budget motivation-department of transport

8/9/2019 Budget Motivation-Department of Transport

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R EP U BL IC O F N AM IB IAM IN IS T R Y O F W O R K S A N D T R A N S P O R T

V O T E 2 4 : D E P A R T M EN T O F T R A N S P O R T

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H O N O U R A B LE E RK K I N G H IM TIN AM IN IS T E R O FW O R KS A N D T R A N SP O R T

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BUDGET SPEECH FOR THE FINANCIAL YEAR 2010/2011 BY HONOURABLEERKKI NGHIMTINAMINISTER OF WORKS AND TRANSPORT

Honourable Chairperson of the Whole House CommitteeHonourable MembersI stand here today to present Vote 24 of the Department of Transport in theMinistry of Works and Transport.Vote 24 caters to ensure the development of efficient and effective transportinfrastructure which promotes economic development and social upliftment.The Ministry is mandated amongst others with the task of ensuring that themobility needs of people and industry are met. After meeting these needs, it isexpected that these expensive Government assetsare managed to the benefitof the Nation.Honourable Members of this August House and the public at large will agreewith me to say that transportation infrastructures such as roads, rail, air andwater transport are the catalysts that facilitate smooth flow of people, goodsand services for the betterment of any nation. The Namibian Governmentcontinue to ensure progressive development of the much needed means oftransport for our economic emancipation, the Ministry of Works and Transportis expected to ensure that the development and maintenance oftransportation infrastructure ought not to be compromised.

Transport Corridors are geared towards facilitating regional economicintegration. Investments within a Public Private Partnership approach haveresulted in increased cross-border trade and traffic volumes on the Walvis BayCorridors, namely the Trans 'Kalahari, Trans Caprivi and Trans Kunene. Theyinclude among others the rehabilitation of the Trans Caprivi High Way,construction of the Sesheke Bridge over the Zambezi River, upgrading of theWalvis Bay Airport as well as upgrading of the Port of Walvis Bay. The socio-economic spinoffs accruing out of transportation corridors within the contextof spatial development initiatives cannot be overemphasized.2


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There is no doubt that Namibia is well on her way towards transforming thePort of Walvis Bay into a competitive Port of choice and major gateway toEast-European markets and the Americas and into Southern Africa.Honourable Members, as you may be aware, already in 2006, the Governmentof the Republic of Namibia decided to move from project based developmentassistance in the road sub-sector to a Sector-Wide Approach (SWAp) in theform of sub-sector budget support. Based on the study and the input fromstakeholder workshop, a tentative Policy Matrix, an Action Plan and anImplementation Schedule was compiled.The Policy Matrix proposes actions to work towards short-term achievementsin line with GRN's own processes and reform efforts in order to improveexisting procedures and to contribute to the successful implementation of theSWAp. To this end, various development partners that are active in theNamibian 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 TransportPolicy of 1995, the roads subsector prepared a Medium to long Term RoadsMaster Plan (Ml TRMP) upon which the annual work plans are prepared. Thatis the MlTRMP combines the result of various Regional Roads Master Plans(RRMPs)that address road development needs in the regions and in particularfor the previously neglected areas of Namibia. The purpose of MlTRMP is to:

Achieve the integration of development, rehabilitation and maintenancefunding in line with best practices; Expandthe planning horizon to a period of 20 years; Address the existing backlog in road preservation; Provide for the needs of specifically rural accessroads; 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 ExpenditureManagement Systems (PEM), Donor Coordination System, PerformanceMonitoring, Client Consultation Systems as well Institutional and CapacityIssues. The Sector-Wide Approach aims at strengthening Government-ownedstrategies and contributing to the development of a sustainable sub-sectorwith efflcient institutions and a coherent policy framework and donorcoordination system.To this end performance and governance contract with SOE's which resortunder our Ministry has been completed and the date for the signing ceremonyhas been set for the zo" of May 2010. This Institutionalization of aperformance monitoring system is the initiative aimed at raising accountabilityservices delivery, predictability and confidence in the manner of doingbusiness with these SOE's.

