TransNamib revises procurement strategy after N$1.7b tender blunder

TransNamib CEO Desmond van Jaarsveld says the state-owned rail operator is working with lending institutions and the Central Procurement Board of Namibia (CPBN) to revise its procurement strategy.This comes after works and transport minister Veikko Nekundi confirmed last week that the N$1.7 billion single-source procurement of 23 locomotives had been halted due to geopolitical risks and a lack of competition. The N$1.7 billion forms part of a larger N$2.6 billion loan secured in July 2024 from the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa (DBSA). In January, TransNamib announced it would also allocate N$211 million to refurbish seven locomotives. Nekundi told parliament the deal involved direct procurement from a sole supplier, a method the government has now abandoned. “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. Modernising rolling stockVan Jaarsveld told the Namibian Sun on Tuesday that further details would be made public once internal plans are finalised. “The objective is to accelerate the procurement process while always ensuring compliance with the Public Procurement Act. "TransNamib remains dedicated to modernising its rolling stock and achieving its turnaround goals. These updates will be integrated into the amended Integrated Strategic Business Plan, which will be submitted to the Ministry of Works and Transport for approval and subsequently made available to the public,” he said. He added that the update reflects TransNamib’s commitment to excellence and the advancement of Namibia’s interests. Necessary strategic shift Last week, Nekundi explained that after thorough consultation with stakeholders, a strategic shift was necessary and aligned with Section 64.1(b) of the Public Procurement Act (Act No. 15 of 2015), which allows a public entity to cancel a bidding process if it fails to achieve the expected outcome. “The ministry, as a line ministry and shareholder, directed TransNamib to cancel the procurement process,” he said. “Considering that, in effect, as a line ministry and a shareholder by 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.” He said in a letter dated 6 May, CPBN approved TransNamib’s request, dated 30 April, to cancel the direct procurement of 23 General Electric diesel-electric locomotives, by Section 54.1(g) of the Act. Nekundi said that TransNamib would explore a broader pool of technically compliant and climate-adapted locomotive suppliers in the future.nikanor@nmh-bub.com.na

TransNamib revises procurement strategy after N$1.7b tender blunder

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Namibian Sun 2025-07-01

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TransNamib revises procurement strategy after N$1.7b tender blunder

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Namibian Sun 2025-07-01

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