Namibian Works and Transport Minister, Veikko Nekundi, has said the country’s railway operator, TransNamib, will have to come up with new timelines on the purchasing of 23 new locomotives after he had earlier cancelled TransNamib’s plan to buy 23 new locomotives for N$1.7 billion, because he feared the risks in sourcing from one supplier. TransNamib had earlier announced this year that it was planning to buy General Electric (Wabtec) locomotives.
Nekundi said in an interview that TransNamib is engaged on the matter following the cancellation of an earlier tender to ensure prompt action accordingly. He said TransNamib will come up with new timelines on the purchase of the new locomotives following the tender cancellation.
He admitted that there will be delays in the purchasing of the new locomotives following the cancellation of the tender, but said that as far as the government was concerned, Namibia’s interest must always come first. Nekundi said, in the meantime, TransNamib is expediting the refurbishing programme of its old locomotives.
The minister also disclosed that TransNamib was engaging with the Development Bank of Namibia and the Development Bank of Southern Africa, who provided the loan for the locomotives, on the way forward.
Earlier, Nekundi announced that the government had cancelled TransNamib’s plan to buy 23 new locomotives for N$1.7 billion because there were risks of relying on a single foreign supplier.
The plan to buy the 23 locomotives was part of the N$2.5 billion loan TransNamib received from the Development Bank of Southern Africa and the Development Bank of Namibia.
TransNamib had earlier announced that it was planning to standardise its fleet by procuring General Electric/Wabtec locomotives. But Nekundi said the government was against the procurement of locomotives through a direct procurement method from a single-source manufacturer.
He said it would be too risky to procure all locomotives from a sole manufacturer without competition. Nekundi added that procuring standardised locomotives from a single source exposes Namibia as a country to the current and future trade wars.
He said TransNamib has been instructed to inform the Central Procurement Board of Namibia (CPBN) that a new tender process will now be launched in line with public procurement laws, opening the bid to multiple suppliers and looking at various supply options for technically compliant and efficient locomotives that can adapt to Namibia’s climatic conditions.
Under the same loan, TransNamib plans to upgrade its mechanical and heavy-duty equipment, steam boilers and tools, and also purchase 300 wagons.
