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Chinese firm wins case against airport tender cancellation by Namibian gov't

Xinhua, September 10, 2016 Adjust font size:

A Chinese construction company has won a case against the Namibian government who cancelled the company's successful tender of a 7 billion Namibian dollar (about 500 million U.S dollars) airport expansion project.

The tender was for expanding the Hosea Kutako International Airport road. Hosea Kutako is Namibia's biggest airport and is about 50 kilometers from Windhoek.

The tender cancellation by the government in December 2015 prompted the winning bidder, Anhui Foreign Economic Construction Group, to challenge the decision in the High Court in February this year.

Namibian President Hage Geingob cancelled the tender citing irregularities in the manner it was awarded by the Namibia Airports Company.

However, the High Court on Friday ruled that the cancellation was "unlawful and therefore invalid and set aside."

The Namibia Press Agency also reported Friday that the government suffered another setback when the High Court dismissed its counter aplication in connection with the matter.

The government was then ordered to foot the legal bills of the construction company, which include the cost of one instructing attorney and one instructed counsel, on top of having to pay its own legal representation, it reported.

In its papers, the company argued that it had already incurred costs negotiations, revisions undertaken, financing arrangements and negotiating with the Namibian workforce after winning the tender in 2014.

The company also cited time consuming processes as it took over an 18-month period just to win the tender.

The company further argued that even though Geingob decided to cancel the tender, he together with his predecessor, former President Hifikepunye Pohamba was involved in supervising the ultimate decision on the project.

The company wanted the court to review and set aside the decision by works and transport minister Alpheus !Naruseb to discontinue all activities related to the upgrading and expansion of the international airport. Endit