The tender was split into three and bidding companies will have to supply 20 000 tonnes per contract.

Prominent names among the 225 bids include the business partner of President Hage Geingob, Chinese millionaire Jack Huang; the military owned company August 26 Construction; and rail dealer Vaino Nghipondoka.

According to the Tender Bulletin newsletter, the Walvis Bay-Kranzberg tender attracted 74 companies among them the Italian company DR Ferroviaria Italia FVR whose bid at N$240 million was the lowest.

A joint venture between the secretive military company, August 26 Construction, and the Chinese firm Qingjian International, submitted a N$550 million bid.

Kambwa Construction, owned by businessman David Sheehama, and Sunrise Investment that is owned by Huang each asked for N$347 million.

Seventy-five companies tendered for the Kranzberg-Otjiwarongo stretch for which DR Ferroviaria Italia FVR also submitted the lowest bid at N$240 million.

David Imbili's NDI Holdings that has teamed up with millionaire Huang through his company Sun Investment Group are also after the Kranzberg-Otjiwarongo stretch.

Although the government is prepared to pay N$1,4 billion for the three jobs, the bids for the Otjiwarongo-Tsumeb stretch range from N$240 million to N$1,7 billion.

The Tender Bulletin also reported that despite the rule which restricted participation to wholly Namibian-owned firms, five Chinese companies tendered anyway.

The scenario of forcing this tender to 100% local firms has attracted plaudits and criticism. Some said it's empowering Namibians, but others are unhappy since it will create unnecessary middlemen and push up prices.

Others questioned why the government was restricting this tender to Namibians, knowing that there are very few Namibian companies who can provide the rail steels. The state could have encouraged locals to partner international companies which are able to provide the steel, a source added.

Another frustration among some tenderers is why the ministry of works removed the performance guarantee which bidders submit when they tender. A performance guarantee is a clause in the contract meant to protect the client (in this instance the state) against losses if the contractor fails to perform.

Sources said removing the need for the performance guarantee might expose the state because the companies might deliver sub-standard rails, and then refuse to take responsibility.

Experts also raised red flags about the logistics of importing the materials, considering factors such as port space and tired railway lines.

At the moment, Namibian firms are struggling to deliver 4 000 tonnes of rails in a year. An expert said even if a miracle happens and the rail gets to land, there is still a problem of storage at the ports since not all the load will leave the port because the poor condition of the existing rails will force companies to only use the railways at night.

Sources said storing the materials might be a logistical disaster if it goes wrong because of lack of space at the port, but Namport chief executive officer Bisey Uirab told The Namibian last week that the Walvis Bay port has the capacity to offload and temporarily store rail of between 7 000 tonnes and 10 000 tonnes per shipment.

"This implies that we can handle 60 000 tonnes over a one-year period. However, the evacuation of the rail from the port is dependent on other players in the logistics chain, and will require thorough planning between Namport and other stakeholders on this project," he said.

According to him, as a port authority, they regularly engage with clearing and forwarding agents, who represent cargo owners.

"We have received several enquiries from clearing and forwarding agents regarding the port of Walvis Bay's rail handling and storage capacity," Uirab noted.

The Namport boss said in theory, they could import the required tonnes of rails in only two shipments, but the limitation is the evacuation rate.

"A slow evacuation rate means a longer time for the ship to remain in port since the rate of offloading is affected," he stated.

Uirab said the rates of vessels are very high, and as such, a knowledgeable importer will always analyse the logistics so that the ship spends just the right amount of time in port to keep costs at an acceptable level.

In practice, Namport would be comfortable if the tonnes can be handled in about six to eight different shipments, but he said Namport is not in control of the logistics.

"We are optimistic, and believe that there will be proper coordination and planning amongst all the stakeholders in this project to make it a success," he added.

Works ministry spokesman Julius Ngweda insisted the ministry is ready to implement the project, although he admitted that the conditions of the railways have made them slower.

"We are still going to use the same railway to transport the rail," he said.

Ngweda insisted that the security guarantee is still there and not removed, as alleged by the sources