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Tanzania - Railways Restructuring Project (Inglês)

Mixed results are conveyed by this project assessment, given its outcome is rated unsatisfactory, with an unlikely sustainability, yet institutional development impacts are substantial, and both performances by the Bank, and Borrower are rated satisfactory. Lessons confirm in fact, that the project succeeded much better than many similar railway projects, with a rising freight traffic over the network of over seventy five percent, having the Tanzania Railways Corporation (TRC) achieved a much more commercial approach. However, unless the basic incentive/sanction structures are changed, technical assistance (TA) and training will have little sustainable impact, unless the institutional culture is substantially modified. Despite substantial emphasis given to capacity building, institutional strength will not necessarily be reflected in corporate performance, unless a strong management orchestrates the entity. Likewise, the corporate culture will change from within its continual institutional framework, provided a new framework allows full private management practices, as demonstrated by the success of the Dar es Salaam Container Terminal stemming from the time of its leasing to the private sector. Moreover, while work unit targets were reached, with incentive payments reaching an almost forty percent of the basic salary cost, no improvement in corporate performance was observed. The TRC incentive scheme needs to be carefully designed, so as to be linked with corporate performance. Further lessons demonstrate the importance of adequate operation line management, which showed a rapid improvement during the interim capacity enhancement program (ICEP) following the concessioning decision aimed at increasing locomotive availability, a proof of how the impact of experienced, and motivated management can orchestrate the potential capacity of an organization, and deploy it into the corporate operational performance; and, the limited private sector interest may be an understandable risk aversion, but more interest may be generated through a flexible criteria, that allows other interests to bid for the concession.


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    Tanzania - Railways Restructuring Project

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    freight traffic;quality at entry;railway restructuring;operational performance;return on asset;institutional development impact;locomotive maintenance;Regulation and Competition Policy;rural services and infrastructure;base level of traffic;Economic Rate of Retum;Financial Management and Accounting;corporate performance;private sector management;principal performance ratings;institutional capacity building;borrower performance;danish international development;public awareness campaign;delay in procurement;provision of equipment;outputs by components;road transport costs;consultations with stakeholders;infrastructure and services;private sector demand;development credit agreement;constraints to development;freight transport performance;paradigm shift;substantial equity participation;country assistance strategy;social and environmental;Country Assistance Strategies;procurement of equipment;quality assurance group;ratings of bank;financial accounting system;rate of change;donor support;transaction process;managerial autonomy;incentive scheme;railway operation;infrastructure asset;commercially viable;management autonomy;passenger traffic;donor funding;operational capacity;institutional transformation;track maintenance;institutional framework;locomotive availability;relief equipment;high performance;behavioral change;effective capacity;budget allocation;materials management;railway system;transit traffic;operational asset;donor assistance;incentive system;salary cost;incentive payment;residual value;Management Systems;performance contract;risk aversion;improved service;financial return;international management;flexible criteria;long-term management;rail operator;effective operations;organizational development;potential bidder;government interference;road system;impact indicator;flood period;commercial service;standing passenger;passenger transportation;procurement procedure;economic investment;donor investment;replacement cost;long-term investment;average result;loan period;freight capacity;rail network;evaluation period;fixed infrastructure;rail work;civil works;domestic traffic;borrower's performance;financial provisions;rail sector;financial problem;financial sustainability;evaluation system;cabinet approval;railway sector;parastatal enterprise;general management;institutional culture;asset valuation;contract management;sustainability rating;corporate culture;private management;political problem;financial impact;supervisory staff;management committee;political development;landlocked country;insufficient traffic;management development;government control;shunting locomotive;traffic right;operational management;pension liabilities;concession transaction;primary author;emergency works;economic recovery;bridge construction;track rehabilitation;asset revaluation;account data;commercial management;resettlement policy;investment component;project costing;bank restructuring;tracking system;parastatal sector;legal basis;concession bidding;degree of performance;organizational support;formal system;handling equipment;operational improvement;asset evaluation;organizational structure;parastatal reform;tariff setting;communication structure;train operation;railway track;staff rationalization;physical asset;rolling stock;unproductive asset;telecommunications system;passenger coach;mechanical engineering;tariff increase;commercial orientation;asset base;railway performance;traffic growth;improving productivity;employee incentive;wage structure;operational objectives;donor agencies;operational target;debt service;management culture;market environment;business principle;rail infrastructure;road investment;fuel levy;road maintenance;cultural change;Exchange Rates;audit review;internal reporting;construction equipment;management leadership;emergency procedure;concession process;transition arrangement;regulatory constraint;regular operations;transitional arrangement;railway reform;



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