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Lorraine Matimbe
The US$400 million venture between Diaspora Infrastructure Development Group (DIDG), Transnet and National Railways of Zimbabwe remains on course with financial closure expected in June, The Sunday Mail has established.
Financial closure is a period when all the conditions of financing agreement are fulfilled prior to the initial release of funds.
Despite legal and insurance delays in the conclusion of the deal, the venture — secured in 2016 and resulted in Zimbabwe taking delivery of 13 locomotives and 200 wagons last year — is still alive.
According to the deal, the consortium of DIDG and Transnet will recapitalise, refurbish and bring new rail infrastructure to the parastatal.
In an interview last week, NRZ public relations officer Mr Nyasha Maravanyika said negotiations between NRZ and DIDG-Transnet were ongoing and positive.
“There are ongoing negotiations between NRZ and DIDG-Transnet consortium, various things such legal and insurance issues are being reconciled and by first half of this year we will have a financial closure,” he said.
“Restoration, recapitalisation and improvement of the rail infrastructure is not an overnight event in bringing NRZ to its glorious days. It depends with the structure of the deal and a period between six and seven years is equitable to bring NRZ on track.
“The temporary measures of leasing of the coaches, wagons and locomotives assisted us in pushing up our passenger and freight services.”
Mr Mataranyika said the new coaches had seen NRZ reintroduce a commuter train service in Bulawayo during the week.
He said plans were afoot to resume the commuter trains in Harare soon.
During its prime days the parastatal was the country’s leading bulk transporter.
Online Reporter