REPUBLIC OF NAMIBIA

MINISTRY OF WORKS AND TRANSPORT

VOTE 24: DEPARTMENT OF TRANSPORT

BY

HONOURABLE ERKKI NGHIMTINA

MINISTER OFWORKS AND TRANSPORT

07 May 2010
BUDGET SPEECH FOR THE FINANCIAL YEAR 2010/2011 BY HONOURABLE
ERKKI NGHIMTINAMINISTER OF WORKS AND TRANSPORT

Honourable Chairperson of the Whole House Committee

Honourable Members

I stand here today to present Vote 24 of the Department of Transport in the

Ministry of Works and Transport.

Vote 24 caters to ensure the development of efficient and effective transport

infrastructure which promotes economic development and social upliftment.

The Ministry is mandated amongst others with the task of ensuring that the
mobility needs of people and industry are met. After meeting these needs, it is
expected that these expensive Government assets are managed to the benefit
of the Nation.

Honourable Members of this August House and the public at large will agree
with me to say that transportation infrastructures such as roads, rail, air and
water transport are the catalysts that facilitate smooth flow of people, goods
and services for the betterment of any nation. The Namibian Government
continue to ensure progressive development of the much needed means of
transport for our economic emancipation, the Ministry of Works and Transport
is expected to ensure that the development and maintenance of
transportation infrastructure ought not to be compromised.

Transport Corridors are geared towards facilitating regional economic

integration. Investments within a Public Private Partnership approach have
resulted in increased cross-border trade and traffic volumes on the Walvis Bay
Corridors, namely the Trans 'Kalahari, Trans Caprivi and Trans Kunene. They
include among others the rehabilitation of the Trans Caprivi High Way,
construction of the Sesheke Bridge over the Zambezi River, upgrading of the
Walvis Bay Airport as well as upgrading of the Port of Walvis Bay. The socio-
economic spinoffs accruing out of transportation corridors within the context
of spatial development initiatives cannot be overemphasized.
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There is no doubt that Namibia is well on her way towards transforming the
Port of Walvis Bay into a competitive Port of choice and major gateway to
East-European markets and the Americas and into Southern Africa.

Honourable Members, as you may be aware, already in 2006, the Government

of the Republic of Namibia decided to move from project based development
assistance in the road sub-sector to a Sector-Wide Approach (SWAp) in the
form of sub-sector budget support. Based on the study and the input from
stakeholder workshop, a tentative Policy Matrix, an Action Plan and an
Implementation Schedule was compiled.

The Policy Matrix proposes actions to work towards short-term achievements

in line with GRN's own processes and reform efforts in order to improve
existing procedures and to contribute to the successful implementation of the
SWAp. To this end, various development partners that are active in the
Namibian roads sub-sector support the sector-wide approach, i.e. Germany,
the European Commission Chinese, Japanese, etc.

Subsequent to this, particularly in line with the White Paper on Transport

Policy of 1995, the roads subsector prepared a Medium to long Term Roads
Master Plan (Ml TRMP) upon which the annual work plans are prepared. That
is the MlTRMP combines the result of various Regional Roads Master Plans
(RRMPs) that address road development needs in the regions and in particular
for the previously neglected areas of Namibia. The purpose of MlTRMP is to:

• Achieve the integration of development, rehabilitation and maintenance

funding in line with best practices;
• Expand the planning horizon to a period of 20 years;
• Address the existing backlog in road preservation;
• Provide for the needs of specifically rural access roads;
• Achieve sustainability concerning the levels of road user charges.

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In essence, the aim of Sector-Wide Approach (SWAp) in the transport sub-
sector is a policy shift which comprises 7 assessment areas, i.e.
Macroeconomic Framework, Subsector Policy and overall strategic Framework,
Medium Term Expenditure Framework, Accountability and public Expenditure
Management Systems (PEM), Donor Coordination System, Performance
Monitoring, Client Consultation Systems as well Institutional and Capacity
Issues. The Sector-Wide Approach aims at strengthening Government-owned
strategies and contributing to the development of a sustainable sub-sector
with efflcient institutions and a coherent policy framework and donor
coordination system.

To this end performance and governance contract with SOE's which resort
under our Ministry has been completed and the date for the signing ceremony
has been set for the zo" of May 2010. This Institutionalization of a
performance monitoring system is the initiative aimed at raising accountability
services delivery, predictability and confidence in the manner of doing
business with these SOE's.

