The National Railways of Zimbabwe (NRZ) has said a Turkish company that plans to recapitalise and modernise its railway system, has completed a feasibility study on the project.
In 2021, NRZ and the Turkish investor, Yapi Merkezi, signed a memorandum of understanding to work together in the recapitalisation and modernisation of the rail network.
According to the agreement, Yapi Merkezi will fund the project and provide expertise for repairing NRZ’s rail tracks as well as in acquiring new coaches and wagons.
The line linking Hwange to Harare is set to be prioritised as most industries’ coal-fired plants get their coal from several mines in Hwange.
Speaking in an interview with The Standard, NRZ spokesman, Andrew Kunambura denied reports that the deal had collapsed. He said:
The Turks did not pull out. They conducted a feasibility study,which has since been completed and is awaiting presentation to NRZ for consideration.
Kunambura, however, declined to comment on the lawsuit filed by the previous suitor Diaspora Infrastructure Development Group (DIDG) over the cancellation of a deal to provide funding for NRZ’s recapitalisation.
Cabinet cancelled the US$400 million deal, which had been signed in 2018 on the grounds that DIDG had no capacity to fund the project.
DIDG chairman Donovan Chimhandamba told The Standard that they will first evaluate Zimbabwe’s economic climate to decide whether it is still wise to pursue their US$236 million case against NRZ over the termination. Said Chimhandamba:
As you are aware, we filed a declarator in the High Court for an order declaring that the conduct of the NRZ was unlawful. The lawsuit is still pending in our courts. It must be highlighted and understood that we did not seek a damages claim against the NRZ.
We don’t believe in a litigious process, especially against our own government or the NRZ, when it rather needs support to rebuild into the modern era of rail logistics.
We definitely don’t believe one can implement the NRZ project while at the same time in court.
In fact, a lot of things have since changed; COVID-19 happened, ministry leadership has changed, regional logistics infrastructure surrounding Zimbabwe has also since changed and the rail industry has seen some consolidations, rationalisations while rail majors have changed their strategic outlook and business strategies.
So, DIDG has to consider these and assess whether it is still strategic for it to pursue the lawsuit and also consider at the end of the day what’s best in the interests of our beloved country and NRZ in particular.