AVIC Rejected from Namibia Airport Road Project

On August 12, the Namibian Roads Authority reviewed bid recommendations for phase 2A of the Windhoek-Hosea Kutako International Airport road upgrade in Namibia.  In this process, the agency reportedly rejected the submission of AVIC International, due to concerns that the bid was artificially low and that costs would be increased later once the contract was awarded.  The same issue arose with China State Construction Engineering Corporation (CSCEC).  Authorities also labeled CSCEC, however, as a technical risk, citing its previous issues with quality control and project delays on other Namibian projects.  CSCEC refuted these accusations.  The Namibian Roads Authority instead recommended another Chinese company, Zhong Mei Engineering, which bid of $78.5 million.

AVIC has also faced controversy in neighboring Zambia, where the company was recently reprimanded by President Edgar Lungu.  Lungu said, “AVIC, I am told you are even boasting you have got me in your pocket.”  AVIC’s rejection from the bidding process for the airport road project come days after another Chinese company, China Harbor Engineering Company, successfully completed a container terminal construction project at Walvis Bay, Namibia’s main port.