ZAMBIA RAILWAYS RESTRUCTURING PROJECT

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The Railways Restructuring Project will enable substantial restructuring of Zambia Railways, to increase its operating efficiency, reduce operational costs, and configure its freight services, and tariffs. The components include: 1) railway concessioning, being facilitated by the completion of asset valuation and audit studies. Advisory services will be financed to meet the requirements of the privatization agency to design, negotiate, and implement concession agreements, and, legal assistance will be provided for contract interpretation and dispute resolution, in addition to consultant services and technical assistance (TA) provision; 2) staff retrenchment will be compensated through severance payments, and an additional fifteen percent contingency will be provided to cope with any variations. Pension obligations and liabilities will be funded by the Pension Fund, assured by Zambian Railways Ltd. (ZRL); 3) asset rehabilitation, through the financing of locomotives, and equipment, strengthening of tracks, and procurement of wagon wheels; 4) TA, and consulting services to restructure ZRL, to possibly operate as a downsized state-owned company, but responsible for spinning-off remaining commercial, and non-commercial activities; 5) TA to assess the regulatory framework, and recommend sectoral coverage, and accountability relationships for the regulatory institutions, in addition to TA services in setting an Escrow Fund, to cover retrenchment benefits, operating expenditures, and debt obligations; 6) TA to strengthen the Ministry of Communications and Transport; and, 7) environmental and social mitigation, based on recommendations of the environmental, and social assessments, respectively.

FY17 - Public Administration,FY17 - Social Protection,FY17 - Transportation

World Bank Group

Project

Mass Transit, Rail, Commercial, Government