adminThe railway network in Zimbabwe has dilapidated over the years due to vandalism and lack of maintenance as the country reeled under economic sanctions that Western countries imposed.
The World Bank (WB) has advised the NRZ, which is saddled with debts, to close over 60 percent of the worn out railway network.
Transport and Infrastructural Development Minister Nicholas Goche said the deal would also result in the purchase of locomotives for the NRZ.
“South African railway companies are now cognisant of our strategic geographical position and are now approaching us,” he said.
“A BOT agreement is being finalised under which $340 million will be extended to Zimbabwe for the acquisition of locomotives and repair of the railway system which will go a long way in solving the railway challenges currently being experienced.”
A host of challenges beset the NRZ, including capital constraints and a limited revenue inflow which has inhibited replacement and maintenance of ageing infrastructure.
The bulk of its fleet has outlived its lifespan with some locomotives and wagons more than 40 years old.
The NRZ is one of 10 parastatals that the Government has earmarked for privatisation and commercialisation to restore viability. — New Ziana.
Online Reporter