Major rail tender up for grabs

THE tender for the construction of the last part of the Northern Railway Line is set to close next week and it is likely that the multi-million project will be awarded to the planned joint-venture between the Road Construction Contractor (RCC) and a Chinese SOE, MCC Communication Engineering Technology Corporation.

The Ministry of Works and Transport and a Chinese company, China National Machinery and Equipment Import and Export Corporation, entered into an agreement in 2009 to complete the last part of the Northern and Aus railway lines. The Chinese company would have ordered 13 200 tonnes of rail at a cost of N$290 million and the construction of the line would have cost the Government an additional N773 million which was later lowered to N$450 million. However, a political decision was taken to cancel the agreement with this specific Chinese company.

The Director of Railways, Robert Kalomoh, confirmed that the tender closed on 29 March adding that only thereafter will the Ministry decide on the successful tenderer. In the meantime, the RCC and MCC Corporation (China) have resolved to team up and cooperate in the areas of road and railway construction. Minister Erkki Nghimtina requested Cabinet to give approval to the Ministry to identify and award construction projects both in railways and roads through negotiations with the RCC and MCC as part of supporting the turn-around strategy of the Road Contractor Company. According to Kalomoh, the first consignment of rails amounting to N$189 million, ordered from an Austrian company, Voes Alphine, is to arrive in Namibia a day before the closure of the tender.

“These rails will be sufficient to complete the Ondangwa-Oshikango Railway Line, including the completion of the Oshikango Railway Station.” An amount of N$260 million was already spent on the railway line between Ondangwa and Oshikango, while an additional N$286 million has been budgeted for the project for the 2011/2012 financial year. “We have completed all the earthworks for the railway line and two fly-over bridges were built and we also bought the sleepers for the project,” said Kalomoh. Government spent about N$841 million on the construction of the railway line between Tsumeb and Ondangwa and the total project is scheduled to be completed within the next two years.

In terms of the Development Programmes for the 2011/2012 to 2013/2014 financial years and additional N$70 million will be spent next year on the Northern railway line and the last N$24,5 million will be made available in the 2013/2014 book year. The total estimated expenditure on that railway line which will link Namibia with Angola is more than N$1,4 billion.

click to enlarge INTERRUPTED: The planned railway line was washed away near where it runs under the Omafo-Engela road in the Helao Nafidi town. © Photo: PLACIDO HILUKILWA