Maravi

‘Tazara can outperform expectations if financed’

‘Tazara can outperform expectations if financed’
Written by Nchima Nchito Jr in Dar es Salaam, Tanzania
Thursday, August 20, 2009 3:26:48 AM

TAZARA has appealed to the governments of Zambia and Tanzania to guarantee a US $100 million loan for the institution. In an interview, TAZARA managing director Henry Chipewo said if financed, the institution had the capability to outperform expectations.

Asked on the progress of finding an equity partner for the institution, Chipewo said the project was still ongoing.

He said of the US $100 million, US $60 million would be used to clear the various debts that the institution had accrued over a 30 year period while US $40 million would be used to modernise the institution and upgrade the obsolete technology.

Chipewo added that TAZARA was likely to increase its turnover through re-investments of some of the resources once the two governments that co-own the railway line guaranteed the US $100 million.

He expressed hope that the prospects of the institution appeared bright, citing the addition of clients such as Mopani Copper Mines and Kansanshi copper-gold mine in Solwezi as an indication of the progress made by the company.

And Chipewo revealed that transport and communication ministers from the two countries would soon sign the 14th protocol with the Chinese government.

“Under this protocol, the Chinese government will supply us with six locomotives,” Chipewo said.

He said this was in addition to the various other forms of support that would be extended to the institution by the Chinese government.

“Funds will also be made available to revive the TAZARA training school that has been dormant for a long time,” said Chipewo. “There is a need to train people in various skills to fill the technical gaps in the institution.”

Labels: HENRY CHIPEWO, PARASTATALS, TAZARA

posted by MrK @ 2:28 AM