By HELLEN TEMBO
THE Government has injected US$3.2 million in the Tanzania Zambia Railway Authority (TAZARA) as part of its continued efforts to revamp the institution so that it operates in a sustainable and profitable manner.

. SIMBAO

Transport and Communications Minister Kapembwa Simbao said the Government had also disbursed $11.2 million to dismantle salary arrears for October to December last year and paid salaries for January to April this year for TAZARA employees on the Zambian side.
The minister said K34,491,271 was used to pay 980 retirees, retirement packages for TAZARA employees, and the grant was further allocated towards dismantling fuel debts which had accumulated over the last 10 years.
Mr Simbao said during a Press briefing yesterday that $2,023,624 was paid to various fuel debtors in Tanzania and Zambia.
To improve TAZARA’s operational efficiency, the grant is also being used to purchase monthly fuel and lubricant requirements for the firm.
Mr Simbao said the Government had implemented some measures intended to transform TAZARA by recruiting a managing director and the deputy managing director.
“The managing director and his deputy were recruited to ensure that TAZARA management is held accountable in results, of which we have signed a performance-based contract with clear performance targets with the new managing directors,” Mr Simbao said.
Tanzania has equally allocated $20.8 million to pay salaries for Tanzanian-based employees and provide working capital for operating costs.
Additionally, Tanzania has released $6.7 million for retirees for that country.
Mr Simbao said the Chinese government had also provided $40 million to revamp the institution.
He said TAZARA had in the past been performing below standards, yet the demand for railway services had increased.
The Government has, therefore, engaged Konkola Copper Mines (KCM) and Dalbit for the freight of copper and transportation of petroleum products.
Meanwhile, the Government is disappointed that Fastjet has withdrawn its intentions to set up operations in Zambia.
Mr Simbao said the newly-appointed executive chairperson of Fastjet informed the Government that the new management had decided to shelve the Zambia investment portfolio owing to unfavourbale global economic conditions.
He said Fastjet remained committed to invest in Zambia once the negative economic conditions changes.
“While Government is considering establishing its own airline to help diversify the economy, we stand ready to invite new investors in the domestic aviation sector,” Mr Simbao said.