Business

TAZARA scouts for $380 million

KALONDE NYATI, Lusaka
ABOUT US$380 million is required in the phase one revamping exercise of Tanzania-Zambia Railway Authority (TAZARA), Minister of Transport and Communication Brian Mushimba has disclosed.
Mr Mushimba said in an interview yesterday that the railway company, co-owned by Zambia and Tanzania, requires railway tracks, wagons, locomotives and other infrastructure estimated to cost US$380 million for the firm to operate effectively.
He said a total of US$900 million may be required to fully revamp the railway company.
“TAZARA has not been performing effectively and the two governments [Zambia and Tanzania] are looking to revamp the railway,” he said.
Recently, China expressed interest in taking over TAZARA through a 30-year concession arrangement although the governments of Zambia and Tanzania are not keen about the arrangement but prefer a three to five years management contract arrangement.
“Chinese firms who have interest in mining want to run the railway to move mining products and equipment through the railway but we can only allow that through a management contract arrangement with specific terms and conditions unlike the 30-year concession contract,” he said.
China’s Foreign Affairs Minister Wang Yi, who was in the country this week,  pledged to give TAZARA a new lease of life through a robust revitalisation process.


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