Published: 21 October 2013

GOVERNMENT has injected $4 million into cash-strapped National Railways of Zimbabwe (NRZ) towards the rehabilitation of the rail network throughout the country.

The funding would help restore viability at the railways company which has struggling for over a decade due to undercapitalisation, ageing equipment and a decline in business since the turn of the millennium.

Public relations manager, Fanuel Masikati, said the funding was from government's Public Sector Investment Programme (PSIP).

The NRZ was allocated $9 million to fund capital projects but has received $4 million.

Masikati said the NRZ was expecting to receive the balance of $5 million before the end of the year.

"Yes, so far we have received $4 million from government from our 2012 Public Sector Investment Programme," Masikati said.

"We now expect to get the balance of $5 million from our $9 million allocation before the end of December."

The NRZ requires about $2 billion for its short, mid and long-term recapitalisation programme.

The company is also in serious debt, making it impossible to turn the corner without government or external help.

Currently, NRZ, which provides passenger and freight services, is operating below 30 percent capacity due to lack of capitalisation and has been failing to pay salaries.

The company has also deposited $2,9 million to purchase 14 locomotives from  China's biggest train maker CSR Corporation Limited. The total cost of the locomotives from China is $29 million.
- fingaz

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