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Tanzania, Zambia to sign MoU with China over TAZARA line

Tanzania, Zambia to sign MoU with China over TAZARA line
By Kabanda Chulu
Fri 23 Oct. 2009, 04:00 CAT

TANZANIAN and Zambian ministers of transport are this month expected in China to sign a Memorandum of Understanding (MoU) with the Chinese government aimed at revamping operations of TAZARA railway line.

In an interview, Chinese Ambassador to Zambia Li Qiangmin said there was need to find ways of making the Tanzania-Zambia-Railways (TAZARA) efficient in its operations.

ìIt is the lifeline of Zambiaís transport and with the projection of one million metric tonnes of copper production per annum by 2011, the railway line must be rebuilt to accommodate the expected huge cargo as well as ensuring the competitiveness of Zambia,î said Ambassador Li.

ìSo before the end of this month, the transport ministers of both Zambia and Tanzania will travel to China to sign a memorandum of understanding with our government that will look into ways of resuscitating operations.î

TAZARA, which is a joint venture between the governments of Tanzania and Zambia, was established over 40 years ago with technical and financial support from China.

But currently, the railway company has been facing serious operational problems.
The company currently has total debts amounting to over US $60 million owed to various institutions.

Industry sources recently disclosed that the Zambian government was in talks with the Tanzanian authority to have the railway line concessioned to the Chinese.

Labels: CHINA, MoU, TANZANIA, TAZARA

posted by MrK @ 4:36 AM