The US$400 million National Railways of Zimbabwe (NRZ) recapitalisation deal between the government and Transnet hangs in the balance after cabinet has expressed reservations over the credibility and capacity of the South African company to award it the tender.
Prospects of reviving the NRZ have once again been shrouded with controversy amid reports that Transnet Consortium which had won the bid to recapitalise the parastatal under the US$400 million deal has no capacity to do so.
After vetting the bid by the South African company which had partnered Zimbabwe business people living in the Diaspora, cabinet expressed a lot of reservations to award the tender to the South African company reveals the Transport and Infrastructure Development Minister, Dr Joram Gumbo.
Although the Transport Minister was diplomatic that the deal was put on hold, investigations by ZBC has it on good authority that the US$400 million recapitalisation bid won by Transnet has been reversed after President Robert Mugabe shot it down on grounds that cabinet exposed that the bidding consortium which promised to bring new wagons had refurbished some of its old fleet in Botswana which dismally failed the test run.
Information privy to the ZBC show that government is now in talks with a Chinese company which might be awarded the tender after demonstrating its capacity during preliminary engagements.
