Govt needs $460m to revive NRZ

via Govt needs $460m to revive NRZ | Radio Dialogue July 24, 2014

GOVERNMENT, in consultation with other institutions, is in the process of engaging a bank to fund the resuscitation of the National Railways of Zimbabwe (NRZ) to the tune of $460 million.

NRZ, once the epicentre of the southern African rail network and transport system, has been struggling with its operations due to underfunding and obsolete equipment.

Contributing to a panel discussion on creating optimal enablers for the development of the mining sector at the ongoing Mine Entra, Permanent Secretary of Transport and Infrastructural Development, Munesu Munodawafa confirmed the transport ministry was vigorously pursing the rehabilitation of the parastatal.

Other panelists had pointed out transport was an important factor in mining development with Munodawafa appreciating the fact, saying transportation could be both a key enabler and constraint in the mining sector, as the movement of input and outputs depended on good infrastructure.

The permanent secretary pointed out the transport ministry was involved in partnerships with some institutions to revive the country’s rail network

“The country’s rail is supposed to be operational but it is not working which is a struggle. The ministry is involved in low level discussion with key institutions and by end of July we will be formally engaging a bank to source funds,” he said.

“If the engagements are successful, the ministry is looking at acquiring an injection of $460 million. This would be used for signalling the rail network, fixing the telecommunication system and purchasing of locomotives and wagons,” the perm sec said.

Munodawafa said by August 30, the transport ministry anticipated it would have finalised the deal.

“This would see some action and after two and a half months, we would be able to transcend to high level agreements. The phase will take three years and needs support from stakeholders,” he said.

Touching on the road network, Munodawafa said cabinet has of yesterday (Tuesday) approved plans that will see a “clear programme” rolled out to fix the country’s roads.

“There had been questions on why government chose to start with the Plumtree to Mutare road instead of the Harare to Beitbridge road. The Plumtree to Mutare road is the only road that touches eight of Zimbabwe’s 10 provinces. It goes through all cities except Masvingo. It internally provides connectivity and props the Zimbabwean economy. 

“When we received a loan to fix a major road, we had to make a decision therefore we considered these factors. We hope to receive another loan for the Harare to Beitbridge road,” he said.

On aviation, the perm sec said a new airliner would fly into Zimbabwe and land in Harare on August 5 adding on the existing airplanes flying into the country.

COMMENTS

WORDPRESS: 8
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    When China sends the USD 27 billion for ZIMASSET we will rebuild the railways – any day now we will be up and running again

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    In the unlikely event that they find anyone gullible enough to lend (give) these clowns any cash no doubt their first priority will be to buy a fleet of luxury 4 x 4 cars

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    engaging” a bank “to fund the resuscitation of the National Railways of Zimbabwe (NRZ) to the tune of $460 million.

    THE BANK MUST BE OUTTA ITS MIND because 2/3 of the money if ever the deal sees daylight will go to fund more cars for management,ministers their wives and small houses and there will be 2 miles of railway track to show for the remainder

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    Wethu 6 years ago

    But what cargo will the railways carry seeing companies are closing everyday. I’m waiting to see which brain damaged financier will throw their money into such a bottomless pit….or is it Mbeki?

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    John Thomas 6 years ago

    There is no amount of money that can fix nrz. If the operation is de ZANU fied it may be revived for far less than this.

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    Justice 6 years ago

    Put in any wires and they’ll just get stolen.

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    Who is going to manage NRZ? It is like trying to fill a leaking container. NRZ will never make profit with ZPF in power NEVER!!!

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    Mukanya 6 years ago

    Of the US$460 million required to re-establish the Non-existent Railways of Zimbabwe, how much is for the private pockets of the Project Executives/Managers. Some serious strategic thinking is needed.