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TRL concession contract is quizzed in Parliament
2008-04-26 09:51:12
By Guardian Reporter, Dodoma
The contract signed between the government and Rites company of India, which was commissioned on concession basis last year to operate the central railway line under the new name of Tanzania Railways Company Ltd (TRL), was on Thursday questioned in the House.
In his private motion, Opposition legislator Said Amour Arfi (Central Mpanda) said the process that led to signing of the contract was questionable, and pressed the government to provide detailed explanation on the matter.
`Tanzanians and the country at large are not benefiting from the contract…I want the government to review the contract and related shortcomings for the benefit of the country,`` Arfi said.
He said the new management, Rites Company, had not made any improvements in terms of efficient and improved passenger train and cargo services and improved working environment as expected by many Tanzanians.
Passengers and employees of the company were still suffering despite TRL takeover, which had remained a secret between government officials and the investors.
``I want the government to provide a detailed report on the whole process including sourcing of investors (Rites of India) and concession contract with the company.
In the report, the government should clearly indicate how many other partners (apart from government and Rites) have invested in the company,`` said the legislator.
The MP accused the investor of importing antiquated and old-fashioned technology, locomotives, spare parts and equipment from India to run the company (TRL).
He said Rites had secured loans amounting to USD 33million from the International Development Agency (IDA) and USD 44million from the International Finance Corporation (IFC) for improvement of the railway lines, facilities and systems generally.
``But documents show that before the privatization process, the former state-owned company (TRC), had applied for USD 77m loan from IDA and IFC for the same purposes. I want to know the position and the role which Rites Company played to secure this money which was applied for by TRC. It (Rites) came with nothing - no technology, no money, no equipment,`` he wondered.
``I am saying this is a long period, considering that the investors started operations, when Tanzanians did not know much it had invested as capital, with a lot of problems. Explanation from the government is very important in this case,`` stressed the MP.
The legislator recalled that the Infrastructure Development ministry had informed the House infrastructure development committee that the leasing contract would be reviewed after five years. He said in his opinion, and in view of the problems already facing TRL, five years was too long a period.
As we went to press, several members of parliament had been lined up to debate this private motion.
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