Sweet Turkish deal for NRZ

13 Jun, 2021 - 00:06 0 Views
Sweet Turkish deal for NRZ

The Sunday Mail

News Editor

THE National Railways of Zimbabwe (NRZ) is in line to soon receive fresh capital injection after signing a Memorandum of Understanding (MOU) with top Turkish construction company, Yapi Merkezi, on collaboration in the rehabilitation and modernisation of railway infrastructure.

Yapi Merkezi is constructing a US$2 billion high-speed railway line in Tanzania and the company’s managing director is bullish that the highly-rated firm “will come up with a deal that pleases the people of Zimbabwe.”

A team of experts from the Turkish company is expected to visit Zimbabwe soon to conduct feasibility studies.

Speaking after the signing ceremony in Istanbul, Turkey last Thursday, NRZ board chair Advocate Martin Dinha said the MOU signals the transformation of the country’s transporter of bulk goods as the partner has favourable financing models.

“We are going through a phased recapitalisation drive to restore operational capacity and return to profitability in the short term. The recapitalisation project will involve the rehabilitation and renewal of plant, equipment, rolling stock, track, signalling and telecommunications infrastructure and the supporting Information Technology (IT) systems. So the signing of the MOU with Yapi Merkezi is a milestone development because our partner has expressed interest in the modernisation of the NRZ.”

Advocate Dinha said the MOU defines the basic aspects that govern the relationship between NRZ and Yapi Merkezi in relation to the technical, commercial and financial studies.

“So we are exploring mutual co-operation in the following areas: removal of cautions; re-railing worn out sections and turnouts; tunnel rehabilitation and bridges upgrade; upgrading buildings and facilities; maintenance and systems installations; train control systems; level crossing equipment, data network upgrade; electrical equipment rehabilitation; Yard Track Rehabilitation; Signalling of Yard and training of NRZ personnel.”

Yapi Merkezi General Manager Mr Ali Aslan Uzun said the company will table various financial models to NRZ.

“We have the capacity to overhaul the railways network for Zimbabwe because we have done similar projects before in Africa. We secured a $1, 92 billion contract to build a 422 km high-speed electric railway line in Tanzania. We are responsible for designing and constructing the railway line. The works include replacement of the existing century-old narrow-gauge line between Morogoro and Makutupora with a new standard-gauge railway. So we are a tried and tested construction company and we have various financing models which we are discussing with the National Railways of Zimbabwe. We have faith and confidence that after the signing of this MOU we will visit Zimbabwe and do our assessments and thereafter come up with concrete next steps. But we believe we will come up with a package that will please the people of the Republic of Zimbabwe”, said Mr Uzun.

Zimbabwe’s Ambassador to Turkey, Mr Alfred Mutiwazuka, who witnessed the signing ceremony, said Yapi Merkezi is a renowned company.

“The signing of this MOU is a momentous occasion for us because it is a clear signal that the economic engagement we are having as an embassy and as a country is on course. My meetings and interactions with Turkish government officials and business people have so far been pointed and fruitful. Secondly, this is going to send a good signal to other would be investors because Yapi Merkezi is a huge international company. We are confident that other huge companies will be confident to invest in Zimbabwe.

“We need to sign a number of Memoranda of Understanding with the government of Turkey. We are targeting 12 by the end of this year. I have engaged the Turkish Airlines regarding its commencement of flights to Harare and the prospects are positive. This would certainly ease the movement of people and cargo and boost tourism and business between the two countries”, said Ambassador Mutiwazuka.

Yapi Merkezi is a globally renowned brand in the field of rail technologies. The company ranked 78th in the 2020 list of “top international 250 contractors.” The NRZ requires a capital injection of US $400 million in the short to medium term to return to profitability.

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