Funding delays southern railway project

THE Lüderitz railway rehabilitation project has been temporarily grounded because of a lack of money.

Addressing regional and local councillors and Government officials at Keetmanshoop on Thursday, Minister of Works and Transport, Helmut Angula said N$70 million is needed to rehabilitate the remaining 47 kilometres of rail.
Angula said plans are afoot to transfer N$30 million from the Northern Railway Project to resume work on the southern project.
The Ministry of Finance has already approved the transfer, he said.
He pledged that once the money is available, work on the project will resume without delay.
Angula further said Government is engaged in negotiations with China to secure a N$300 million soft loan.
However, Angula was quick to say that some aspects are holding up the negotiations.
The bone of contention is whether to allocate the construction work to a Chinese or Namibian building contractor, said Angula.
According to Angula, the Chinese government is pushing for a Chinese construction company employing Chinese workers. The belief of the Chinese people is that ‘they cannot work with African workers since they have a different culture’, Angula said.’ The Chinese government also wants to send building material from China for the project.
According to Angula, the Chinese government believes that Namibian construction companies do not have the capacity to take on the project.
The soft loan is earmarked for the extension of the northern railway to Oshikango on the Angolan border and the construction of a railway station at Oshikango.According to Angula, the Ministry plans to make budget provision for the remaining N$40 million in the next financial year.
He said the railway, once completed, would serve as an important link between the southern port and inland areas.
– luqman@namibian.com.na