N$2.5-billion tender scrapped over one-track locomotive deal

THE government has cancelled TransNamib’s N$2.5-billion locomotive procurement tender, citing concerns over single-source supply risks and a lack of competitive bidding.

The Ministry of Works and Transport has cancelled the tender with immediate effect.

The loan was intended to procure 23 electrical diesel locomotives for TransNamib to supplement its ageing locomotives.

TransNamib has received N$500 million from the Development Bank of Namibia and N$2.1 billion from the Development Bank of Southern Africa.

This is due to the company’s direct procurement through the Central Procurement Board of Namibia (CPBN) to award a tender to a single manufacturer.

Works and transport minister Veikko Nekundi announced the cancellation of the tender in the National Assembly yesterday.
He said he wants to fully understand TransNamib’s procurement process for locomotives through the CPBN.

“Considering that in the global market there is not only one manufacturer of quality locomotives, and the geopolitics of the world today . . . it will be too risky to procure locomotives with a single manufacturer and without competition.

“Following a thorough consultation with relevant stakeholders in line with the Procurement Act, a strategic decision was made to halt the procurement process as it will not fully serve the desired outcome in the broader sense,” Nekundi said.

He directed TransNamib to cancel the procurement process with immediate effect and to commence with other procurement processes.
“We do not support acquiring locomotives from a single manufacturer,” he said.

Nekundi further instructed TransNamib to ensure that the CPBN is informed of the latest development.

Consequently, in a letter dated 6 May, the CPBN approved the cancellation of the tender for the supply and delivery of 23 new general electrical diesel locomotives.

Nekundi has called for the alternative supply of locomotives that are efficient and adaptable to Namibia’s climate.
Procuring from a single source exposes Namibia to current and future trade wars compounded by unilateral sanctions.

This, the minister said, would greatly compromise the sovereignty of the country as these sanctions do not have any regard for railway diplomacy.

“It is prudent that through this initial stage of procurement we ensure all potential risks are mitigated when procuring and importing assets of current use,” Nekundi said.

Earlier this year, TransNamib said it would spend N$311 million on rebuilding seven locomotives.

This involves dismantling and refurbishing each locomotive to extend its operational lifespan to 20 years.
TranNamib is yet to release a statement.

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