TZ RAILWAYS RESTRUCTURI

closed

The main objectives of the project are to: (a) strengthen the organization of the Tanzania Railways Corporation (TRC), eliminate regulatory bottlenecks to its effective operations and set it on a path of a commercially viable entity; and (b) rehabilitate infrastructural assets, replace obsolete and uneconomic operational assets and provide limited new investments consistent with the prospects for growth in traffic. The project will support a comprehensive restructuring program for TRC comprising: (a) reform of the regulatory framework governing the conduct of its business; (b) revamping of its organization to strengthen its capacity to manage its core railways activity; (c) restructuring of its operating procedures and systems to make operations more efficient; and (d) rebuilding of its capacity through reducing the huge backlog of deferred maintenance on its assets. The project consists of: (a) the rehabilitation of track, telecommunications systems, locomotives, wagons and coaches; (b) the replacement of obsolete and life-expired maintenance equipment, vehicles and coaches; (c) organizational support and training to strengthen management system and staff capacity in all functional areas; and (d) support for improvements in the working environment and incentives, including enhanced pensions, for the workforce.