Source(s) of financing ADF: 9210000 AfDB: 32500000 Government: 4670000
Implementing Agency: NATIONAL RAILWAYS OF ZIMBABWE
The project aims to help reduce the economic cost of rail transport and stem the costly diversion of traffic from rail to road. Thus, the project will support the asset restructuring of NRZ necessary to enable it to increase the utilization of its existing capacity, in order to cater effectively to the prospective demand for rail transport.
The project consist of the following components: (a) replacement of Centralised Traffic Control (CTC) equipment and a new telecommunications carrier on the Mutare-Harare line; (b) procurement of 56 passenger coaches; (c) procurement of 311 portable radios for train crew communications.
The main benefit of the proposed project will be reduced cost of rail transport and it will benefit the whole economy.
The Bank Group's previous intervention in the Transport Sector in Zimbabwe was related to roads only and considering the importance of the railways sub-sector both as a transport mode and as main player in the economy, a Bank Group loan to the railways sub-sector was considered timely.