Namibia cannot ignore the significance of infrastructure development andmaintenance because this will plague the country in poverty and hungerresulting from limited movement of goods and service. I firmly believe that theNamibian transport infrastructure can boost our potential to prosper evenduring the world economic downturn. It is therefore necessary for us to openup the existing and untapped markets through the provision of adequate andworld-class transportation infrastructures. This remains at the core of servicedelivery for our citizens.Investing into the development of the transportation infrastructure has farreaching benefits that can trigger the creation of employment opportunitiesand can keep all economic sectors afloat i n the 21st Century. Countries that areprospering in the 21st century are the ones that take cognizance of the positiveimpacts of well developed and well maintained transportation networksthroughout their communities.

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It is our wish as a Ministry responsible for transport matters to deliver on theexpectations of the Namibian people and execute the responsibilitiesentrusted to us in this portfolio. We therefore demand from the HonourableMembers to render necessary support in order to realize this importantnational dream and pride.Below are some of road infrastructure developments that have been carriedout over the past few years, in an effort to eliminate challenges that areprompted by lack of transportation networks.

Honourable Chairperson of the Whole House CommitteeHonourable MembersAllow me to enumerate the ministry's achievements attained in the precedingfinancial year 2009/10 in the Road sub-sector as relates to a number of roadconstruction 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 PlantContractor in partnership with four SME contractors. Three SMEContractors were managed by women and the contract amount toN$32.4 million

2. Eiseb- Gam -Epukiro in Omaheke Region The project was divided intofour sections.a. The first section is 73km; it runs from Gam Junction - Benjamin

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

b. The second section is from Epukiro (Okatumba Gate) - BenjaminPost. The total length is 7S.km. This section was completed inJanuary 2009.

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

d. The fourth section comprehends a final layer of gravel of 100mmthick additional on top of Project 1 and Project 2. Theconstruction 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 ourGovernment. The project is divided into two phases. Phase 1 Rundu-Siko-Nkurenkuru covers 134 km outof that 120km is completed and isopen to traffic. Phase I will be completed in November 2010. Phase 2 ofthe Rundu-Siko-Nkurenkuru-Elundu (236km) Road has commencedwith the construction in May 2009.

4. Rehabilitation of Okahandja-Karibib: The project is co-financed byGovernment and German Technical Cooperation (KfW) through the newSector Wide Approach Mechanism. The total length is 77km and out ofthat 75 km length is completed and opens to traffic. The project will becompleted by August 2010.

5. TR 15/1 Tsumeb-Tsintsabis-Katwitwi: The total length is 220km. Theproject is divided in three sections. The total length for section A is 70km. The construction commenced in February 2009 and 18 km lengthout of 70km is completed. The project is expected to be completed byJune 2011.

6. Maintenance of the Aerodrome: During the last financial year theministry did the blading works on Tsumkwe, Okakarara, Kamanajab,Sesfontein and Opuwo Aerodromes. While on Mariental cracks sealingand slurry sealing was done. The maintenance works of sealing cracksand slurry sealing was also done on the road between Katutura StateHospital and Windhoek Central State Hospitals.

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8. DR3670Oshandi - Eembahu - Oshiweda 33 km (Ohangwena Region)

Gravel roads1. DR3649 Onalulago - Epembe 46 km (Ohangwena Region)2. DR3657 Oshapapa- Epumbu 25 km (Oshikoto Region)3. DR3603 Onayena -onankali 24.4 km (Oshikoto Region)4. Omuthiya - Onanke 33.4 km (Oshikoto Region)

Another purpose of this programme is the rehabilitation, maintenance andmanagement of the most valuable assets of the nation - national roadnetwork. The allocation for this financial year will cover the rehabilitation ofOkahandja - Karibib Phase II (3Skm).I therefore request for an amount of N$629 583 000PROGRAMME 4: RAILWAY INFRASTRUCTUREREHABILITATION AND MAINTENANCE

DEVELOPMENT,

Under the NPO III framework of Highly Developed and Reliable Infrastructurethe 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 andconstruction of new railway lines, conducting feasibility studies for new raillines, upgrading, rehabilitation of aged railway lines, acquisition of newlocomotives and rolling stock in order to provide efficient and effective railtransport services to the nation, setting up of inter-modal transshipmentfacilities etc.Some of the Programme Objectives are: To extent the Namibian Railway lineSystem to connect to neighboring countries; ensure continued provision ofrailway line services by maintaining; upgrading and rehabilitating aged railway

