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The Diaspora Infrastructure Development Group (DIDG) says it will pursue the US$400 million National Railways of Zimbabwe (NRZ) recapitalisation deal to the end following its cancellation by the government last year.
DIDG chairperson Donovan Chimhandama told NewsDay Business that the consortium will continue pursuing all options at its disposal with the singular aim of implementing the transaction. Said Chimhandama:
<blockquote>There hasn’t been much movement because of this lockdown. They wrote to us saying they intend to cancel the tender.
They asked for a meeting but at the moment because we are not allowed to travel, there isn’t much we can do.
There hasn’t been any progress but our position still stands, we are pursuing NRZ to the end.</blockquote>
In 2019, the Zimbabwean government cancelled the US$400 million deal signed more than two years ago with the DIDG saying the group had failed to comply with contractual timelines.
After the termination of the deal, DIDG threatened NRZ with a US$215 million lawsuit for missed opportunities and other related costs.
<h4>More: <a href="https://www.newsday.co.zw/2020/05/didg-vows-to-pursue-nrz-deal/" rel="noopener noreferrer" target="_blank">NewsDay</a></h4>

Pindula News

DIDG 'Pursuing NRZ Deal To The End'

A Canadian Firm through former South African President Kgalema Motlanthe approached the president whilst he was in Mozambique to negotiate a railway upgrade deal on behalf of a Canadian firm Ivanhoe Mines Limited, The Herald reports
This was revealed by President Mnangagwa when he spoke to journalist in Mozambique before he returned home. The president said:
<blockquote>He (Motlanthe) had a very interesting project. There is a company in the DRC and it’s a huge Canadian company which has investments in South Africa and also in the DRC.
They would want to modernise the railway line from DRC through Zambia, Zimbabwe and South Africa and this requires the cooperation of the four States.</blockquote>
Ivanhoe Mines’ bid is coming a few short months after diaspora investment group DIDG’s bid to recapitalise NRZ fell apart and the government ordering <a href="https://www.pindula.co.zw/National_Railways_Of_Zimbabwe">NRZ</a> to retender the project.
More: <a href="https://www.herald.co.zw/canadian-firm-to-upgrade-zim-railway-network/">The Herald</a>

Canadian Firm To Upgrade Part Of Zimbabwe's Railway - Report

The government has instructed NRZ to quickly flight new recapitalisation tenders after the NRZ DIDG tender fell apart, The Herald reports.
This was revealed by Transport Minister Joel Biggie Matiza in Matopos at the parastatal’s strategic meeting. Matiza said:
<blockquote>I urge you to urgently finalise the matter and proceed as directed by Cabinet.
As I indicated earlier, our guiding blueprint for this period is the <a href="https://www.pindula.co.zw/Transitional_Stabilisation_Programme">Transitional Stabilisation Programme</a> and this is one of the success factors identified by Government.
It is thus critical to point out Government’s view and the need to continue addressing the challenges at NRZ.</blockquote>
NRZ and DIDG’s <a href="https://news.pindula.co.zw/2019/10/27/termination-of-us400m-nrz-didg-deal-raises-more-questions/">deal fell apart after they failed to agree on the controlling stake DIDG would have in NRZ.</a> The government has since ordered NRZ to retender the recapitalisation project.
More: <a href="https://www.herald.co.zw/govt-orders-nrz-to-source-new-capital/">The Herald </a>

Government Instructs NRZ To Quickly Flight New Recapitalisation Tenders

The <a href="https://www.pindula.co.zw/National_Railways_Of_Zimbabwe" rel="noopener noreferrer" target="_blank">National Railways of Zimbabwe (NRZ)</a> board is reluctant to re-tender the entity’s US$400 million recapitalisation deal as directed by the Minister of Transport <a href="https://www.pindula.co.zw/Joel_Biggie_Matiza" rel="noopener noreferrer" target="_blank">Joel Biggie Matiza</a>.
The NRZ Board is wary of implementing the minister’s directive for fear of legal action by the Diaspora Infrastructure Development Group (DIDG).
The Independent’s source corroborated those concerns that the board has in regards to the re-tendering of the deal.
<blockquote>The board is well aware of the legal implications of carrying through minister Matiza’s directive to re-tender the project.
The board is mindful that an insolvent NRZ cannot afford to be dragged to court, in what appears to be a protracted lawsuit against the well-resourced consortium.
This is why there is a lot of hesitancy on the part of the board to re-tender the project in line with the cabinet decision. However, there are other considerations apart from the legal consequences.</blockquote>
In October, Cabinet made the decision to cancel the NRZ’s US$400 million tender awarded to DIDG in 2017 but the consortium instructed its lawyers, Atherstone and Cook Legal Practitioners, to file a US$215 million lawsuit against the parastatal.
<h4>More: <a href="https://www.theindependent.co.zw/2019/12/13/nrz-board-defies-matiza-over-us400-million-deal/" rel="noopener noreferrer" target="_blank">The Independent</a></h4>

