Economy

Govt to sign 30 years $1.4 billion TAZARA concession deal with Chinese firm

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Government is expected to sign a US$1.4 billion concessional agreement next month with China Civil Engineering Construction Corporation (CCECC) to rehabilitate the Tanzania-Zambia Railway Authority (TAZARA) under a proposed Public-Private Partnership (PPP) arrangement.

The 30-year concession includes major infrastructure upgrades during the first three years, positioning TAZARA as a key driver of trade and economic growth between Zambia and Tanzania.

Transport and Logistics Minister, Frank Tayali, confirmed the development, noting that the agreement, first initiated during the Zambia International Mining and Energy Conference (ZIMEC) last month, is nearly finalised.

“China Civil Engineering Corporation is the company recommended by the Chinese government for this project. We’ve held nearly 11 rounds of discussions and are 98 percent there. We’re hopeful to sign the agreement next month,” Tayali said during an appearance on ZNBC’s Sunday Interview programme.

He appealed to TAZARA workers to maintain industrial harmony to avoid jeopardising progress.

“This is no time for industrial disruption. Continued harmony is vital so that issues like salary arrears can become a thing of the past,” he said.

Tayali also highlighted the growing costs of road maintenance due to bulk cargo transport, stressing the importance of shifting heavy goods movement to rail.

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