daniel chigunwe
Oliver Kazunga
Senior Business Reporter
THE National Railways of Zimbabwe (NRZ) is awaiting the African Export and Import Bank (Afreximbank) to pay the first instalment to RITES Limited of India in order for the company to start delivering rolling stock under the US$81,2 million deal signed between the companies.
In June this year, the Governments of Zimbabwe and India signed a deal for the procurement of 315 wagons and nine locomotives to capacitate NRZ, given the Second Republic’s thrust of robust transformative growth as outlined in the National Development Strategy 1 (NDS 1).
The growth and transformation of Zimbabwe’s economy are expected to be anchored on 14 priority areas under NDS 1, and one such pillar is infrastructure development.
NRZ public affairs and stakeholder relations manager Andrew Kunambura said in a recent interview the delivery of the equipment under the agreement is expected soon once the first payment is made to RITES.
“We are looking for brand new locomotives and wagons as you would know, recently we signed a deal with the RITES of India facilitated by the Government for the procurement of nine diesel locomotives from India and 300 wagons from the same entity.
“We anticipate that the turnover period should be six months from the period when the first installment of the loan is made to them (RITES).
“The first payment of the instalment hasn’t been paid yet, it’s coming from AfreximBank and I am sure they are concluding their own modalities . . . and the first instalment must be paid very soon,” he said.
Delivery of the first batch of rolling stock under the NRZ/RITES deal is expected within six months of making the first payment instalment.
Mr Kunambura said NRZ’s recapitalisation would be multi-pronged; including the use of internally generated funds with the parastatal intending to generate significant revenue to support its operations.
The company adopted the Public-Private Partnerships (PPPs) initiative as part of a broader scope to recapitalise operations.
“Not so long ago, we had several PPPs arrangements, particularly with importers and exporters of bulk commodities where we are looking at mines and minerals like Zimasco who mine and process chrome into ferrochrome.
“We move their ore from the pit to the smelting plant in Kwekwe and then we move their ferrochrome from Kwekwe to the port (Mozambique).
“So the PPPs arrangement whereby they refurbish our wagons and locomotives and in return we offset that for payment.
NRZ also entered into PPPs arrangements with companies in fuel and Liquified Petroleum Gas (LPG) where the private firms refurbish NRZ tankers for the railways firm to transport the fuel and gas into the country.
“Again we offset that against the freight that we move,” he said.
Of late, RITES, a company owned 100 percent by the Indian government, has supplied locomotives and wagons to CFM of Mozambique and President Mnangagwa was invited by his counterpart, Filipe Nyusi for their commissioning.
It was after the commissioning of CFM’s wagons and locomotives that the NRZ board and management were advised to engage RITES for a similar arrangement.
Bongani Ndlovu
Online Reporter