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line sections; increase maintenance of railway infrastructure, equipment, radiocontrol systems to ensure efficient; effective and trouble free rail operations,to modernization and upgrading the rolling stock to higher speed and toacquire 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 toOshikango (Northern Railway Line Extension Phase II) earthworksembankment, sleeper manufacturing, ballast stone crushingcomponents completed. Work is ongoing at the two road-over-railbridges and access roads. Construction of the station buildings atOshikango, acquisition of rails and construction of the permanent way isanticipated to be completed by 2011.On the Rehabilitation and Upgrading of railway lines: Rehabilitationand upgrading of the Aus to Luderitz railway line is also ongoing, withearthworks embankment for the remaining 70 kilometers planned forcompletion mid 2010.With regard to Maintenance Programme: Inspections, scheduled repairsand emergency repairs is ongoing on 2419 km of track, including turnouts,loop lines, station yards, track signage and geometry: Sleeper, turnout, railwear, rail joint, road and level crossing signage, broken rails, weldingrepairs etc and tamping of ballast. Maintenance on 192 steel bridges and 5335 rail culverts is undertaken. Station building Maintenance and signalingsystems (train control system) is also being done.Sleeper Manufacturing Factory: The Mi~istry jointly with TransNamibHoldings Limited issued a Call for an Expression of Interest to set-up aSleeper manufacturing Plant in Tsumeb. A successful bidder was found andan agreement to set up and start concrete sleeper production before theend 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 beemployed.Likewise a call for an .Expression of Interest for the Consultancy toRehabilitate the Walvis-Bay to Tsumeb railway line section was issued.Several companies submitted their bids and evaluation still needs to becompleted.On the development of new railway line links; A Pre-feasibility studyfor the TransKalahari railway link between Namibia and Botswanafunded by the World Bank was commissioned. - Final Report is expectedbefore November 2010.A Full feasibility study for the TransCaprivi Railway link to the envisagedcape Fria harbour was also commissioned. The Final Feasibility StudyReport is expected by mid May 2010.

On the Locomotive and Rolling Stock Modernization andRefurbishment Program: A Call for Expression of Interest to Supply GPSBased Fleet Management Systems for vehicles and locomotives wasissued. Trains are still controlled by means of an antiquated radio basedsystem. With the implementation of a modern train control system, wewill be able to track the positions of our equipment at anytime of a day.In addition 2 Locomotives were refurbished in Namibia and 2 wererefurbished in South Africa. This is ongoing with another 14 to berefurbished during the next two years. Five accidents damaged (staged)locomotives were repaired and put back in service, while some cattlewagons were converted t~ other uses.

To further improve on Safety at Level Crossings: Negotiations between therail operator and local authorities to provide speed humps at level crossings aretaking place. Speed bumps are the most practical solution to improve safety forvehicle. Two level crossings were provided with traffic calming measures atSwakopmund and Tsumeb.

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With this program I am requesting an amount ofN$187131 000PROGRAMME 5: A IR TRANSPORT IN FRASTRUCTURE

The purpose of this program is to ensure safe, secure and efficient civilaviation infrastructure that contributes to national security, the economy andthat promotes aviation safety in Namibia, by fostering the planning anddevelopment of air transport that ensure a safe, orderly and efficient growthof 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 andobjective investigation into accidents and incidents in line with the conventionon Civil Aviation and in accordance with the Civil Aviation Act, as well as theprovision of Government Air Transport services for schedule & non-scheduleflights for O / M I A.Activities taken place: The Tower at Hosea Kutako International Airport isconstructed and the Radar system is installed. The Eurocat X display system atErosAirport is installed and the Site Acceptance will be done in June 2010. TheWide Area Multi-lateration is progressing very well. The Site Acceptance isscheduled for May 2010.Current ongoing projects: The Construction of Air Traffic Control Towers atKatima Mulilo and Swakopmund Airport. The Tender for the Construction ofthe Tower at Katima Mulilo has been awarded by the Tender Board, and theconstruction is,expected to start soon. The Ministry is in the process to appointa consultant for the Swakopmund Tower.The Construction of the Walvis Bay Airport has ended in the Arbitration Courtin Paris, the Ministry is however confident that all actions taken by theMinistry was in the interest of the Government of Namibia, and therefore theProject should be completed shortly.

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For the construction of the DCAHead Quarters, the ICAD Experts currently inNamibia had raised some new requirements, and therefore the drawings hadto be revisited by the Architects. The project is anticipated to start within thisfinancial year.The Ministry continues to collect en-route and approach charges, the totalfunds collected during the previous 12 month period was N$ 48,6 Million. Thisis a great achievement, for this Ministry.

