Transport ministers from Botswana and Namibia are due to sign a...

Transport ministers from Botswana and Namibia are due to sign a bilateral agreement on the development of the Trans-Kalahari Railway, paving way for the appointment of transaction advisers who will lead the mammoth development.
First mooted in 19th century, the 1,500-kilometre Trans-Kalahari Railway (TKR) is key to unlocking the value of the massive coal resources in eastern Botswana through export via Walvis Bay. A 2012 study estimated the railway line, port and loading facilities could cost between $11.7 to $14.7 billion (P95.1 billion to P120 billion).
This week, Botswana Transport and Communications Minister, Nonofo Molefhi announced that government had decided that the rail route would follow the Trans-Kalahari Road Corridor through Gobabis to Walvis Bay.
Molefhi told delegates at a coal conference that although Botswana and Namibia had signed a Memorandum of Understanding on the TKR in 2009, it was necessary to focus discussions via a bilateral agreement to be signed in April.
"We believe this will assure you the private sector of the seriousness of the two governments to work with you to deliver this project.
The governments will endeavour to remove any existing legislative impediments that may hamper the speedy deliver of the project. Key, is the deliberate decision to forge links between Botswana Railways, TransNamib and Namport under a special purpose vehicle but not affecting their existing in-country operation. This will assure the investors of a one-stop shop and a single regulatory body for this bilateral railway and port infrastructure," he explained.
Senior officials close to the latest developments told BusinessWeek that the bilateral agreement would enable the two countries to appoint a transaction adviser who would lead the process to appoint a developer.
"The Botswana government's target is to have the developer in place before the end of the year," one official said. The developer will sign contracts with the two governments and start work on the TKR project, which we expect to be from June 2014 to 2019," says an official.
Coal sector players are keenly awaiting the appointment of the transaction adviser who will be expected to use existing studies and best practice to define the role the private sector will play in the TKR.
Botswana and Namibia have said they want the private sector to take the lead in funding, designing, building and operating the TKR and port. "We believe that this is what the mining community and their off-takers will want in order to have a grip on the logistics costs which for this length of line may be significant. I am therefore happy to invite you to show interest and put proposals forward to develop this project," Molefhi said.
The minister revealed that the two countries had agreed that "where there is enough appetite for the project and recognising the magnitude of the project, selective method of procurement will be considered". Under the method, government is open to consortiums approaching it with proposals for the TKR and port project.
The two countries initially floated Expressions of Interest for the project late in 2010, with 36 companies and consortiums participating. The exercise was later cancelled with officials citing the need for a more appropriate development model and routing.
Besides the Namibian route, Botswana has signed a Memorandum of Understanding with the governments of Zimbabwe and Mozambique for the development of the 1,100 kilometre Ponto Techobanine railway to the Indian Ocean.
Government officials at this week's coal conference said the three governments had agreed on a pre-feasibility study for the eastern route during a meeting held in January.
Those in favour of the eastern route have pointed out that it is shorter and closer to key Indian and Chinese markets, while those supporting the Namibian route cite lower political risks and far greater port capacity.
The Botswana Chamber of Mines has said the eastern and western routes should be given equal priority, as the country's coal resources are large enough to support capacity on both.
A third route, through to Richards Bay Coal Terminal, is under discussion between the Botswana Railways and Transnet of South Africa.

This came from Mmegi online botswana local paper Mar 29th
I am pretty sure I posted this when HC changed the format and it was lost when the old format returned
Good luck all