Ministry to present Botswana Railways restructuring

source: BOPA
04 March, 2008

PARLIAMENT – The Ministry of Works and Transport will submit a proposal to cabinet for the recapitalisation and financial restructuring of the Botswana Railways (BR).

Minister Lesego Motsumi told Parliament during her ministrys budget request for the approval of P2.4 billion, that is, P1 467 788 410 for the recurrent budget and P988 980 000 for the development budget for the financial year 2008/2009.

The proposal recommends among others that the railway infrastructure be financed by government in future through equity contribution to BR and maintained by BR awarding long term maintenance contracts financed from user charges, she said.

She said the user charges are to be built gradually from the equivalent of one third of the required annual cost of infrastructure maintenance in 2008/2009 to 100 percent by 2012/2013.

Ms Motsumi noted that the operating results for the quarter ended 30th September 2007 showed that the BR was still making operating losses.

This, she said, was because the implementation of [continue reading]

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