NRZ Board Reluctant To Re-tender Recapitalisation Deal

The Diaspora Infrastructure Development Group (DIDG) has responded to a report that Transport Minister <a href="https://www.pindula.co.zw/Joel_Biggie_Matiza" rel="noopener noreferrer" target="_blank">Joel Biggie Matiza</a> has announced the re-tendering of the <a href="https://www.pindula.co.zw/National_Railways_Of_Zimbabwe" rel="noopener noreferrer" target="_blank">NRZ</a> recapitalisation deal.
In a statement on Thursday, DIDG said the report was factually inaccurate and wanted to set the record straight. Part of the statement read:
<blockquote>The facts of the matter are as follows: proof of funding was provided timeously. The Herald has been provided with the proof of funding that includes funds from ABSA, Nedbank and other banks, with Afreximbank as the lead arranger. This a matter of fact, not speculation.
No contractual deadlines have been missed;
No cancellation has been communicated by the authorised legal body dealing with this matter. It is unprofessional to purport to cancel commercial agreements through newspapers;
The Joint Ventures Act is clear on remedies where equity partner changes arise, no legal issues arise from Transnet;
The only outstanding matter is the signing of the JV Agreement.</blockquote>
Last month, Secretary for Information, Publicity and Broadcasting Services <a href="https://www.pindula.co.zw/Nick_Mangwana" rel="noopener noreferrer" target="_blank">Ndavaningi Nick Mangwana</a> announced that government had cancelled the US$400 million deal with DIDG after it failed to provide proof of funding before the agreed deadline as well as excluding Transnet, which was part of the consortium.
<h4>More: <a href="https://www.herald.co.zw/nrz-deal-didg-responds/" rel="noopener noreferrer" target="_blank">The Herald</a></h4>

DIDG Speaks On 'Cancelled' NRZ Recapitalisation Deal

More questions than answers have been raised following cabinet’s decision to terminate the US$400 million National <a href="https://www.pindula.co.zw/National_Railways_Of_Zimbabwe" rel="noopener noreferrer" target="_blank">Railways of Zimbabwe (NRZ)</a> recapitalisation project which was awarded to the Diaspora Infrastructure Development Group (DIDG) in 2017.
The termination of the deal was announced by Information, Publicity and Broadcasting Service secretary <a href="https://www.pindula.co.zw/Nick_Mangwana" rel="noopener noreferrer" target="_blank">Nick Mangwana</a> nearly 24 hours after the routine weekly cabinet meeting and subsequently official briefing. Cabinet sources who spoke to The Independent said:
<blockquote>What is worth noting is that the surprise announcement by Mangwana to terminate the NRZ deal did not follow the normal procedure relating to most cabinet resolutions.
Coupled with that, it is also interesting to understand why the line minister (Matiza) could not take it upon himself to announce such a key resolution that has a bearing on the future of Zimbabwe’s critical rail network.</blockquote>
Meanwhile, the interested parties in the deal, the NRZ and DIDG both claimed that the cabinet has not yet informed them about the termination of the deal.
The issue has reportedly sharply divided the cabinet and sucked in the military, with Matiza keen on ending the deal in favour of a Dubai-based entity, Feonirich Investments LLC.
<h4>More: <a href="https://www.theindependent.co.zw/2019/10/27/nrz-deal-raises-new-questions/" rel="noopener noreferrer" target="_blank">The Independent</a></h4>

Termination Of US$400m NRZ, DIDG Deal Raises More Questions

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