Namibia cannot ignore the significance of infrastructure development and

maintenance because this will plague the country in poverty and hunger
resulting from limited movement of goods and service. I firmly believe that the
Namibian transport infrastructure can boost our potential to prosper even
during the world economic downturn. It is therefore necessary for us to open
up the existing and untapped markets through the provision of adequate and
world-class transportation infrastructures. This remains at the core of service
delivery for our citizens.

Investing into the development of the transportation infrastructure has far

reaching benefits that can trigger the creation of employment opportunities
and can keep all economic sectors afloat in the 21st
Century. Countries that are
prospering in the 21st century are the ones that take cognizance of the positive
impacts of well developed and well maintained transportation networks
throughout their communities.

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It is our wish as a Ministry responsible for transport matters to deliver on the
expectations of the Namibian people and execute the responsibilities
entrusted to us in this portfolio. We therefore demand from the Honourable
Members to render necessary support in order to realize this important
national dream and pride.

Below are some of road infrastructure developments that have been carried
out over the past few years, in an effort to eliminate challenges that are
prompted by lack of transportation networks.

Honourable Chairperson of the Whole House Committee

Honourable Members

Allow me to enumerate the ministry's achievements attained in the preceding

financial year 2009/10 in the Road sub-sector as relates to a number of road
construction projects that were carried out over the past years:

1. District Road (DR) 3507 Muyako - Ngoma 36km in Caprivi Region: The
road was completed in March 2010. It was executed by one Plant
Contractor in partnership with four SME contractors. Three SME
Contractors were managed by women and the contract amount to
N$32.4 million

2. Eiseb- Gam -Epukiro in Omaheke Region The project was divided into
four sections.

a. The first section is 73km; it runs from Gam Junction - Benjamin

Post - Eiseb 10 Post. The construction for this section was
completed in September 2009.

b. The second section is from Epukiro (Okatumba Gate) - Benjamin

Post. The total length is 7S. km. This section was completed in
January 2009.

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 c. The third section is from Gam Junction - Gam Settlement, Gam
Junction - Eiseb 10 Post. The total length is 87 km and was
completed in January 2009.

d. The fourth section comprehends a final layer of gravel of 100mm

thick additional on top of Project 1 and Project 2. The
construction of this section will be completed in June 2010.

3. Rundu..Siko-Nkurenkuru ..Elundu road (370 km): This project is co-

financed by Japanese Bank for International Cooperation (JBIC)and our
Government. The project is divided into two phases. Phase 1 Rundu-
Siko-Nkurenkuru covers 134 km outof that 120km is completed and is
open to traffic. Phase I will be completed in November 2010. Phase 2 of
the Rundu-Siko-Nkurenkuru-Elundu (236km) Road has commenced
with the construction in May 2009.

4. Rehabilitation of Okahandja-Karibib: The project is co-financed by

Government and German Technical Cooperation (KfW) through the new
Sector Wide Approach Mechanism. The total length is 77km and out of
that 75 km length is completed and opens to traffic. The project will be
completed by August 2010.

5. TR 15/1 Tsumeb- Tsintsabis-Katwitwi: The total length is 220km. The

project is divided in three sections. The total length for section A is 70
km. The construction commenced in February 2009 and 18 km length
out of 70km is completed. The project is expected to be completed by
June 2011.

6. Maintenance of the Aerodrome: During the last financial year the

ministry did the blading works on Tsumkwe, Okakarara, Kamanajab,
Sesfontein and Opuwo Aerodromes. While on Mariental cracks sealing
and slurry sealing was done. The maintenance works of sealing cracks
and slurry sealing was also done on the road between Katutura State
Hospital and Windhoek Central State Hospitals.

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Honourable Chairperson of the Whole House Committee
Honourable Members

Allow me now to introduce the ongoing budget programmes under Vote 24 of

the Ministry of Works and Transport for which the Ministry requires funding
under the current financial year.

