The Ministry of Finance and Public Enterprises says the government has earmarked N$6.6 billion for railway network development over the Medium-Term Expenditure Framework (MTEF).
Minister of Finance and Public Enterprises Iipumbu Shiimi said the government has made provisions to the tune of N$2.5 billion in FY2024/25 towards railway infrastructures, consisting mainly of N$1.9 billion for the upgrading of the Kranzberg-Otjiwarongo railway section.
“Similarly, N$488 million for the rehabilitation of the Sandverhaar-Buchholzbrunn railway section in the south. In this context, critical sections of the national railway line are in a state of disrepair and will thus enjoy attention from a funding perspective over the MTEF,” he said during the budget announcement for the FY2024/25.
He added that the allocations are further complimented by operational funding, a dedicated loan facility to purchase rolling stock as well as ongoing efforts to improve governance at TransNamib.
Meanwhile, N$300 million has been provided for TransNamib to support their day-to-day operations cognisant of significant infrastructure and operational challenges.
This comes after the African Development Bank Group (AfDB) approved a loan of N$3.7 billion (US$196.43 million) for Namibia to implement the second phase of its Transport Infrastructure Improvement Project.
The project is estimated to cost N$7.1 billion (US$$379.12 million). The loan, approved on 31 October 2023, represents 51.8% of the project’s total cost, while the Namibian government will provide the remaining 48.2%.
The project entails constructing 207km of new rail track close to the existing line between Kranzberg and Otjiwarongo, using concrete railway sleepers and new rails.
The works include constructing 16 bridges, renovating two stations, and procuring 55,000 tonnes of rails to build 518 kilometres of track.
