Botswana and Namibia were to sign a bilateral agreement for the development of the Trans-Kalahari Railway deal on April 20, 2013. This was not to be as the signing was postponed after the Namibia requested for more time to finalize the technical issues involved.
The two South African countries had in 2009 signed a Memorandum of Understanding on the TKR but it is not enough to pave way for the commencement of the project. The bilateral agreement is required for corporation between the two countries and to pave way for the appointment of transaction consultants to lead the mega project.
The proposed TKR is meant to link Botswana’s Mmamabula coalfields with the Walvis Bay Port in Namibia. The 1 500 km railway line is expected to boost trade in Botswana and turn it into a regional trade hub.
According to Botswana’s Ministry of Transport and Communications, the railway project would contribute to economic development of the country by means of promoting regional trade and attracting direct investment from foreign investors.
The TKR route will run parallel to the Trans-Kalahari Highway (TKH) which will facilitate faster and more efficient transportation of goods between the two countries.
The TKR and the TKH form part of the Trans-Kalahari Corridor that was opened in 1998 with an initial investment of $127 million. The corridor is entirely paved and travels 1, 900 km from Walvis Bay in Namibia through Botswana into Johannesburg in South Africa. Individual destinations along this corridor, including Francistown, Gaborone, Gobabis, and Windhoek, are within a 2-day transit time. There have been some recent improvements to the corridor.
The railway will be constructed at an estimated cost of $ 9 billion and is expected to offer an alternative route for the import and export of commodities that will greatly help in growing the country’s economy. The World Bank and the two governments will be involved in the garnering for money to fund the project.
The estimated capital expenditure for the project ranges between $ 8 billion to $ 11 billion with operation costs ranging from $21 billion and $ 27 billion over a period of three decades. The project will be in partnership between the government and the private sector there by increasing the participation of the private sector in economic development. Already there are private sector interests from the Canada’s Mana Mining; Australian Company Discover Metals Ltd and CIC energy.
Money from the World Bank’s Public Private Infrastructure Advisory Fund was used to pay for the pre-feasibility study.
Construction of the TKR line will begin as soon as the two governments have signed the bilateral agreement by the end of this month; identified a development partner; and concluded a contract from the list of potential developers. Both governments have shown willingness that the private sector takes the lead in designing, building and operating TKR.
The construction works involve earthworks, drainage, rails, track works, bridges and tunnels. Work is expected to stretch over the 2014-19 period.
