Govt negotiates ATCL privatisation
2008-08-15 10:02:41
By Njonanje Samwel
Negotiations between the government and a foreign strategic investor on the privatisation of the national flag carrier�Air Tanzania Corporation Limited�are at an advanced stage, it has been learnt.
Infrastructure Development deputy minister Hezekiah Chibulunje revealed the plans on Wednesday, moments after inaugurating the refurbished Tanzanite Lounge at the Julius Nyerere International Airport (JNIA).
The USD 350,000 facility, with the capacity of accommodating more than 100 passengers at a time, has been designed for first and business class passengers.
``Information about the ATC privatisation process is currently at government level. We are now holding talks with the Chinese firm on the possibility of taking over. We are yet to reach agreement. Members of the public will be informed of the outcome,`` he said.
The minister, however, declined to name the potential investor, but only said he said would come from China.
He said the move was geared towards boosting the efficiency of the state-owned national air carrier, being in line with government`s mission to improve the aviation sector.
``The privatization deal we are about to enter is part of government efforts of promoting the aviation sector.
An efficient national air carrier and modern facilities at major airports determine the development of any country in the world,`` he said.
When reached for comments, ATCL chief executive officer David Mattaka said he had no idea concerning the move.
ATC was established in March 1977 after the collapse of East African Airways and other regional institutions previously under the ill-fated East African Community.
In 2002, ATC was taken over by South African Airways before the government reclaimed all its shares in 2006.
Disengagement documents between ATCL and SAA were signed in Johannesburg on August 29, 2006.
The short-lived marriage was ended after the alleged dismal performance of the South African investor.
SOURCE: Guardian
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