Sunday, 9 September 2007

Rites finally takes driver’s wheel at TRL

From The EastAfrican, Nairobi, Kenya

Rites Consortium of India has finally taken over the running of the Tanzania Railways Ltd (TRL) on a 25-year lease after months of protracted talks between the group and the government.

However, the deal comes with several conditions including a moratorium on fare increases for the third class category -popular with passengers -and the investment of a $121 million in infrastructure over the next five years.

According to the agreement, a copy of which The EastAfrican has seen, $34 million will come from the sponsors while $77 million will come from the World Bank through the International Development Agency (IDA) -$33 million; and the International Finance Corporation (IFC) - $44 million.

TRL will be free to establish and revise tariffs with the exception of the third-class passenger fares.

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