Summary of Proposed Investment
Project Number
25151
Company Name
Tanzania Railway Corporation
Date SPI Disclosed
Jun 22, 2007
Country
Tanzania
Industry
Infrastructure
Projected Board Date
Jul 26, 2007
Status
Completed
Sector
Rail Transportation
Department
Gbl Infrastructure & Natural Resources
Environmental Category
B - Limited
Previous Events
Approved : Jul 26, 2007
Signed : Sep 15, 2007
Invested : Jun 11, 2008
Project Description
The proposed project involves an IFC investment of up to $44 million to rehabilitate, develop and operate the approximately 2,700 route-km Tanzanian Railway Corporation (TRC) network, under a 25 year concession (the Concession or the project) granted by the Presidential Parastatal Sector Reform Commission of the Government of Tanzania (GOT), to a consortium led by RITES of India (RITES or the Concessionaire) through a new company, Tanzania Railways Limited (TRL or the company).
The TRC network extends across Tanzania, with connections to rail networks in Kenya and Uganda in the north, and the TAZARA network to Zambia in the south. The TRC network also transports transit freight between Dar es Salaam (the commercial capital of Tanzania on the east coast and one of the busiest ports in the region) and the land-locked countries of Uganda, Rwanda and Burundi as well as eastern Democratic Republic of Congo.
At present, the TRC network is owned and operated by TRC, a parastatal enterprise of the GOT. Since 2003, TRC has experienced substantial deterioration in its financial and operating condition, reporting consistent losses and a steady decline in equity. The main business of the TRC network is freight transportation and in 2006, TRC reported annual volumes of about 0.8 million tons of freight, down from approximately 1.4 million tons in 2003. In 2006, TRC also transported about 600,000 passengers per year, down from 685,000 passengers in 2003.
The TRC network extends across Tanzania, with connections to rail networks in Kenya and Uganda in the north, and the TAZARA network to Zambia in the south. The TRC network also transports transit freight between Dar es Salaam (the commercial capital of Tanzania on the east coast and one of the busiest ports in the region) and the land-locked countries of Uganda, Rwanda and Burundi as well as eastern Democratic Republic of Congo.
At present, the TRC network is owned and operated by TRC, a parastatal enterprise of the GOT. Since 2003, TRC has experienced substantial deterioration in its financial and operating condition, reporting consistent losses and a steady decline in equity. The main business of the TRC network is freight transportation and in 2006, TRC reported annual volumes of about 0.8 million tons of freight, down from approximately 1.4 million tons in 2003. In 2006, TRC also transported about 600,000 passengers per year, down from 685,000 passengers in 2003.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mr. S.K. Seth
Group General Manager
RITES Bhavan, 1, Sector-29
Gurgaon – 122001, India
skseth@rites.com
TEL: +91-124-257-1630
www.rites.com
Mr. Nshoya Magotti
Principal Consultant
Presidential Parastatal Sector Reform Commission
Plot No. 220/50, Mirambo Street, PO Box 9252
Dar-Es-Salaam, Tanzania
magotti@psrctz.com
TEL: +255-22-211-7988/9
www.psrctz.com
Group General Manager
RITES Bhavan, 1, Sector-29
Gurgaon – 122001, India
skseth@rites.com
TEL: +91-124-257-1630
www.rites.com
Mr. Nshoya Magotti
Principal Consultant
Presidential Parastatal Sector Reform Commission
Plot No. 220/50, Mirambo Street, PO Box 9252
Dar-Es-Salaam, Tanzania
magotti@psrctz.com
TEL: +255-22-211-7988/9
www.psrctz.com
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster