FORMER Finance minister Ng’andu Magande says he agrees with a Southern African Development Community (SADC) technical report that railway concessions in the region have generally been characterised by declining performance.
The report further states that the concessions of the railway in the region had led to the deteriorating state of infrastructure as well as massive retrenchments and reduced business cooperation amongst railways in certain areas.
Mr Magande said the cancellation of a concession agreement with Railway Systems of Zambia (RSZ) by the Government was a welcome move as it was in line with the concerns raised in the 2009 SADC Technical Report on Railway Concessions in the Region.
Mr Magande, who was reacting to Government’s decision to revoke the concession agreement of the RSZ, said in an interview that the 2009 SADC Technical Report covers all railway concessions in the region and such agreements seemed to have failed.
He said the report might have been submitted to former president Rupiah Banda’s administration and no action was taken.
“I hope that this report and another SADC ones are the basis of the action by the Sata Administration as it (the report) clearly indicates the failures of the RSZ agreement,” Mr Magande said.
Finance Minister Alexander Chikwanda last week announced that Cabinet had compulsorily acquired the concession rights that were granted to RSZ and that the management of the railway network had been reverted to Zambia Railways Limited for the first time since 2003.
Mr Chikwanda said the move had been done in accordance with Cabinet’s mandate to safeguard the interests of the people of Zambia.
He said this measure was necessary because any additional delays would have resulted in further destruction of the railway assets, thereby making it more expensive for the planned upgrade of the railway necessary for it to meet regional and international standards.
He Chikwanda charged that RSZ had “blatantly” disregarded the provisions of the concession agreement signed in 2003.
Mr Magande said he started discussing the issue of RSZ agreement in 2003 when he joined the late Levy Mwanawasa’s administration.
“Being at the centre of Zambia’s development, I realised that a weak railway system would frustrate the country’s development.
“Through SADC Ministers’ meetings and in my earlier life I had become aware that other regional countries had cancelled railway concessions for non-performance,” Mr Magande said.
According to a technical report on the review of the effectiveness of railway concessions in the SADC region for the year 2009, a number of challenges seemed to have emerged following the concessioning of some railways in Southern Africa.
Some of the challenges include declining performance in certain areas, declining state of infrastructure, massive retrenchments, reduced business cooperation amongst railways in certain areas and reduced frequencies of passenger services.
However, the States subsidies to railways had been eliminated, thereby bringing about fiscal relief to the States concerned.
“As a result of the reduced capacity of such railways, some traditional rail traffic has since moved on to the road, causing immense damage to road pavements.
“The concessioned railways in the SADC region were each evaluated to determine if performance, both operational and financial, had improved since concessioning. Reasons for failure to achieve expectations were also examined,” the report states.
It states that several common causes were found in those concessions believed to be most lacking in performance.
“Failure to enact enabling legislation and to establish a railway regulator prior to concession. This was found to be the case in Zambia, Mozambique and Malawi.
“To a lesser extent the same was true in Zimbabwe, but that concession is unique in its concession process,” the report states.
The other problem examined was failure to have a clear understanding of the roles and responsibilities of the concessionaire and Government as relates to infrastructure rehabilitation and investment.
This was found to be the case in Zambia, Mozambique and Malawi.
“In the absence of enabling legislation and regulator, several concessions depended upon contract language to govern concession obligations. In most cases the contract language did not anticipate every circumstance and eventuality that might,” the report states.
[Times of Zambia]
Mr P Magande please, while it is true that the Sadc report in Rail Concession has highlighted failure it can not be said to be the basis of our president’s action on RSZ. The failure by RSZ was very vivid to Zambians as such the President so it very necessary and urgent to act decisevely as he did. Don’t go round circles or ukusabaila, sheeeeeeee be silent, let others work. If anything, who voted u the best minister kanshi? just wait for others to work while you nurse your issues. You will be called to comment when you are needed, thanks
First one to comment.
We have moved in the right direction to take it back.
YES! THE PREVIOUS GOVTs WERE VERY MUCH AWARE OF SERIOUS SHORT FALLS IN THIS (AND PROBABLY MANY OTHER CONCESSIONS) BUT THEY DECIDED NOT TO RESCUE THE PEOPLES’ COMPANY EVEN IN THE PRESENCE OF A FULL REPORT THAT TOLD THEM THAT THE CONCESSION HAS LAMENTABLY FAILED. THIS WAS TYPICAL OF MMD BECAUSE ALL MINISTERS WERE CORRUPT. MIND YOU NOT MAKING A DECISION (REMAINING SILENT) IS MAKING A DECISION, TOO.
BUT AS #1 HAS SAID, MAGANDE SHOULD JUST REMAIN QUIET AND JUST WAIT FOR THE TIME HE WILL BE ASKED. INSTEAD OF PER-EMPTYING THE SITUATION IN HIS FAVOUR. I WONDER IF THE GOVT ASKED HIM TO COMMENT, YET. BECAUSE WHILE HE’S EXCULPATING HIMSELF DIRECTLY/INDIRECTLY, WE KNOW THAT HE USED TO SIGN OFF DEALS WHICH WERE NOT WORTHY OF A GOOD RIP OFF WITHOUT KNOWING WITHOUT KNOWING THE AGREEMENT DETAILS. HE SAID IT HIMSELF.
If only we can find competent men and women to run Zambia Railways not cadres. I guess Zambia Railways can be profitable and the money that will be linjected in the company should be a loan and not a grant
We have done the right thing to take it back – not doubt about it. But what is the PLAN? HOW will govt improve the services of Zambia railways? Clearly using the current infrastructure, the railways will just be a drain on government resources. Unless government embarks on building a completely new railway line that will enhance speeds, tonnage and collaboration between SADC countries particularly RSA, ZIM, BOTS, ANGOLA, MALAWI and DRC.
