Dar Es Salaam — The Chinese government will soon appoint a private Chinese entrepreneur to run the Tanzania-Zambia Railway Authourity (TAZARA) in partnership with the Tanzania and Zambia governments.

Tanzania's minister for infrastructure development, Mr. Basil Mramba, told Business Week in Dar es Salaam last week that the privatisation of TAZARA was awaiting a final word from the Chinese government.

The Chinese were given a one-year period to select and recommend to the two countries a private firm to operate the ailing TAZARA.

Mramba said Tanzania, Zambia and Chinese officials would meet in Dar es Salaam in November to work out ways for the privatisation of TAZARA.

"We are meeting in November 2006 to discuss the privatisation process and scrutinise a private firm that will be involved in the operations of TAZARA," he said.

The move follows conclusion of the World Bank and Chinese Government studies which have been handed over to the two countries for recommendation on the way forward of the privatization process.

In 2005, the Tanzanian and Zambian governments, through Tazara's Council of Ministers, issued a joint communiqué declaring that the Chinese would be given a first right of refusal in considering Tazara's Private Sector Participation (PSP) options.

A report has since been submitted to the two governments with recommendations on how best PSP could be introduced in TAZARA.

The two governments are still studying the recommendations, along with the other recommendations submitted by a World Bank sponsored study, which was undertaken by PriceWaterhouseCoopers.

In August 2006, a Chinese fact-finding team led by a Eximbank of China official visited TAZARA railway line from Tanzania to Zambia on a mission to establish certain facts on the ground.

They wanted to be knowledgeable about the railway company operations, capacity, business and environment.

Mr. Clement Mwiya, managing director of TAZARA, told Business Week in Dar es Salaam last week that the Chinese government sent a team of experts in two groups to undertake studies aimed at evaluating the current situation of TAZARA so that an informed decision could be made on whether or not to participate in the process of privatizing TAZARA.

"But TAZARA may not be the competent body to comment on the progress so far because the matter is in the hands of the two governments of Tanzania and Zambia," said Mwiya.

TAZARA, has since its inception, received more than US$ 2 million funding from the Chinese government in a protocol arrangement where it receives financing for equipment and maintenance every two years. This is done through loans which are usually shared 50-50 by Tanzania and Zambia.

The two governments have not yet decided on the mode of Private Sector Participation to be adopted for TAZARA.