45% of GDP in 2017/2018 to be spent on Infrastructure

Good news for the members of Into SA’s eAFRICA Platform: President mMgafuli holds what he promised: The government of Tanzania is planning to spend almost 45 per cent of its 2017/2018 fiscal year budget as development expenditure in infrastructure, according to the Ministry of Works, Transport and Communication who unveiled $4.5trillion budget, which among other things, will cover flagship infrastructure development.

Out of the amount, the transport sector will take a huge chunk, totalling Tshs 2.5trillion, while Tshs1.9trilion is for works sector and the remaining Tshs18billion is reserved for communication sector.

Among areas of priority, is Tshs 900billion for the construction of Standard Gauge Railway (SGR) from Morogoro to Dodoma. In the current financial year, the government has allocated Tshs 1trilllion to cover the Dar es Salaam -Morogoro patch, in which President John Magufuli, has already laid a foundation stone and the project, is ongoing.

Prof Makame Mbarawa further said that during the next financial year, the government has set aside Tshs 200bilion for rehabilitation of Dar es Salaam-Isaka central railway, which will include bridges and culverts and to rehabilitate railway lines within Dar es Salaam Port.

He said the projects will be supported by the World Bank. Another project highlights in transport sector to be covered during the 2017/2018 fiscal year is Tshs 187billion for the modernization and expansion of the Dar es Salaam Port and a sum of Tshs 87billion for the construction of a Multi-Purpose Terminal at Mtwara Port.

He said Tshs 500billion has been allocated for the continued revival of the national carrier – Air Tanzania Company Limited (ATCL). During the next fiscal year, Prof Mbarawa said, the amount will be used for the acquisition of three new aircrafts, which include two CS 300 with the capacity to carry 127 passengers each and one long haul Boeing 787-8 Dreamliner, with the capacity to carry 262 passengers.

“The funds will also be spent on providing insurance cover, training of pilots, engineers, cabin crew, start up costs as well as down payment for another Boeing 787 (Dreamliner),” he told the House, insisting that the government was committed to see ATCL fully back into the air and operating profitably.

Other areas include: Tshs 35billion set aside for the construction of Terminal Three at the Julius Nyerere International Airport (JNIA), Tshs 32.5billion for rehabilitation and upgrading of Kilimanjaro International Airport (KIA), in which Tshs 5billion is from internal source and the remaining Tshs 27.5billion from the Netherlands Development Fund (ORIO). The ongoing project is being carried out by Netherlands-based construction company BAM International.

The government has also allocated Tshs 23.5billion for the improvement of Mwanza Airport. He said the funds will cover initial work for the construction of a new passengers’ terminal, extension of runway and cargo terminal, while another Tshs 5.5billion will enable undertaking of feasibility study for the construction of Msalato Airport in the designated capital of Dodoma and Tshs 1.1billion for upgrading and rehabilitation of Dodoma Airport. Most of the funding for these projects comes from the government’s own sources.

In works sector, the Minister said, priorities will be on improving the road networks countrywide, in which Tshs 12.8billion has been allocated for compensation to people, who will be affected by Dar es Salaam-Chalinze -Morogoro Expressway project (DSM-Chalinze Section – 144 kilometres).

The project which will later stretch up to Morogoro, covering another 200 kilometres will be undertaken through Public Private Partnership (PPP). The list also includes backlog rehabilitation of Mlandizi-Chalinze road which will cost Tshs 2.1billion. Another highlight is Tshs 25.9billion set aside for final payment of contractors and consultant engineer, who carried out Tshs 64km Wazo Hill-Bagamoyo-Msata road project including lower Ruvu Bridge.

The amount will also cover initial preparations for the construction of Bagamoyo-Saadan-Tanga (178km) including Pangani and Lower Wami bridges. Minister Mbarawa further said that his ministry has set aside Tshs 5.9billion in the next financial year, to procure a ferry to ply between Kogongo-Busisi, Tshs 333million to procure another ferry (170 tones) to ply between Magogoni and Kigamboni, Tshs 300million to carry out expansion of Kigamboni ferry terminal side. On rehabilitation of ferries, the Minister said, Tshs 600million will be spent on rehabilitating MV Kigamboni, Tshs 610million to rehabilitate MV Misungwi and Tshs 500million for rehabilitation of MV Sengerema.

If you need assistance with or information on the procurement processes in Tanzania, please contact “eAFRICA@into-sa.com(Request Assistance from eAFRICA Platform)”:https://www.into-sa.com/documents/eafrica–2.

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