PROGRAMME: 1, 2, 3: ROADS CONSTRUCTION AND UPGRADING, ROADS

REHABILITATION, MAINTENANCE AND MANAGEMENT OF THE NATIONAL
ROADS NETWORKS

The purpose of this programme is to construct rural gravel roads, to improve

rural roads to bitumen-paved roads and to upgrade Trunk and Main Roads to
bitumen standard. The allocation for this financial year will cover the
continuation of the construction and upgrading of the following roads:
Okahao - Omakange (83km), Gobabis - Otjinene - Grootfontein link (157km),
Oshikuku- Okalongo (23km), Rundu-Siko-Nkurenkuru-Elundu(370km) Tsumeb
- Tsintsabis - Katwitwi (220km). MR 125 liselo {TR8/6} - linyanti -
Singalamwe- Kongola (205km), OR3610 Mangetti West branching off from
Oshivelo/Ondangwa main road at Casa Blanca to link with Tsumeb-Tsintsabis-
Katwitwi Road (52 km), OR 3643 Ekamba - Onkani (55km), OR3660 MR92
Ohakweenyanga-Omagongati Road (11km), OR 3427 Tondoro - Kamupupu
(13km), OR 3428 Rupara/Muveve- Gcangcu (13km) as well as commencement
for the construction of the following labour based and gravel roads.

Labour Based:
1. OR3524 Ngoma (Izimwe) - Nakabolelwa 23 km (Caprivi Region);

2. OR3427 Kamupupu to Mbururu 26 km (Kavango Region);

3. OR3448 Kaisosi to Cuma 35 km[Kavango Region);

4. OR3449Tjova to Oivayi 26 km (Kavango Region);

5. OR3671Okatana - Ongwediva - Onamutai 19 km (Oshana Region);

6. OR3672 Outapi - Okapalelona Border Post 45 km (Omusati Region);

7. OR3653Oshikuku - Ekangolinene 26 km (Omusati Region)

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 8. DR3670 Oshandi - Eembahu - Oshiweda 33 km (Ohangwena Region)

Gravel roads

1. DR 3649 Onalulago - Epembe 46 km (Ohangwena Region)

2. DR 3657 Oshapapa- Epumbu 25 km (Oshikoto Region)

3. DR 3603 Onayena -onankali 24.4 km (Oshikoto Region)

4. Omuthiya - Onanke 33.4 km (Oshikoto Region)

Another purpose of this programme is the rehabilitation, maintenance and

management of the most valuable assets of the nation - national road
network. The allocation for this financial year will cover the rehabilitation of
Okahandja - Karibib Phase II (3Skm).

I therefore request for an amount of N$629 583 000

PROGRAMME 4: RAILWAY INFRASTRUCTURE DEVELOPMENT,

REHABILITATION AND MAINTENANCE

Under the NPO III framework of Highly Developed and Reliable Infrastructure
the Expected Outcome of this programme is an Upgraded, Expanded,
Reliable and Efficient Rail Network that ensures provision of safe, secure,
effective infrastructure and services to the Namibian nation and beyond.

The programme focuses on multitude of factors, which include design and

construction of new railway lines, conducting feasibility studies for new rail
lines, upgrading, rehabilitation of aged railway lines, acquisition of new
locomotives and rolling stock in order to provide efficient and effective rail
transport services to the nation, setting up of inter-modal transshipment
facilities etc.

Some of the Programme Objectives are: To extent the Namibian Railway line
System to connect to neighboring countries; ensure continued provision of
railway line services by maintaining; upgrading and rehabilitating aged railway
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line sections; increase maintenance of railway infrastructure, equipment, radio
control systems to ensure efficient; effective and trouble free rail operations,
to modernization and upgrading the rolling stock to higher speed and to
acquire new rolling stock to boost rail transportation services.

With regard to ongoing activities Iwould like to state the following:

Construction of new railway lines: The construction of the Ondangwa to

Oshikango (Northern Railway Line Extension Phase II) earthworks
embankment, sleeper manufacturing, ballast stone crushing
components completed. Work is ongoing at the two road-over-rail
bridges and access roads. Construction of the station buildings at
Oshikango, acquisition of rails and construction of the permanent way is
anticipated to be completed by 2011.

On the Rehabilitation and Upgrading of railway lines: Rehabilitation

and upgrading of the Aus to Luderitz railway line is also ongoing, with
earthworks embankment for the remaining 70 kilometers planned for
completion mid 2010.

With regard to Maintenance Programme: Inspections, scheduled repairs

and emergency repairs is ongoing on 2419 km of track, including turnouts,
loop lines, station yards, track signage and geometry: Sleeper, turnout, rail
wear, rail joint, road and level crossing signage, broken rails, welding
repairs etc and tamping of ballast. Maintenance on 192 steel bridges and 5
335 rail culverts is undertaken. Station building Maintenance and signaling
systems (train control system) is also being done.

