NamPower has due to this fact been thought of as eligible for a brief, but conditional exemption from part 8 of the Public Procurement Act, for 2 years,” the minister stated.
Successfully, NamPower is permitted to internally undertake procurement above values supplied for underneath class one for public entities, with out referring such to the CPBN for execution, he added.
NamWater and Windhoek municipality must undergo the CPBN for his or her huge procurement as their present techniques can’t be trusted to acquire internally.
Shiimi defined that expediting procurement by NamPower amongst different strategic public entities, will go a good distance when it comes to public service supply, and contribution to the infrastructural funding required for financial development and growth.
He added that the exemption will relieve the CPBN of some overload, permitting the board to effectively and successfully deal with procurement from different public entities which haven’t been exempted.
Shiimi stated it is not going to be a wild west for NamPower, as they are going to be subjected to direct supervision and monitoring by PPU for all procurement which ordinarily would in any other case be executed by the CPBN.
Failure to conform by NamPower will outcome within the withdrawal of the exemption.
NamPower is increasing the nation’s era capability, with initiatives to be developed via Engineering Procurement and Development (EPC) initiative and will likely be owned and operated by NamPower.
This entails huge initiatives just like the 40 MW Lüderitz Wind Energy Undertaking, 40 MW Otjikoto Biomass Energy Undertaking, 50 MW Agency Energy (Anixas II) Undertaking.
Along with the initiatives highlighted above, NamPower is within the technique of implementing the primary utility-scale battery storage venture in Namibia.
That will likely be integrating a Battery Power Storage System (BESS) into the transmission community to help the event and uptake of renewable vitality crops within the nation.
NamPower has launched into a complete of 33 new capital initiatives price an estimated N$280 million and 19 new working initiatives price N$130 million with implementation began final 12 months.
Whereas hourly demand (MW) slowed down final 12 months to 629MW from 633MW in 2019, excluding Scorpion mine – the decline may very well be attributed to the slowdown in financial actions final 12 months.
The price of electrical energy elevated by 7,9% from N$3,9 billion achieved in 2018/19 to N$4,2 billion for 2019/20.
NamPower has additionally revealed the nice rainfalls resulted in a rise in native era of 41% in 2020 in comparison with 29% in 2019.
In consequence, there was a lower in imports from 71% in 2019 to 59% in 2020.
Power Feed-in Tariff (REFIT) via Unbiased Energy Producers (IPPs) recorded a rise of 11% of extra native provide from 2019 to 2020.
By the tip of June final 12 months, Power Provide Composition included 7% from IPPs which is equal to what NamPower purchased from the SAPP.
Underneath the REFIT buying energy agreements contracts, NamPower bought energy at an inception tariff of N$1,37/kWh (photo voltaic) and N$1,08 kWh (wind), which is adjusted yearly on 1 July with the Namibian Client Value Index (CPI).
The excess era enabled NamPower to export electrical energy via the Electrical energy Buying and selling Market of the Southern African Energy Pool (SAPP), producing N$479 million.
This implies extra native era can result in the nation exporting to the regional market via the SAPP.
The hunt is now so as to add 150 MW to the era capability of the nation, which might additionally open up extra off-taker agreements with IPPS.
As of the tip of June 2020, purposes for a complete of 105 GWh have been permitted by the regulator to function underneath the Modified Single Purchaser Market Mannequin.