HARARE (Zimbabwe Investor) - The 2010-2015 Medium Term Plan intends to open up the rail services to investors through funding by public-private partnerships (PPPs) involving the World Bank, investors and the Government. The document outlines how performance of the National Railways of Zimbabwe (NRZ) has been on the decline owing to resource and capacity constraints. The World Bank recently recommended that the NRZ should close down part of its network.

Minister Biti told Parliament in December 2009 that the World Bank and Zimbabwe should work in tandem as “…studies by a team of experts from the World Bank recently said that we should shut down at least two-thirds of the network because it is a disaster in waiting.”

However, NRZ spokesperson Mr Masikati has downplayed the World Bank and Minister Biti’s assertions stating that there would be ‘nothing of the sort.’ He argued that rehabilitation efforts are currently underway and pointed out that the parastatal will continue to operate as it is.

The 2010-2015 Medium Term Plan submitted to the World Bank and other international financiers’ details, strategies and projections that have been made by the inclusive government with regard to refurbishing and reviving its infrastructure.

The NRZ presently requires US$274 million to recapitalise.

Investors require such infrastructure as a fully functional railway network if they are to pump their money into the country’s economy. The NRZ is facing a serious lack of resources to maintain and replace its dilapidated infrastructure, which has been in use for well over 50 years.

The company plays a major role in the transportation of goods and materials for the mining, manufacturing and agricultural industries hence shutting it down would be suicidal to the economy according to local economists.

The NRZ is presently operating at between 30 and 50 % of its capacity because of a plethora of constraints.

The World Bank has previously pointed out that poor management and government bureaucratic interference are among a host of factors affecting the efficient operations of the NRZ.