China to take over Tanzania-Zambia Railway Authority (TAZARA)

Post By Diaspoint | December 20, 2023

A task force from the state-run China Civil Engineering Construction Corporation (CCECC) has arrived in Dar es Salaam to conduct a comprehensive business and technical inspection of the Tanzania-Zambia Railway Authority (TAZARA) before China’s proposed takeover of the railway line.

The CCECC is negotiating a concession deal with the governments of Tanzania and Zambia to operate TAZARA, as geopolitical tensions rise over control of trading routes for critical minerals in Africa.

The Chinese task force will carry out the inspection from Dar es Salaam to Kapiri-Mposhi to assess TAZARA’s operational and business model, setting the stage for the submission by CCECC of a revitalisation proposal for TAZARA to the shareholders of the railway line — the governments of Tanzania and Zambia.

CCECC, a subsidiary of the China Railway Construction Corporation, is expected to negotiate a public-private partnership (PPP) concession under the build-operate-transfer model with the two governments to operate TAZARA.

The Chinese company wants to upgrade the 1,160km cross-border railway by investing an estimated $1 billion.

“CCECC’s task force team will engage in substantive discussions covering critical aspects, including the operational and management model of TAZARA, the proposed financing plan facilitated by the China Development Bank, local taxation policies, and related matters,” TAZARA’s spokesman, Conrad Simuchile, said in a statement.

The 11-member Chinese due diligence team is led by Peng Danyang, Managing Director of the Ethiopia-Djibouti railway line.

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