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Tanzania to invite bids for stake in state rail

Discussion in 'Jukwaa la Siasa' started by nngu007, Jun 2, 2011.

  1. nngu007

    nngu007 JF-Expert Member

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    By In2EastAfrica - Thu Jun 02, 2:21 pm



    [​IMG]Transport minister Omar Nundu


    Tanzania said on Wednesday it would invite fresh bids for a stake in its railway company after the termination of a concession deal with India’s Rites Limited before the end of next year.
    Rites, which owns 51 percent of Tanzania Railways Limited (TRL), has already signed a deal with the government to sell its stake in the joint venture, Transport Minister Omari Nundu told a parliamentary committee.
    TRL was established in 2007 as part of a 25-year concession deal to improve the country’s main railway network. The government retained a 49 percent stake.
    But the privatisation deal failed to revive the network, with the company frequently hit by financial difficulty and workers’ strikes over salary delays.
    “Following the unsatisfactory performance of TRL, the Ministry of Transport and Rites of India agreed to terminate the contract and a deed of settlement has already been duly signed between the two parties,” Nundi said.
    He said the government was now seeking the approval of the World Bank’s private sector arm, the International Finance Corporation (IFC), to buy back 100 percent ownership of the company as an interim measure.
    The IFC had extended a $44 million loan to TRL after the joint venture deal was sealed, but the privatisation of the railway firm has been largely unsuccessful.
    “The full state ownership of the railway company would only be for a transitional period while the government seeks another investor,” the minister said.
    The government had provided a 4.12 billion shillings ($2.66 million) bail-out to TRL by February for working capital and to settle some of the company’s debts in addition to 13.868 billion shillings disbursed by the state for staff salaries.
    Nundu said the railway’s passenger traffic declined 46 percent last year, while the annual cargo haul also fell 43 percent to 256,190 tonnes from the previous year.
    Reuters
     
  2. nngu007

    nngu007 JF-Expert Member

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    Hapana wahindi, wasouth-africa na wachina please !!!
     
  3. N

    Ndinani JF-Expert Member

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    Huyu bwana nasikia amegoma kabisa wala hataki kusikia habari za kufufua shirika la ndege ATCL badala yake sera yake ni kuimarisha ndege za kampuni ya 540 na precision Air ambao inasemekana wamemfadhili kuanzisha mfuko wa kuwakopesha wafanyabiashara wadogo wadogo huko Tanga!! Kwa mtindo huu Kikwete ajue ATCL inamfia mikononi!!
     
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