In addition, ICAD Experts assigned to the Ministry are rendering valuableservices by providing advice in the setting of high civil aviation security andsafety standards resulting in minimizing aviation incidents and accidents.Work in Progress:

1. The new Government Hangar is 70% near completion2. The dispatch rate was 98% in 2009/2010 financial year3. All the flights that were requested and confirmed were completedsuccessfully4. The acquisition of the falcon 7X is 50% in progress.

As a result of safety recommendations generated by the investigators, therehas been a reduction in aviation occurrences observed during the year 2009and the first quarter of the year 2010 when compared to the year 2007 and2008.I therefore request an amount of N$ 365 958 000P R O G R A M M E 6: M E T E O R O L O G IC A L IN F R A S T R U C T U R E D E V E L O P M E N T

As the Ministry's mandate is huge and above all multifaceted, it is expected ofthe Meteorological Service to have proper and adequate meteorologicalinfrastructure to conform to regional and international expectations, thereforethe purpose of this program is to extend and upgrade the Meteorological

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Infrastructure to ensure compliance with the World MeteorologicalOrganizations' Convention and with the SADC protocol on Transport,Communications and Meteorology as well as contribute to the safety andwellbeing of the citizens in the reduction of property loses and added valuessustainable economic growth by collecting and analysing of weather andclimate data and the provision of predictions and warnings, information andadvice.This will enable Namibia to adequately respond to the ever growing demandsof 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 themeteorological services, Automatic Weather Stations, Upper Air Observationsin some towns have been established as well as Meteorological Offices inalmost all the regions. Katima Mulilo, Grootfontein, Ondangwa, Walvis BayandKeetmanshoop have now specialized regional offices to give the much neededinformation to the wider public.For the financial year 2010/2011 an amount of N$16 million has beenbudgeted and allocated for development budget to Namibia MeteorologicalServices.Two capital projects are earmarked for this financial year, namely:1. Meteorological Radar System and2. Meteorological Office Complex in RunduThe work of the Meteorological Service and its Significance to thepublic/nation cannot be over-emphasized as it has been witnessed during ourrainy season. Information and warnings pertaining to or caused by weatherhave been adequately given.I therefore request an amount of N$ 34 889000PROGRAMME 7: MARITIME AND INlAND WATER TRANSPORTINFRASTRUCTURE DEVELOPMENT AND SAFETY

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The purpose of this program is to ensure the fulfillment of the Ministry'sobjectives regarding safety of life and property at sea, protection of themarine environment from the pollution by ships and the promotion of nationalmaritime interests.

IActivities taken place: The following are activities in the maritime sector wereundertaken 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 Committeeon 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 toimprove drastically due to the Ministry's consistent efforts to enforce maritimesafety rules, through conduct of safety inspections, surveys and verificationsnot only on board ships but also the competency of seafarers on handlingemergencies at sea.Further, the remaining new shore based navigational aids (racons) for safetyguidance of ships/boats along the Namibian coast have been fully installed atvarious critical positions including the Sylvia Hill near Holland's Birds Island andOranjemund.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 thisfinancial year:1. Completion and commissioning of the Zambezi river landing craft and

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2. Completion and promulgation of the revised Merchant Shipping RadioRegulations, repealing the old regulations of 1998.

3. Construction of new offices for the Directorate Maritime Affairs in WalvisBay, 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 seaand on inland waters.

Upgrade the emergency radio communication equipment to serve theNational Maritime RescueSub-Centre in Walvis Bay.

Acquire and install a maritime radar system that will cater for the shipssafety and security, as well as monitor ships operations in the nationalwaters.I therefore request an amount of N$ 48 674 000

PROGRAMME 8: GOV ERNM ENT SERV ICES

The purpose of this program is to provide Government with reliable and saferoad transport services. The allocated amount will be used for personnelexpenditure aswell as for goods and other services.I therefore request an amount of N$ 42 594 000In conclusion/Honourable Chairperson of the Whole House Committee,Honourable Members, in light of the above outlined programmes, I humblysubmit Vote 24 for the total amount of N$ 1 308 829 000 for yourconsideration and approval.last but not least, I wish to express my sincere appreciation towards theHonourable Minister of Finance, the Honourable Deputy Minister and staff fortheir efforts in putting together an inspiring Budget for the 2010/2011FinancialYears.I thank you for your attention.

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