Mr Omar Nundu, Tanzania's minister for transport, says that the money will be used to invest in new locomotives and to refurbish at least nine others in order to revive the dwindling performance of the railway. Tazara will also purchase 90 freight wagons, the minister said.
Tazara has suffered recently from strikes and deteriorating service and has been searching for additional funds to enable it to acquire raw materials to refurbish tracks and acquire spare parts to repair 1200 freight wagons.
China has reportedly agreed to waive 50% of the outstanding portion of the $US 500m original loan to build the line in the 1970s.