|
Tazara needs strategic investors, House told
2008-04-22 10:38:51
By Judica Tarimo, Dodoma
Tanzania and Zambia are looking for a strategic investor for the Tanzania-Zambia Railway Authority (TAZARA), which is currently facing a serious operational and financial crisis.
Infrastructure Development deputy minister Dr Makongoro Mahanga announced yesterday in the House when responding to a supplementary question posed by Khadija Salum Al-Qassim (Special Seats,CCM).
The legislator had wanted to know what strategies the government had put in place to rescue Tazara from further deterioration.
The legislator admitted that Tazara was currently in a crisis as engines, locomotives, coaches and many operational equipment and machines were now in very bad shape.
``However, the two governments, Tanzania and Zambia, are now struggling to get strategic investors…arrangements to secure an investor for the
facility have already started,`` said Mahanga.
As part of government drives to recure investors for Tazara, according to Mahanga, President Jakaya Kikwete recently held talks with the Chinese government during his visit to the country.
``In the course of discussions, the Chinese government agreed to cancel accumulated debts to Tazara amounting to USD500m so as to boost the authority and relieve it from financial crisis,`` clarified the minister.
The Chinese government, according to the minister, had also agreed to support Tanzania and Zambia in securing Chinese investors to run the facility.
``In fact, the Chinese government has expressed readiness to assist Tanzania to find and scrutinize an appropriate Chinese company or expert that would handle the facility,`` he stressed.
Mahanga said the government was trying to resolve other Tazara`s managerial and operational problems while the process for searching for strategic investors was going on.
``We have not abandoned it completely…the government is taking necessary steps to stabilise operations and financial performance of the authority as consultations and talks on the best investor are proceeding,`` according to the minister.
Responding to the basic question from the same MP, Mahanga said the two governments had made efforts to improve Tazara`s operational performance during the past several years.
Both the Tanzania and Zambia governments exempted the railway company from taxes on spare parts and other materials which it imports from outside to support its operations.
For years, he said the two governments, through their annual budgets, had been allocating funds to Tazara to enable it repair damaged and problematic railway line stretches and improve its communication infrastructure and system.
|