I like Mr. Mangande for this: He is not a proud man who just opposes for the sake of it. But brother Nevers, like Mitt Rommeny, shoots first and aims later (to borrow from Barack Obama). I wonder if brother Nevers even knew that there was a technical a SADC technical report which clearly spelt out the failure of railway concessions.
senseable magande!
Magende is implying that zambia on its own cannot see if when something is failing until we wait for SADC REPORTS.
please Mr Mangande, why did not you act when you saw that it could not work?. Thats why I am liking Sata coz he acts when he sees a wrong thing being imposed on Zambians. Well done the PF for taking back our ZR but now we should plan well so that it is improved. Imagine a great sum of money that would be generated if the majority of Zambians in Lusaka and coppebelt were to use the rail transport. Wake up Zambians.
Thanks Magande. I still have a lot of respect for you big man. We need to revamp the railways. I see street vendors now selling tomato on the track. Just shows how traffic have reduced because they do not expect to see a training in a long time. And they can afford to clear off the line when a train is approaching because it is rediculously slow.
Mr. Magande, why didn’t act because you the finance minister and you saw that report? Now what can tell us, you just want a job in Poor Failures govt.
The problem with Zambian politicians when they speak you cannot tell wether they mean to save the people or saving their selfish interest. This guy probably just wants a job from PF. These political offices were people vote should be abolished and let people start applying, interviwed and employed including the president.
This was a World Bank and IMF prescription! I hope people will now open their eyes and not think that everything involving Wolrd Bank “experts” is perfect! I have see a lot of useless bloggers arguing/implying that becoz the World Bank was involved the RSZ deal of not defective
ba magande mwasekesha lol you want to talk now hahaha
Country men and women, i have always said that Southern province is not short of capable leaders who resonate very well with the whole country. You can judge for yourselves. Here is a Tonga, real Tonga, his accent, his laugh, everything in him is Tonga but look at what he has done for Zambia. These are the Tongas we neeed in politics. Tongas with a healthy track record. Tongas who have shown that Zambia is economically strong. Now you or let me put it properly, what is wrong with us Tongas? What has blinded us to see beyond HH and his violent and ever cheating followers? What is blinding us? is it the billions in HH’s account? We are still hoping we can dip our fingers into it? Come on Tongas, wake up and move. Magande is our best bet if a Tonga is gonna rule. HH is stingy, very stingy.
Magande should be playing an active role in national development. He is one of Zambia’s most progressive minds
Mr. P. N. Magande, it is good that you agree with this decision and that you had all the data to stop the abuse and misuse of this concession. MMD under Levy Mwanawasa, MHSRIEP, should have stood up for the people of Zambia by reversing these crooked deals like this concession for the benefit of the Zambians. Anyway, that is how ridiculous and ludicrous the MMDs’ blind implementation of world bank recommendations could go. Under RB AKA Rubbish Bin, finance bank was nearly forcibly sold to the boers who run Rand bank for ZmK27 billion. Today we are learning that between the time HEMCS returned the bank to Mahtani et al, just last year it has paid taxes of ZmK19.8 billion! Is this fair to all reasonable thinking Zambians?
#17 u are right bro.Magande is a very good and mature leader.I am bemba but i voted for Magande during the last election because i think he has the necessary competences and ability to develop our nation.I am not the type that doesn’t know what they want-if my car is down i go to a mechanic not a tailor,if am sick i look for a doctor not a witchdoctor.We need employment in Zambia and we have Magande who created real jobs at Kansanshi and Lumwana but we chose a policeman to create jobs!!!What we get is street vending and NATIONAL SERVICE FOR OUR KIDS.LETS BE SERIOUS ZAMBIANS.THE DONORS WHERE SHOCKED!!!
Please,can the PF government learn fron the egyptian government the way they are running their railway system,because in my view they are doing just fine.I am currently in Egypt experiencing the good work done by their Government on the railway sytem.I am talking about a fellow African Government
Mr Magande, why talk now when you should have advised the government about this long time ago.
b
Rail concession not favouring Zambia – Magande
Lusaka Times PUBLISHED Friday, April 11, 2008
Finance and National Planning Minister Ng’andu Magande has expressed dissatisfaction with the operations of the Rail Systems of Zambia (RSZ), the concessionaire operating the country’s rail network.
Mr. Magande, who is in Washington DC to attend the IMF/World Bank Spring Meetings which will convene on April 12 and 13th respectively, said there is need to revisit the current rail concession which he said was not favouring Zambians.
At a meeting with the Vice President of the African Region of the World Bank, Dr Obi Ezekwesili, Mr. Magande said the Zambian rail system had collapsed.
Magande questioned this agreement when he came in government in 2003. Sata is is just following.
Mr. Magande should emulate the behavior of other former Finance Ministers by allowing the new govt system play their parts. We condider Dr. Situmbeko Musokotwane to have been a very sharp and fine Finance Minister, especiall taking into account that the RB regime accumulated massive foreign reserves that held Zambia in high esteem. Magande must pick a leaf from fromer South African Finance Minister. Wisdom is best nurtured through silence; but his recent outbursts reveals that he has an axe to grind against RB. Yet the MMD NEC allowed him to contest for the party’s Presidency, but democracy prevailed in favour of RB then. We wonder whether he has any cridible ideology, particularly that he seems to swim away from MMD towards a shaky and sinking PF boat.
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