Procurement board tackles TransNamib tender cancellation Chamwe Kaira The Central Procurement Board of Namibia says it is dealing with the government’s decision to cancel TransNamib’s plan to buy 23 new locomotives for N$1.7 billion. Johanna Kambala, Manager of Stakeholder Relations at the board, said the matter is sensitive and the board will respond to questions at an appropriate time. Minister of Works and Transport Veikko Nekundi confirmed that the locomotive tender had been cancelled due to concerns over sourcing from a single supplier. He said TransNamib now needs to come up with new timelines for the locomotive purchase. Earlier this year, TransNamib announced plans to buy General Electric locomotives as part of the fleet standardisation process. The purchase formed part of a N$2.5 billion loan the company received from the Development Bank of Southern Africa and the Development Bank of Namibia. But Nekundi said the government was against the direct procurement of locomotives from a single manufacturer. He said Namibia’s interests must come first and that relying on one foreign supplier posed a risk. Nekundi said in the meantime, TransNamib is expediting the refurbishing programme of its old locomotives. He added TransNamib has been instructed to inform the Central Procurement Board of Namibia that a new tender process will now be launched in line with public procurement laws. The new process will open bids to multiple suppliers and explore different options for efficient locomotives suited to Namibia’s climate. TransNamib is also working with the Development Bank of Namibia (DBN) and the Development Bank of Southern Africa to decide on the way forward. In the meantime, Nekundi said TransNamib is speeding up the refurbishment of its old locomotives. Under the same loan, TransNamib plans to upgrade its mechanical and heavy-duty equipment, steam boilers, and tools, and also purchase 300 wagons.

#Procurement #TransNamib #TenderCancellation #Locomotives #Namibia

N$2.5-billion tender scrapped over one-tracklocomotive 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. The post N$2.5-billion tender scrapped over one-tracklocomotive deal appeared first on The Namibian.

#TransNamib #Procurement #TenderCancellation #Locomotives #Namibia