Govt in mega rail rehabilitation deal

Source: Govt in mega rail rehabilitation deal – Sunday News Nov 20, 2016

Dumisani Nsingo, Senior Business Reporter
THE Government is negotiating a multi-million dollar deal with Chinese firm, China Railway Rolling Stock (CRRC) for the rehabilitation of the country’s rail network.

Transport and Infrastructural Development Minister Dr Joram Gumbo told Sunday Business that CRRC has agreed in principle to rehabilitate part of the country’s rail network which includes track relaying and refurbishing signaling equipment.

CRRC is one of the world’s reputable railway rolling stock manufacturing companies, which manufactured the 31 wagons for the National Railways of Zimbabwe that were commissioned two weeks ago.

“The Chinese firm, CRRC which wants to rehabilitate the entire rail network system from Victoria Falls to Harare but we want them to go all the way to Mutare because I have told them we are a landlocked country and rail is one of our strategic modes of transport. We are at an advanced stage in reaching an agreement but I cannot be happy about it at the moment because we are still to see anything tangible,” said Dr Gumbo.

He said CRRC engineers would soon conduct a feasibility study of the rail network up to Mutare.

“They have already done their feasibility study from Victoria Falls to Masasa. After our engagement this week (last week) we expect their engineers to be back on the ground to do a feasibility study of the rail network up to Mutare and we have instructed them to engage NRZ to see how much it is going to cost. Thus they will be working with a team from NRZ and we expect them to complete the process before the end of the year if they are not interrupted by the rains,” Dr Gumbo said.

The country has a rail network stretching over 2 760 kilometres of 1 067 millilitres gauge track, linking all sectors of the economy.

However, NRZ board chairman Mr Larry Mavima said the company through the assistance of its transaction advisory firm, Deloitte was looking forward to going into the market to seek proposals for potential financiers or partners.

“We are looking at about two to three months where we will adjudicate those proposals after that three months period we will have another month where we will then be able to present to Government who the preferred financier or partner is going to be.

“So we are looking at a period of around March-April, we are going to be able to conclusively sign an agreement with the financier or technical partner and then from then on its time for financial closure and we hope that by the time we get to June next year we will have started the recapitalisation process,” said Mr Mavima.