HARARE A Chinese firm has frozen the National Railways of Zimbabwe (NRZ)s locomotive order over a US$27 million bill, derailing plans to rejuvenate the countrys train services.
The grounded NRZ was on the road to recovery after 10 years of maladministration and vandalism.
China North Railway Company (CNRC) had received a US$3 million deposit for locomotives from the NRZ in a deal valued at US$30 million. The company now wants full payment it will release the trains, and the NRZ has appealed to the government for the money.
The NRZ has just one working electric locomotive out of 10 and nearly US$274 million is needed to get the company back on its feet.
The current fleet has outlived its lifespan of 25 years and the World Bank has advised the NRZ to shut off 80 per cent of its railway track because it is unserviceable.
Post published in: News