Govt cancels TransNamib's N$1.7bn sole supplier locomotives tender

Works minister Veikko Nekundi said the planned procurement of 23 locomotives worth N$1.7 billion by TransNamib through a single-source manufacturer has been halted due to geopolitical risks and a lack of competition.The N$1.7 billion is part of a N$2.6 billion loan TransNamib secured from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA) in July 2024.TransNamib announced the plan in January, saying it would also spend N$211 million rebuilding seven existing locomotives.Nekundi told parliament on Thursday that the procurement of locomotives was to be done through a direct procurement method from a single-source manufacturer. “Considering that in the global market there is not only one manufacturer of quality locomotives, geopolitics of the world, as it is evident today in the context of unilateral sanctions and overnight economic tariffs imposed on nations by the supers of the world, it will be too risky to procure all locomotives from the sole manufacturer and without competition,” Nekundi said.Strategic shift necessaryHe explained that after thorough consultation with relevant stakeholders, and in accordance with the Public Procurement Act, a strategic shift was necessary. Nekundi said the decision followed a thorough consultation with relevant stakeholders and was in line with the Public Procurement Act, Act No. 15 of 2015, Section 64.1b, which states that the board or a public entity may, at any time before the acceptance of the bid, reject, bid or cancel the bidding process if it does not create or achieve the expected outcome.According to the minister, a strategic decision was made to halt the procurement process, as it will not fully serve the desired outcome in a broader sense.He said that the ministry, as a line ministry and shareholder, had directed TransNamib to stop the procurement. “Considering that, in effect, as a line ministry and a shareholder in accordance with Articles 48 and B of the European Constitution, our Supreme law have directed TransNamib Limited to, in effect, cancel the procurement process and, in compliance with procurement laws and regulations, commence with a procurement process that embraces other procurement venues, which do not support acquiring locomotives from a single manufacturer.“In the same vein, TransNamib Limited was further instructed to ensure that the Central Procurement Board of Africa is informed accordingly. "Consequently, in its letter dated 6 May of this year, the Central Procurement Board, as instructed or requested by TransNamib, through its letter dated 30 April this year, approved TransNamib&#039;s request to cancel the direct procurement for the supply, delivery and commissioning of 23 new General Electric diesel-electrical locomotives in accordance with Section 54.1G of the Procurement Act,” he added.Going forwardNekundi said that going forward, TransNamib will pursue broader procurement options and extensively explore various supply options for technically compliant and efficient locomotives that can adapt to Namibia&#039;s climatic conditions.“Procuring standardised locomotives from a single source exposes Namibia as a country to the current and future trade wars, and compliance with unilateral sanctions will greatly compromise the sovereignty of our state. As with unilateral sanctions, many attempts do not have due regard to railway diplomacy,” Nekundi said.The decision followed concerns raised by Affirmative Repositioning (AR) leader Job Amupanda earlier this year, when he called for the cancellation of the acquisition of the new locomotives, arguing that direct procurement is inappropriate for a deal of this scale.Amupanda claimed the process lacked transparency and is being rushed to benefit “white interests” before the new administration takes office in March. Personal and political gainAmupanda has also accused TransNamib’s chief executive officer (CEO), Desmond van Jaarsveld, of orchestrating the deal for personal and political gain.TransNamib denied allegations that acquiring 23 new locomotives valued at N$1.7 billion is a &#039;last-minute corrupt deal&#039;.Responding to Amupanda, Van Jaarsveld said that claims made by Amupanda alleging that the procurement process is a ‘last-minute corrupt deal’ are unfounded and malicious. “The process was initiated in 2022 and the eventual procurement of the locomotives are following all necessary steps in accordance with the Public Procurement Act," Amupanda said.He added that TransNamib is not the procuring agency, as the Central Procurement Board of Namibia, which has reviewed and approved all procurement, is the official body managing the process.nikanor@nmh-hub.com.na

Govt cancels TransNamib's N$1.7bn sole supplier locomotives tender

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Namibian Sun 2025-06-27

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Govt cancels TransNamib's N$1.7bn sole supplier locomotives tender

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Namibian Sun 2025-06-27

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