CCECC begins work on comprehensive Tazara review, revamping hopes for revitalisation

Dar es Salaam. Almost a month after the Chinese government chose a subsidiary of China Railway Construction Corporation (CRCC) to negotiate a concession to operate the Tanzania-Zambia Railway line (Tazara), the company has already hit the ground running.

The China Civil Engineering and Construction Corporation (CCECC), a subsidiary of CRCC, has officially launched its comprehensive business and technical examination of the Tazara line, marking an important step in the railway’s long-awaited revitalisation.

The assessment, scheduled to end in April 2024, will deconstruct Tazara’s operational and business models, allowing CCECC to present an optimised rehabilitation proposal to the company’s shareholders.

“Following their appointment as negotiators for a potential Chinese operator, CCECC has formed a task force to conduct this comprehensive review,” stated Tazara’s Head of Public Relations, Conrad Simuchile.

This 11-member team, led by Mr Peng Danyang (Managing Director of Ethiopia-Djibouti Railway under a public-private partnership model), will delve into critical aspects like Tazara’s management structure, proposed financing facilitated by the China Development Bank, local taxation policies, and other relevant matters.

The review’s findings will refine and enhance the Tazara Revitalization Proposal, preparing it for a multi-layered assessment.

The proposal will be scrutinised by the Tanzania-Zambia Joint Technical Committee, followed by the Tanzania-Zambia Steering Committee, and ultimately presented to the Tripartite Working Group comprising Ministers from Tanzania and Zambia, alongside China’s Ambassadors to both countries.

“This multi-stage review process demonstrates the commitment to a thorough assessment and collaboration across various governance levels before Tazara is entrusted to a Chinese investor,” emphasised Mr Simuchile.

Underscoring the significance of these negotiations, the Tripartite Working Group has set April 2024 as the target for finalising discussions on Tazara’s revitalisation.

Tazara announced recently that the CCECC had been asked to submit its proposal on the assignment by the end of October 2023.

“The Board noted that China Civil Engineering Construction Corporation (CCECC), a subsidiary of China Railway Construction Corporation (CRCC), had been officially introduced by the Government of the People’s Republic of China as the company to negotiate with on the concession of Tazara and that a proposal from CCECC was expected by the end of October 2023,” reads the statement.

Last year, Tanzania and Zambia committed to upgrading Tazara to strengthen bilateral relations between the two countries.

Under the plan announced during Zambian President Hakainde Hichilema’s visit to Tanzania, the 1,160km cross-border railway linking Kapiri-Mposhi in Zambia with Dar es Salaam is to be upgraded to standard gauge through a partnership with the private sector and development partners.

President Samia Suluhu Hassan said the 1,067mm-gauge, single-track Tazara line does not deliver what was expected of it, and an upgrade was needed to open up new business opportunities along the route.

“In today’s world, railways are standard gauge. So, through a public-private partnership, we have agreed to come up with a project to improve Tazara to that level.”