BARELY four days after canceling the Diaspora Infrastructure Development Group (DIDG) deal, President Emmerson Mnangagwa has signed a new agreement with a Russian firm that will see the National Railways of Zimbabwe (NRZ) receive 100 wagons.
The deal worth US$10 million, however, could trigger a legal battle with DIDG who are still weighing their legal options in the aftermath of government’s decision.
Government has warned that it will re-tender the NRZ deal following their fallout with the consortium.
DIDG accused goverment of “malice”, adding they were dealing in bad faith after government cancelled the US$400 million DIDG deal to recapitalise NRZ.
On its part, government insists DIDG failed to meet contractual timelines and also failed to show it had the financial backing to complete the project of recapitalising the ailing NRZ.
Zim Morning Post understands Mnangagwa Tuesday morning signed an agreement with Russian firm Uniwagon to receive 100 wagons for NRZ.
Frustrated by the lack of movement in re-engagement efforts with the United States and European Union, Mnangagwa has pinned hopes on Russia to unlock economic benefits for the southern African nation.
Mnangagwa flew out to Russia Monday night with his close associates revealing to the Zim Morning Post that the Zimbabwe leader was now focused on a fully-fledged relationship with the Eastern giant.
The Zimbabwe leader will be part of the inaugural Russia-Africa Economic Summit in Sochi, Russia, that gets underway Wednesday.
At least 46 other African Heads of State are at the summit which will be co-chaired by Russian President Vladimir Putin and African Union chairman President Abdel Fattah el-Sisi of Egypt.
In a pre-summit statement, Putin said Moscow’s was ready to expand its business interests on the continent.