Malawi to construct railway line from Central to Northern Region

By Prisca Promise Mashushu

The Malawi Government has planned to construct a railway line from Central to Northern Region under a Public Private Partnership (PPP) model.

The Public Private Partnership Commission (PPPC) says in a statement that it is currently seeking transaction advisory service provider to assist the Ministry of Transport and Public Works in the implementation and development of project.

The statement explains that the transaction advisory services will assist in determining the technical, legal, financial and environmental feasibility of developing and implementing the railway line, under a PPP options report which will recommend the best way to structure the PPP.

The statement reads: “It will further determine the most economical route of the railway line from Central Region to Northern Region to offer best trade services to Malawi.”

“The transaction services will also determine best option mix with the existing ports of Chilumba and Chipoka; existing road network and existing railway lines on the Malawi and Tanzania side as the situation may dictate.”

“The transaction service with also support the Ministry of Transport and Public Works in identifying a private partner to design, finance, construct, operate and transfer the required railway track and associated services which include operations of the locomotives within a given timeframe, quality, budget and scope.”

PPPC states that the Advisor is required to undertake a comprehensive PPP feasibility analysis for the Ministry of Transport and Public Works to establish the viability and affordability of constructing the railway line and operation of associated services.

It says a PPP option is considered an optimal solution and if the client opts to proceed to the procurement stage after obtaining all necessary approvals, the Consultant may be required to provide the necessary technical, legal and financial advisory support for the procurement of the private partner to design, finance and develop the railway line.

“All activities shall comply with the provisions of the PPP Guidelines and procedures Manual and other applicable procurement and PPP principles and regulations,” the statement reads.

It says the consultant will provide the Commission with all the bidding administrative support necessary including advertising, bidder communication, drafting and other administrative support for the entire procurement process.

It further says that an Evaluation Team comprising various stakeholders, assisted by the consultants, will evaluate the bids following guidance given in the Bid procedure as a Best and Final offer (BAFO) process.

The Advisors will assist PPP in the final negotiations comprising of categorising issues appropriately, developing timelines for completions and planning negotiation strategies and processes for reaching an effective agreement as the selected consultant will be expected to provide services for all the two phases which will be covered under one contact.

“Interested consultants should provide their information demonstrating that they have the required qualifications and relevant experience to perform the services,” says the statement.

It says the preferred consultants should have demonstrable experience of at least seven years of providing similar services, that is PPP detailed feasibility studies and procurement support to either the public or private sector or both.

PPP says the firm should further demonstrate having knowledge of the African operating environment as it affects the implementation of the PPPs especially in the railway transport sector.

The statement reads: “In addition, the team should provide evidence of a proven track record in successfully transacting PPPs in the ranges of the required sums of money in the past five years in various sectors.”

“It should also demonstrate having solid team of professionals in the relevant areas such PPPs, Financial and Risk Analysis, Mechanical/Transport Engineering, and Quantity Surveying with individual experience of not less than five years.”

It says the consultants will be selected using Quality and Cost Based Selection (QCBS) method which is in accordance with the procedures set out in the Public Procurement and Disposal of Assets Act 2017.

The deadline for submitting expressions of interest is November 15, 2022.