China respects decision to concession TAZARA: official

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Last updated at: (Beijing Time) Wednesday, February 18, 2004

China respects decision to concession TAZARA: official

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China will respect the decision by the Tanzanian and Zambian governments to concession the world-famous Tanzania-Zambia Railway (TAZARA) to private operation, should an ongoing feasibility study find it viable, a senior visiting Chinese official said Tuesday.

"China respects the option by the Tanzanian and Zambian governments to concession TAZARA to private firms or pursue other forms of cooperation," Fu Ziying, Chinese assistant minister of commerce said during the talks with Zambian Minister of Communications and Transport Bates Namyamba.

Tuesday's talks is the formal exchange of views of points between China as one side and Zambia and Tanzania as another on the issue critical to the future of TAZARA.

TAZARA is the symbol of Sino-African friendship. The Chinese government is very concerned with the future of the railway, he said.

Fu said the ownership of the railway has been transferred to the Tanzanian and Zambian governments. It is the wish of the Chinese government that the Tanzanian and Zambian governments could improve the management and increase their capital investment into the railway, so that the railway could have a more healthy operation for the benefits of the two countries.

He made it clear that the Chinese government will respect the decision of the Tanzanian and Zambian governments, should they eventually decide in favor of concessioning TAZARA to private companies.

However, he said the concessioning of the railway will be a very complicated issue, hence it is the wish of the Chinese side that the Tanzanian and Zambian governments will exercise great prudence in feasibility study and designing of reform schemes so that their final decision will prove sound and proper.

Fu said China will continue providing aid to TAZARA as its resources allow and will take a positive stance in exploring new model of cooperation with the Tanzanian and Zambian governments as TAZARA is concerned.

He said China expects further exchange of views of points with Tanzania and Zambia very soon.

Stretching 1,860 km from Tanzania's Dar-Es-Salaam to Zambia's Kapiri Mposhi, TAZARA was built between 1970 and 1975 and formally handed over the Tanzanian and Zambian governments in 1976.

The Chinese government provided a total of 500 million US dollars in interest free loan for the construction of the railway and technical and equipment support since its operation.

TAZARA has in the past decades become a symbol of the friendship between China and African countries.

In his part, Zambian Minister of Communications and Transport Bates Namyamba said TAZARA has played a most significant role in the economic development of not only Zambia and Tanzania but the whole eastern and southern African region over the years.

However, he said in the recent past, TAZARA has faced declining performance in its revenues and other key performance parameters.

For this reason, he said, the TAZARA council of ministers approved a recommendation of the TAZARA board in December 1998 to involve private sector in the running of the railway.

With assistance from the World Bank, a feasibility study is being conducted and will soon be completed to determine the best form of private sector participation in the running of TAZARA, he said.

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