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- Jul 30, 2008
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TPSF Chairman Dr Reginald Mengi (R), Executive Director Godfrey Simbeye (L) and board member Dr Gideon Kaunda (2nd-R) listen to IFC Country Representative Dan Kasikye at breakfast talks in Dsm.
Tanzania Private Sector Foundation (TPSF) has reiterated its stance that locals are capable of meaningfully investing in gigantic projects, calling on the government to trust and support them.
The position was made by TPSF Chairman Dr Reginald Mengi at a breakfast meeting the foundation organised in Dar es Salaam yesterday to discuss the railway infrastructure in Tanzania and East Africa in general as a critical agent for economic transformation.
He said the challenges facing the Tanzanias railway sector are an investment opportunity for the private sector, adding that the business community only asks for trust from the government and to be given opportunities to run the infrastructure.
The governments contribution to improving businesses is to build better railways It is the responsibility of the government to create a conducive environment and infrastructure for the business community, said Dr Mengi.
He said that for the country to succeed in improving railway transportation services through Private Public Partnership (PPP), the government should construct rail tracks and leave other things such as coaches to the private sector.
It is very sad that some people are misleading the public that locals dont have the financial muscle to run major projects while the reality is that Tanzanians are capable of undertaking big investments, he noted.
Dr Mengi admitted that investing in the railway sector requires huge investment, which he said should not be a reason to deny locals the opportunity because they know how and where to get the fund needed form the purpose.
We are able and we know how to get the funds We can also source them from where foreign investors do, he said.
He also appealed to members of the business community interested in engaging in the development of the railway industry to observe ethics.
Try to avoid corruption, if you are going to do this business. You should set up a good example since there are a lot of opportunities in developing the sector, he said.
Gabriel Migire, Director of Policy and Planning in the Transport ministry, meanwhile said the doors are wide open for Tanzanians to access and use railway services under PPP.
He said the move would help ease the challenges facing the industry, adding that some private companies have already shown interest in investing in the railway sector which is crucial for the development of Tanzania.
We have Said Salim Bakhressa who has partnered with Tanzania Railways Limited in the Central Line. More private companies are invited to come up and develop the industry, said Migire.
He revealed that the government is finalising plans to build a railway line from Dar es Salaam to Isaka with a new standard gauge, adding that the feasibility study was completed in February and the World Bank has agreed to support the project.
We are not going to uproot the old railway line. We will build new ones to link some regions, and as far as beyond Tanzanias borders, he said.
Tanzania Railway Limited official Richard Lawuo said the company is facing a raft of challenges, including old locomotives, shortage of working capital, old technology, poor remuneration for workers and shortage of skilled staff.
However, he said there are various opportunities in the industry, since Tanzania is the natural gateway to East and Central Africa.
Lawuo explained that despite the challenges cited, TRL is confident that it will increase the number of cargo transported per year from the current 200,000 tonnes to 3 million tonnes in a few years.
Wenceslaus Kamugisha, a representative of Malaysian Railway company SMH Rail, said they have signed a contract with TRL to remanufacture eight locomotives.
We have completed the job, and its our hope that the move would help TRL operate more efficiently, he said.
TPSF Executive Director Godfrey Simbeye said the contribution of private sector in reviving the railway sector is crucial, adding: Railway services are of paramount importance to Tanzania as the country has entered the gas economy, which is likely to increase transportation demands.
Speaking to Tanzanians living in London, earlier this year, Prime Minister Mizengo Pinda said new railway lines to be built by the government would cost a total of USD 7 billion (some 11.4trn/-).
One would run from Dar es Salaam to Burundi via Isaka and another from Tabora to Kigoma, with an extension from Tabora to Mwanza and a section between Kaliua to Mpanda.
SOURCE: THE GUARDIAN