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TANZANIAN CONCESSION AFFECTS RWANDA

Posted on 03 August 2009 by Railways Africa Editor

Rwanda Infrastructure minister Linda Bihire has told Tanzania that its railway concession agreement with Rail India Technical and Economic Services Ltd (Rites) will have to be “revised”, suggesting that it stands in the way of the proposed new standard gauge line from Dar-es-Salaam via Isaka to Rwanda and Burundi. According to East African Business Week (published in Kampala), “The revision of the contract is crucial in paving the way for the joint 
construction and eventual management of the Dar es Salaam- Isaka- Keza-Gitega-Musongati railway project. This will allow Rwanda, Tanzania and Burundi to be part of the new railway project under the co-management agreement the countries entered.”

In terms of the concession agreement, Rites holds 51% of Tanzania Railway Limited (TRL) and the government retains the rest. Rites has exclusive rights to manage the railway on a 25-year lease, running from 2007.

 Accompanied by Burundian minister of transport, posts and telecommunication Philippe Njoni, Minister Bihire met recently with Tanzania’s minister for infrastructure development Dr Shuhuru Kawambwa in Dar-es-Salaam. She was quoted saying: “The issue of exclusive rights to Rites came up during the meeting. We [infrastructure ministers] recommended that the government of Tanzania discusses with Rites to end their exclusive rights.”

The meeting was also attended by the permanent secretaries of the two countries’ infrastructure ministries. Issues discussed had been raised during studies carried out along the proposed new line from Isaka to Rwanda and Burundi. Minister Bihire is coordinating the multinational project.