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TRC concession talks concluded
2006-11-09 08:45:17
By Judica Tarimo
Concession talks between the government and M/S Rites Consortium of India to hammer out a final deal on privatization of the Tanzania Railway Corporation (TRC) have been concluded.
”I am happy to announce that we are heading towards the right direction. The government is absolutely satisfied with both the negotiations and conclusion,” said Infrastructure Development Minister Andrew Chenge in a telephone interview.
Government officials and the investors have been holding closed-door meetings in Dar es Salaam to finalize negotiations and facilitate subsequent signing of the concession agreement.
”The government team did a commendable job. They deserve praise. They managed to negotiate in accordance with government parameters,” said Chenge.
Initially, the handling over of the facility was scheduled for September this year, but had been postponed after parties to the talks failed to reach a mutual consensus on modalities and terms of agreement.
Government officials have said that the delays were caused by what they termed as struggle for a win-win situation and favourable terms.
”We are satisfied with what both sides (government officials and investors) have agreed in terms and modalities,” said Chenge.
Recommendations on the agreement, he said, would be forwarded to the cabinet for further decision and official endorsement.
After the cabinet’s approval and signing of the agreement, the investor will take over the facility.
The minister declined to specify when cabinet would convene to approve the deal.
”Protocol does not allow me to tell you when the cabinet will meet for this issue. The most important thing is that the talks have been impressive and the ministry is satisfied with the outcome,” he said.
Fresh negotiations on TRC privatization started after Eid El Fitr celebrations. The government is represented by the Presidential Sector Reform Commission (PSRC) in the talks.
The investor and government had been debating on the terms of operation, with each side seeking favourable terms.
Local newspapers quoted cabinet ministers as saying the government was cautious not to enter into privatization contracts that would not benefit the country.
The government had been pushing for speedy conclusion of the talks in an attempt to rescue TRC from further deterioration.
”Our railway facility is under pathetic condition. We are losing a lot of money,” said Chenge.
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