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Africa Moyo, Harare Bureau
THE National Railways of Zimbabwe (NRZ) board yesterday approved the US$420 million funding offer from the Diaspora Infrastructure Development Group (DIDG) for the recapitalisation of the company and referred it to Treasury to pursue and consider it.
The funding is coming from the Afreximbank.
Sources said yesterday’s board meeting followed a Special Joint Plenary meeting held in Harare about a fortnight ago where a team of Government officials wanted to establish if DIDG and Transnet, the companies that won the NRZ recapitalisation tender, have capacity to fund the project.
A statement signed by NRZ board chairman Advocate Martin Dinha after yesterday’s meeting indicates that the board approved the proof of payment that DIDG has given to Government as evidence that it has obtained funding.
“. . . a meeting of the NRZ board was held on 9 September 2019 (yesterday) to consider the report from the Special Joint Plenary meeting and resolved to recommend to Government that; the offer/ proof of US$420 million funding from the DIDG through Afreximbank be referred to Treasury to pursue and consider, inter alia, the availability of the said funding.
“The NRZ should await guidance from Treasury, on the availability of the funding where after, subject to such guidance as may be given by Treasury, the project be progressed in terms of the provisions of the Joint Ventures Act as previously directed by Cabinet communicated to NRZ through the letter from the Minister of Transport and Infrastructural Development dated 16 October 2017 to the NRZ,” reads Adv Dinha’s statement.
DIDG/ Transnet had been given an August 14 deadline to furnish the NRZ board with proof of funding for the project, amid indications that there were hawks working with some officials in the Ministry of Transport to torpedo the deal.
Adv Dinha said the board was excited that it had delivered on its mandate and has been able to “progress the transaction” towards implementation.
The NRZ board unanimously approved and recommended that parties should proceed to sign a Joint Venture Agreement to allow consummation of JV2 or the new railway concession company with DIDG backed by Afreximbank.
The Afreximbank has become the country’s all-weather friend as it has supported Harare when other financiers especially from the West, withheld their funds.
“As NRZ we now wait for National Treasury and JV Unit under Ministry of Finance to lead the engagement with DIDG and Afreximbank and conclude the necessary agreements so that we start implementing the project with urgency,” said Adv Dinha.
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