First National Bank (FNB) Namibia recently hosted the Central Procurement Board of Namibia (CPBN) for a stakeholder engagement aimed at strengthening cooperation on performance guarantees, a key requirement in public procurement.
The engagement brought together officials from the procurement board and the bank to discuss ways of improving efficiency, transparency and collaboration in the procurement value chain.
The CPBN delegation was led by its CEO, Idi Itope, while FNB Namibia was represented by its head of enterprise banking, Leonard Hamunyela, and manager of public sector, Priscilla Akudhenga. Performance guarantees are mandatory under Section 55(6) of the Public Procurement Act, 2015 (Act No. 15 of 2015), and must be submitted before a contract is awarded.
The guarantees serve as financial security to ensure contractors fulfil their obligations and complete projects as agreed.
During the engagement, FNB Namibia outlined the process involved in issuing performance guarantees, including application procedures, documentation requirements, credit assessments and processing timelines.
The discussions also focused on challenges often experienced by bidders when applying for performance guarantees and explored measures that could help streamline the process.
Both parties acknowledged the importance of strengthening cooperation between financial institutions and procurement authorities to minimise delays that may affect the implementation of public projects. Hamunyela said performance guarantees play an important role in supporting economic activity and ensuring projects are delivered on time.
“Performance guarantees are often seen as a compliance step, but they are a critical enabler of economic participation. When these processes are unclear or delayed, it is not just paperwork that is affected, but the pace at which projects move and opportunities are realised,” he said. He added that the bank remains focused on simplifying the process to help businesses participate more effectively in public procurement opportunities.
“Our focus is on simplifying and strengthening this process so that businesses can participate with greater certainty, and public sector projects can be delivered more efficiently,” Hamunyela stated.
The engagement forms part of the CPBN’s ongoing efforts to strengthen collaboration with stakeholders and improve the effectiveness of public procurement in Namibia.
FNB Namibia said it remains committed to supporting initiatives that promote transparency, accountability and economic growth while providing financial solutions that enable businesses to access opportunities in the public sector.
[email protected]
