NRZ to meet new investor on contract, financial closure

THE National Railways of Zimbabwe (NRZ) will meet its new investor, Diaspora Infrastructure Development Group (DIDG)/Transnet Consortium to deliberate on contractual obligations and financial closure on Friday.

NRZ public relations manager, Mr Nyasha Maravanyika, said the State Procurement Board (SPB) has approved a recommendation by NRZ to award a tender to fund the recapitalisation of the company to the Diaspora Infrastructure Development Group (DIDG)/Transnet Consortium.

“The NRZ is now geared for its next step in the recapitalisation project which is to engage the consortium for contract negotiations and financial due diligence to commence week ending 18 August 2017,” said Mr Maravanyika.

The consortium emerged winner ahead of six other organisations which had been shortlisted by the SPB.

The NRZ recapitalisation effort attracted immense interest from potential investors both local and international after the Government, through Cabinet, gave the company the go-ahead to go into the market to seek funding on 11 April 2017. More than 80 companies attended a compulsory pre-bid conference in Bulawayo on 30 May 2017.

He said when tenders closed on 4 July, six companies had met the required criteria and were shortlisted for the final selection.

The six companies were Sino Hydro, China Civil Engineering Construction Corporation, SMH Rail, TFR- Diaspora Infrastructure Development Group/ Transnet, Crowe Horwath and Croyeaux Limited.

The recapitalisation process was initiated to restore NRZ’s operational capacity and to ensure it returns to profitability. The NRZ system has a capacity to carry over 18 million tonnes of freight annually but is currently moving 2.7 million tonnes.

“The NRZ has a fleet of 168 locomotives, with 60 locos in service and more than 7 000 wagons of which 3 512 are in use,” said Mr Maravanyika.

The recapitalisation project will involve the rehabilitation and renewal of plant, equipment, rolling stock, track, signalling and telecommunication infrastructure and the supporting Information technology systems.