Govt Cancels US$400 Million DIDG, NRZ Deal

The government has cancelled the US$400 million deal with the  Diaspora Infrastructure Development Group (DIDG) meant to revive the National Railways of Zimbabwe (NRZ) after the latter failed to provide proof of funding before the agreed deadline as well as excluding Transnet, which was part of the consortium.

This was revealed in a statement on Wednesday by Secretary for Information, Publicity and Broadcasting Services Ndavaningi Nick Mangwana. He said:

DIDG presented a funding structure based on funds sourced internationally, which excluded Transnet.

The exclusion of Transnet had a legal impact on the tender which had been awarded to them as a consortium. In light of the foregoing, the Government took a position to issue a new tender.

DIDG-Transnet consortium was awarded the tender by the then State Procurement Board in August 2017 and NRZ was given Cabinet authority to enter into negotiations with the consortium.

However, after the consortium failed to meet the timelines which spanned for one and a half years, the government has re-tendered the project.

More: The Herald