The State Procurement Board (SPB) of Zimbabwe announced that six investors submitted proposals for the recapitalisation of the state-owned National Railways of Zimbabwe (NRZ). Due to the reduction in volumes and failure by its shareholder to inject new capital, NRZ has struggled financially and has a debt of over USD 140 million. NRZ requires a minimum injection of around USD 400 million to revamp its operations and went to tender seeking a partner to recapitalise.
While over 20 firms had expressed serious intentions to invest in the company in a debt or equity deal, only six bids were unveiled. Of the six, only three appear to have met the tender requirements.
The three are a Swiss firm, Crowe Horwath Chartered Accountants, which said it could secure funding amounting to USD 2,5 billion, a local firm, Croyeaux Private Limited, which proposed to inject about USD 700 million, and South Africa’s Transnet in partnership with a local firm, Diaspora Infrastructure Development Group, which could provide USD 400 million.
China’s Sino Hydro’s offer was unsubstantial, while China Civil Engineering asked for a late submission. The sixth firm, SMH Rail of Malaysia, said it could re-manufacture some of the infrastructure and submitted a tender with a funding proposal of about USD 101 million.
The NRZ board will come up with a recommendation on the winner within the next weeks.
Share on:
