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Oliver Kazunga, Senior Business Reporter

THE Diaspora Infrastructure Development Group (DIDG) has made submissions to the National Railways of Zimbabwe (NRZ) following the appointment of AfreximBank as the mandated lead arranger and co-ordinating bank to mobilise US$400 million required to recapitalise the railways company.

In 2017, the DIDG/Transnet consortium won a tender to recapitalise and rehabilitate the NRZ under a US$400 million project. 

Recently, the Government said it had removed the exclusivity clause for the NRZ recapitalisation deal after DIDG/Transnet failed to provide proof of funding within 12 months of the framework agreement.

And in February this year, Cabinet extended the framework agreement period of the project to this month to finalise outstanding issues.

Speaking from his South Africa base yesterday, DIDG executive chairman Mr Donovan Chimhandamba said: 

“We have made our submissions to NRZ board and wait for the board to resolve on way forward which is to proceed to signing the joint venture agreement. This (joint venture) will allow for us to start implementing the project.”

He expressed optimism that implementation of the project would begin before the end of the year saying the signing of the joint venture agreement also paves way for the financial closure of the project. 

“With Afreximbank on board, their knowledge of Zimbabwean market and demonstrable history of funding Zimbabwe, the project is on a solid footing.

“Yes, the signing of the joint venture agreement paves way for financial closure to be reached and allows implementation to commence. 

“We will begin the work of corporatising the new joint venture company and getting all permits and licences in place,” he said.—@okazunga