NRZ recapitalisation project to get funding

NATIONAL Railways of Zimbabwe (NRZ) has been guaranteed a funding of US400 million from the Diaspora Infrastructure Development (DIDG) and South African rail, port and pipeline company –Transnet – towards infrastructural development.

This was revealed in a statement released on September 10.

NRZ kick-started its recapitalisation project in 2017 with a pre-bid conference which attracted over 80 investors, with the DIDG/Transnet Consortium winning the bid.

In statement signed by NRZ board chairman Martin Dinha, a meeting and joint plenary session were held between the NRZ board and stakeholders.

The two agreed and recommended that government – which is managing the project through Treasury – pursue the offer of US420 million funding by the consortium, with US$20  million of the fund going towards working capital (funds for day-to-day use).

The offer/proof of US$420 million funding from DIDG through AfriExim Bank be referred to Treasury to pursue and consider, inter alia, the availability of the said funding,” read an NRZ statement.

NRZ now awaits approval from government to start the project in terms of provisions of the Joint Venture Act.

The NRZ should await guidance from Treasury on the availability of the said funding where after, subject to such guidance as may be given by Treasury, the project be progressed in terms of the provisions of the Joint Ventures Act as previously directed by Cabinet and communicated to NRZ through the letter from the Transport and Infrastructure Development minister, dated October 16, 2017 to the NRZ,” NRZ added.

DIDG and Transnet consortium confirmed that they had the shareholders’ approval.