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Home Business & Economy

Namibia finalising Trans-Kalahari railway tender award

by editor
January 29, 2024
in Business & Economy
28
A A

The Namibian government says it is working on finalising the awarding of the Trans-Kalahari railway tender to connect with Botswana before the end of the year.

Minister of Works and Transport John Mutorwa said a thorough report on the progress made will be revealed this week during a workshop to be held at Swakopmund.

“Namibia and Botswana are working very hard, and there is a lot of enthusiasm, whereby we are busy appointing the best bidder following the advertising of the expression of interest tender last year, and I can confirm that we are making good progress. Hopefully, by the end of the year all these tendering processes are finalised, so that we can have that project ready for implementation, and in so doing, irrespective of the outcome of the elections this year, nothing can be done to reverse it,” said Mutorwa.

The rail tender that closed in November 2023, attracted 12 international and local companies.

The railway line will stretch for about 1,500km and will be undertaken on a design, build, finance, operate, maintain and transfer contract basis.

This means, investors would fund the feasibility study and develop the proposed new railway corridor and/or upgrade the existing railway between the two countries.

Helo Group, West Coast Energy, Fullbright Investment, Grindrod and Mega North Holdings, were Namibia companies that showed interest in the rail tender.

International players that have shown interest include French multinational company NGE Contracting, Chinese firm China Civil Engineering Construction Corporation and Egypt’s Orascom Construction.

Other companies include India’s Rail Vikas Nigam Limited, as well Lesedi Nehawu Investment JV, Trans-Kalahari Railway Initiative Consortium, Nations Capital Projects Pty (Ltd), and Seven Five Investments CC, all from South Africa.

Mutorwa also shared the latest development on the extension of the railway line from Grootfontein-Katima Mulilo leading into Zambia and Botswana, saying the feasibility study has been completed and approved by the Cabinet.

“Through the Cabinet committee on treasury we gave the responsibility to the Works and Transport Ministry and TransNamib to come up with a funding strategy for the railway. That report has been submitted to me and the Minister of Finance and Public Enterprises, we shall then scrutinise and take further action,” he said.

The feasibility of the nearly 800km stretch was conducted by Canadian-based company MR Technofin Consultants Ltd, co-funded by Namibia and the African Development Bank, which recommended that the railway line is viable from a technical, environmental, legal, financial and economic aspect.

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