TransNamib is exploring new locomotive options after a N$2.5-billion tender was cancelled due to geopolitical concerns and procurement irregularities.
The national rail company says it is engaging other rail operators on various locomotive options, following the cancellation of the tender by the Ministry of Works and Transport.
Works and transport minister Veikko Nekundi last week directed the cancellation of the tender, citing geopolitics that could affect Namibia’s economy.
The cancellation was done after it was discovered the tender was awarded to a single manufacturer.
TransNamib board chairman Theofelus Mberirua in a statement issued on Monday said the cancellation was due to recent global geopolitical developments, the risk of unilateral sanctions, escalating tariffs and potential trade wars.
The board, in consultation with the ministry, has cancelled the direct procurement by the Central Procurement Board of Namibia (CPBN) of 23 new Wabtec/General Electric locomotives.
The amount of N$2.5 billion is a loan extended by both the Development Bank of Namibia and the Development Bank of Southern Africa.
“Going forward, the company will extensively explore various locomotive options that are technically compliant with a proven after-sales service, and are able to operate in our unique Namibian conditions,” Mberirua said.
He said ongoing discussions are being held with other national rail operators in the Southern African Development Community region to explore collaboration and share expertise on proven fit-for-purpose locomotives and compatibility regarding the interchangeability of critical machine parts.
Mberirua said the procurement process is fully managed by the CPBN, with transparency and fairness ensured through rigorous oversight, including a review by an independent third-party technical adviser appointed by the lending institutions.
“The company reiterates the importance of noting that regarding the banks’ funding, TransNamib will not receive the funding directly, but disbursements related to the funding will be made directly to suppliers,” he said.
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