CIC Energy submits EoI for Trans -Kalahari project

| Tuesday November 16, 2010 00:00

 

Last month, the governments of Botswana and Namibia called for EoIs from the private sector for the development of the rail line, which would connect Botswana and the Waterberg coalfield in South Africa to a port in Namibia.

The development of the rail line was expected to start by June 2011, with a shortlist of developers to be chosen by February. The selected bidders would then have to submit technical bids for the project.

The selected developer would be expected to design, build and operate the Trans-Kalahari rail line and a port in Namibia for an unspecified period of time before transferring the assets to the governments of Botswana and Namibia.

'The Trans-Kalahari rail line is part of CIC Energy's long-term plan to maximise the value of the Mmamabula coalfield by creating a new export route for coal in the region. While a rail project of this size takes some time to develop, this project is gaining momentum as a critical project for the region,' stated CIC Energy president, Greg Kinross.

The consortium comprises CIC Energy, which is developing the Mmamabula Energy Complex, in Botswana, diversified South African miner Exxaro Resources, Botswana-based Morupule Collieries, development finance institution the Industrial Development Corporation and African Infrastructure Investment Managers. These partners were able to supply more than 50-million tons a year of coal for shipment on the proposed rail line, with CIC Energy expected to be one of the anchor tenants.

The rail line was expected to provide an alternative coal transport route to the port of Walvis Bay, rather than the current rail line to the Richards Bay Coal Terminal.

Ð A pre-feasibility study on the rail project, funded by the World Bank and supervised by the governments of Botswana and Namibia, would be completed this month.-(Engineeringnews)