TransNamib says it anticipates accessing the N$2.6 billion loan co-financed by the Development Bank of Namibia (DBN) and Development Bank of South Africa (DBSA) by the end of 2024, once all requisite process and conditions are met.
TransNamib acting CEO of Webster Gonzo said on Wednesday that there are some conditions that the rail operator company was supposed to meet before they can actually receive the funds.
He said the company cannot undertake the process on its own due to the significance of the loan amount and has had to seek services of a lender technical adviser.
TransNamib was granted a loan by DBN and DBSA in 2022, as means to bailout the financially troubled parastatal as well as to assist it implement its turnaround 2023-2028 Integrated Strategic Business Plan.
“It is only a question of when we are going to start the draw-downs of getting the actual funds in our hands, and implement the processes and strategies as planned.
We are at the very end of the process, we had to appoint a Lending Technical Adviser, because dealing with N$2.6 billion you need to have an adviser to guide you on how the process is going to work,” said Gonzo.
“For those of us who have dealt with such a significant amount of money, you need to go through a checkbox exercise to meet the terms and conditions of handling such huge funds. And we are right at the end to finalise and execute with the Lender Technical Adviser. This is an important aspect because there is no way we can begin without ensuring everything is in order as required by the banks.”
He said within the course of this year, the rail operator intends to procure 25 more locomotives and 300 tankers and wagons.
“We did not have enough pooling power before. In addition, we shall also procure 300 tankers and wagons in order to be able to poll whatever that needs to be pooled within our operations. That process is paramount as we make sure that it is synchronised with the line ministries, procurement board and the banks for transparency, and this will be officially announced in the next few months,” said the Acting CEO.
In addition, Gonzo said TransNamib is planning on reengineering one locomotive to run on dual fuel, which is fossil and renewable, adding that they are at an advanced stage in achieving that.
In September last year, Gonzo highlighted that the national rail operator planned on turning its fortunes from the envisaged procurement of 10 locomotives estimated to cost N$800 million and the remanufacturing of its rolling stock.
Now with an increased number, TransNamib is likely to spend over a billion in aiding and replacing its aging fleet.
At the one locomotive was estimated to cost approximately N$80 million.
“The confirmed loan will mainly focus on the remanufacturing of our rolling stock as well as buying 10 new locomotives. With funding secured, TransNamib is now focused on improving its locomotive capacity,” he said then.
In May 2023, TransNamib had also revealed that 22 trains earmarked for re-manufacturing, while it boasted a fleet of 25 operational locos, whereas an additional 13 were under repair.
With these troubles, Gonzo highlighted the need for the government to make more investments in developing the rail infrastructure on Wednesday, at a meeting with Work and Transport Minister, John Mutorwa.
He said the investments will enable TransNamib to operate smoothly thus addressing some of its internal challenges, and by extension providing enhanced logistics services.