Sleeper Manufacturing Factory: The Mi~istry jointly with TransNamib

Holdings Limited issued a Call for an Expression of Interest to set-up a
Sleeper manufacturing Plant in Tsumeb. A successful bidder was found and
an agreement to set up and start concrete sleeper production before the
end of the year is concluded.

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 The factory will have a capacity to produce 500 concrete sleepers per day,
but upgradable to 1000 sleepers. Approximately 100 people will be
employed.

Likewise a call for an .Expression of Interest for the Consultancy to

Rehabilitate the Walvis-Bay to Tsumeb railway line section was issued.
Several companies submitted their bids and evaluation still needs to be
completed.

On the development of new railway line links; A Pre-feasibility study

for the TransKalahari railway link between Namibia and Botswana
funded by the World Bank was commissioned. - Final Report is expected
before November 2010.

A Full feasibility study for the TransCaprivi Railway link to the envisaged
cape Fria harbour was also commissioned. The Final Feasibility Study
Report is expected by mid May 2010.

On the Locomotive and Rolling Stock Modernization and

Refurbishment Program: A Call for Expression of Interest to Supply GPS
Based Fleet Management Systems for vehicles and locomotives was
issued. Trains are still controlled by means of an antiquated radio based
system. With the implementation of a modern train control system, we
will be able to track the positions of our equipment at anytime of a day.
In addition 2 Locomotives were refurbished in Namibia and 2 were
refurbished in South Africa. This is ongoing with another 14 to be
refurbished during the next two years. Five accidents damaged (staged)
locomotives were repaired and put back in service, while some cattle
wagons were converted t~ other uses.

To further improve on Safety at Level Crossings: Negotiations between the

rail operator and local authorities to provide speed humps at level crossings are
taking place. Speed bumps are the most practical solution to improve safety for
vehicle. Two level crossings were provided with traffic calming measures at
Swakopmund and Tsumeb.
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With this program I am requesting an amount ofN$187131 000

PROGRAMME 5: AIR TRANSPORT INFRASTRUCTURE

The purpose of this program is to ensure safe, secure and efficient civil
aviation infrastructure that contributes to national security, the economy and
that promotes aviation safety in Namibia, by fostering the planning and
development of air transport that ensure a safe, orderly and efficient growth
of Civil Aviation to develop that necessitate the development of infrastructure.

Other activities under this program are:

i)to regulate air transport services,
ii)to promote aviation safety through the conduct of independent and
objective investigation into accidents and incidents in line with the convention
on Civil Aviation and in accordance with the Civil Aviation Act, as well as the
provision of Government Air Transport services for schedule & non-schedule
flights for O/MI A.

Activities taken place: The Tower at Hosea Kutako International Airport is

constructed and the Radar system is installed. The Eurocat X display system at
Eros Airport is installed and the Site Acceptance will be done in June 2010. The
Wide Area Multi-lateration is progressing very well. The Site Acceptance is
scheduled for May 2010.

Current ongoing projects: The Construction of Air Traffic Control Towers at

Katima Mulilo and Swakopmund Airport. The Tender for the Construction of
the Tower at Katima Mulilo has been awarded by the Tender Board, and the
construction is,expected to start soon. The Ministry is in the process to appoint
a consultant for the Swakopmund Tower.

The Construction of the Walvis Bay Airport has ended in the Arbitration Court
in Paris, the Ministry is however confident that all actions taken by the
Ministry was in the interest of the Government of Namibia, and therefore the
Project should be completed shortly.
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For the construction of the DCA Head Quarters, the ICAD Experts currently in
Namibia had raised some new requirements, and therefore the drawings had
to be revisited by the Architects. The project is anticipated to start within this
financial year.

The Ministry continues to collect en-route and approach charges, the total
funds collected during the previous 12 month period was N$ 48,6 Million. This
is a great achievement, for this Ministry.

In addition, ICAD Experts assigned to the Ministry are rendering valuable

services by providing advice in the setting of high civil aviation security and
safety standards resulting in minimizing aviation incidents and accidents.

Work in Progress:

1. The new Government Hangar is 70% near completion

2. The dispatch rate was 98% in 2009/2010 financial year
3. All the flights that were requested and confirmed were completed
successfully
4. The acquisition of the falcon 7X is 50% in progress.

As a result of safety recommendations generated by the investigators, there

has been a reduction in aviation occurrences observed during the year 2009
and the first quarter of the year 2010 when compared to the year 2007 and
2008.

