WINDHOEK: Road Authority (RA) on Friday signed a contract agreement with 13 Development Contractors to maintain the Namibian gravel road network to the tune of N.dollars 706 million for the period of five years.
The works will be done in the Southern, Northern and Central parts of the country, RA’s Acting chief executive office Conrad Lutombi said this at the media briefing here on Friday.
Lutombi said the total of N.dollars 308 million will go to the contractors while remaining N.dollars 398 million will be spend on 26 small and medium enterprises (SMEs) to work with these contractors.
He said a total of five SMEs and three development contractors are from Windhoek, 10 SME and five Contractors are from Otjiwarongo, four SMEs and three Contractors are from Oshakati and seven SMEs and two contractors are from Keetmanshoop.
Lutombi said about 90 per cent of the tenders were awarded to contractors and SMEs from a previously disadvantage background.
“This is in line with our policy to develop SMEs in the road construction and maintenance sector. SME’s play an important role in the economic development of our country and they have a strategic importance as they contribute to creation of jobs and raising the living standard of the people,” the chief said.
Lutombi said this project will create over 250 jobs for people living in the areas where works will be done during the period of five years.
He stressed that the project will greatly improve the gravel roads as it will optimise all gravel roads lifespan and more importantly motorists will significantly benefit as well.
Lutombi further added that Road Authority is currently busy with a re-seal contract to the value of N.dollars 700 million for the entire Namibia for the period of three years.
He said the work will be executed in Windhoek, Maltahohe, Usakos, Outjo, Grootfointein, Oshakati, Katima Mulilo, Rundu, Opuwo, Keetmanshoop and Karasburg roads.
“The Road Authority is doing its level best with the limited funding to increase the number of re-gravel units in Namibia.” he said.
Lutombi said the system of maintaining the gravel roads is a step in the right direction in the efforts to build and maintain the country’s biggest asset which is the road network.
He encouraged development contractors and SMEs to perform their assigned duties in line with the set standards and maintain good quality roads in the country.