TAZARA, which is a bi-national railway jointly owned by the governments, Tanzania and Zambia on an equal shareholding basis, was constructed by the People’s Republic of China after failure by the two governments to raise take-off funds for the mooted mammoth project in the 1960s.
TAZARA chief executive officer Bruno Ching’andu called on statekholders for the cancellation of the over US$700 million debt, saying this is the only way to revamp the railway system, which is still struggling in its operations.
“The debts which the authority acquired in the past have negatively affected the operations of the authority. But, if these debts could be [cancelled], the institution can to get back to its normal operations.
“If we are to include debts for the constructions, the authority owes a total of US$700 million. But the most critical debt that we have is amounting to US$165 million,” Mr Ching’andu said.
He also said that with the current situation, TAZARA is unable to acquire financial assistance in form of loans from financial institutions making it impossible to capitalise the authority.
He said this has impacted negatively on the authority’s operations and further urged the two governments to look into the matter.
“If the railway became fully operational, the cost of commodities can be low because it is cheaper to load cargo on rail than on the roads. Our roads can also be preserved unlike the current situation where the roads are being abused,” he said.
The 1,860 kilometre-rail runs from Tanzania and East Africa’s major seaport of Dar es Salaam into the heart of Zambia’s Central Province, terminating at New Kapiri Mposhi, where it is further linked by road and rail to Lusaka (about 200km), Zambia’s mining nerve centre, the Copperbelt Province (about 100km) and the Democratic Republic of Congo (DRC).
I agree. Tazara needs a baioutl.
Why? To promote inefficiency?
Eager to accrue debt but have no plans of paying back…you seem to think money falls from the sky for others.
They didn’t want to forgive the post news, but they want to be forgiven?
That’s being irresponsible. Cancellation means someone somewhere is paying for YOUR failures. You don’t deserve that position of CEO.
Even if debt is cancelled, you’ll soon accrue more debt in a short time, with the hope that it’s gonna be cancelled again. They used the Eurobond to pay retirees & retrenchees. Just work hard & formulate a turn-around strategy, that’s why u got the job!
Just look at PF00LISH Govt: Even after cancellation of debts under HIPC, bcoz of CHIMBWI-NO-PLAN, they went back & F00LISHLY indebted the country with Eurobonds & Chinese loans & loans from local banks, etc. Now all the taxes we pay are going to debt servicing.
Immediately its cancelled they will run to the bank to get another one so they can run “normal” operations where they have fat salaries…instead of strieving to be the best.
Just pay. You borrowed. Why call for cancelation. This mentality is what is killing Africa.
Even they are the only gateway for copper transportation and the can not pay…
The motto of Lungu and the PF — BORROW AND STEAL!
Then leave the debt for our children to pay off.
I cannot pay you back the money I owe you, but please give me more money now. Totally laughable!!
Who are those “stake holders” whom TAZARA is indebted to? Is it Zambian GVT lobbying for financial bailout through TAZARA? Do the 2 GVTs finance the authority in its operations or it works as private entity without fundings from the 2 GVTs? SOLLI CHICHA IN ME CONFUSED…