I therefore request an amount of N$ 365 958 000

PROGRAMME 6: METEOROLOGICAL INFRASTRUCTURE DEVELOPMENT

As the Ministry's mandate is huge and above all multifaceted, it is expected of

the Meteorological Service to have proper and adequate meteorological
infrastructure to conform to regional and international expectations, therefore
the purpose of this program is to extend and upgrade the Meteorological
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Infrastructure to ensure compliance with the World Meteorological
Organizations' Convention and with the SADC protocol on Transport,
Communications and Meteorology as well as contribute to the safety and
wellbeing of the citizens in the reduction of property loses and added values
sustainable economic growth by collecting and analysing of weather and
climate data and the provision of predictions and warnings, information and
advice.

This will enable Namibia to adequately respond to the ever growing demands
of users of meteorological data, information and services in the aviation,
tourism, agriculture, fisheries and so on.

Activities taken place: Extension and upgrading of the facilities of the

meteorological services, Automatic Weather Stations, Upper Air Observations
in some towns have been established as well as Meteorological Offices in
almost all the regions. Katima Mulilo, Grootfontein, Ondangwa, Walvis Bay and
Keetmanshoop have now specialized regional offices to give the much needed
information to the wider public.

For the financial year 2010/2011 an amount of N$16 million has been
budgeted and allocated for development budget to Namibia Meteorological
Services. Two capital projects are earmarked for this financial year, namely:

1. Meteorological Radar System and

2. Meteorological Office Complex in Rundu

The work of the Meteorological Service and its Significance to the

public/nation cannot be over-emphasized as it has been witnessed during our
rainy season. Information and warnings pertaining to or caused by weather
have been adequately given.

I therefore request an amount of N$ 34 889000

PROGRAMME 7: MARITIME AND INlAND WATER TRANSPORT

INFRASTRUCTURE DEVELOPMENT AND SAFETY
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The purpose of this program is to ensure the fulfillment of the Ministry's
objectives regarding safety of life and property at sea, protection of the
marine environment from the pollution by ships and the promotion of national
maritime interests.

Activities taken place: The following are activities in the maritime sector were
undertaken during the year under review:
• Draft Merchant Shipping Radio Regulations was completed and ready for
promulgation by the Ministry.
• The revised draft Admiralty Jurisdiction Bill is with the Cabinet Committee
on legislation for perusal and advice on the way forward.
• The Merchant Shipping Fees Regulations of 1998 has been amended and
repealed by the new Regulation.

Safety awareness among seafaring communities in the country continue to

improve drastically due to the Ministry's consistent efforts to enforce maritime
safety rules, through conduct of safety inspections, surveys and verifications
not only on board ships but also the competency of seafarers on handling
emergencies at sea.
Further, the remaining new shore based navigational aids (racons) for safety
guidance of ships/boats along the Namibian coast have been fully installed at
various critical positions including the Sylvia Hill near Holland's Birds Island and
Oranjemund.

Accession to the Convention on Standards of Training, Certification and Watch-

keeping of Fishermen was effected.

New maritime activities during financial year 2010/2011 .

The following activities will be embarked upon and carried out during this
financial year:

1. Completion and commissioning of the Zambezi river landing craft and

related matters.
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2. Completion and promulgation of the revised Merchant Shipping Radio
Regulations, repealing the old regulations of 1998.
3. Construction of new offices for the Directorate Maritime Affairs in Walvis
Bay, with view to enhance delivery of maritime services.
4. In addition, further activities are envisaged as follows:

• Drafting of new regulations for safety of small vessels/boats at the sea

and on inland waters.
• Upgrade the emergency radio communication equipment to serve the
National Maritime Rescue Sub-Centre in Walvis Bay.
• Acquire and install a maritime radar system that will cater for the ships
safety and security, as well as monitor ships operations in the national
waters.

I therefore request an amount of N$ 48 674 000

PROGRAMME 8: GOVERNMENT SERVICES

The purpose of this program is to provide Government with reliable and safe
road transport services. The allocated amount will be used for personnel
expenditure as well as for goods and other services.

I therefore request an amount of N$ 42 594 000

In conclusion/Honourable Chairperson of the Whole House Committee,

Honourable Members, in light of the above outlined programmes, I humbly
submit Vote 24 for the total amount of N$ 1 308 829 000 for your
consideration and approval.

last but not least, I wish to express my sincere appreciation towards the
Honourable Minister of Finance, the Honourable Deputy Minister and staff for
their efforts in putting together an inspiring Budget for the 2010/2011Financial
Years.

I thank you for your attention.

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