Sata wants RSZ concession examined
PRESIDENT Sata has directed newly appointed Justice Minister, Wynter Kabimba to examine the freight and passenger concession agreement involving the Government, Railway Systems of Zambia (RSZ) and New Limpopo Bridge Projects Investment which was signed in 2003.
According to a statement released by Special Assistant to the President for Press and Public Relations, George Chellah, the President said there was need to look at the concession agreement to preserve the national railway infrastructure from further deterioration since RSZ had allegedly failed to invest in the assets and improve operations.
Mr Sata said the railway sector was critical to the country’s economic development and that there was need for Government to resposition itself to improve the sector.
The MMD government decided to concession the freight and passenger services of Zambia Railways in March 2000 to the private sector and after a process of competitive bidding, the then Zambia Privatisation Agency (ZPA) awarded the concession to RSZ.
On February 14, 2003, the MMDgovernment signed a Freight Concession Agreement with RSZ and on August 18, 2003 signed the Passenger Concession Agreement.
RSZ took over operations of Zambia Railways Limited on December 3, 2003 and the concession covered the whole inter-mine railway network on the Copperbelt as well as the long haul railway network from the Copperbelt to Livingstone. / Times of Zambia