The Minister of Public Works and Transport, Professor Makame Mbarawa, made the claim when tabling in the National Assembly yesterday the ministry’s budget estimates for 2022/23, set at $3.87 billion, a strategy to engineering, procurement, construction and financing allowing the government to sign PPP agreements for the construction of roads. at county, regional and national levels.
Of the total estimates of 3.87 trn/-, 1.47 trn/- will be allocated for financing works projects and 2.40 trn/- for financing the transport sector, he said, noting that the new initiative will make it easier for the department to achieve the goals it sets for each fiscal year.
“During the 2022/23 financial year, the government will work with the private sector in the execution of road projects to bring more efficiency and accomplish the projects on time,” he told MPs.
Independent execution of road projects leads to mismatch of targets, he said, pointing out that in the outgoing financial year, TanRoads aimed to build 467 kilometers of paved roads, but at the by the end of April, he had managed to build only 216 kilometers.
TanRoads also planned to build 14 major bridges but managed to complete four, while regionally, TanRoads planned to build 103 kilometers of paved roads, but by the end of April only 34.8 kilometers had been built.
“The ministry was supposed to receive 38.54 billion/- to finance the construction works and had received 31.58 billion/- at the end of April, while 1.88 billion/- was planned for transport and 1.53 billion/- received during the period,” he said. .
The Tanzanian Road Fund does not have the capacity to finance road projects as of the end of April, the fund’s capacity to finance road projects stood at 42% of initial projections, he said, clarifying this during of the next exercise. TanRoads intends to construct 470 kilometers of the main road network at tarred level and maintain 33 kilometers. Ten major bridges will be built, he said.
The Ministry was seeking to amend the Road Fund Act in part to identify and highlight all taxes related to gas and other energy sources like diesel and petrol to contribute as sources of revenue so that the fund is effective.
The ministry has allocated $615.9 billion for regional asphalt roads as well as the construction and maintenance of bridges in 26 regions of mainland Tanzania, he said.
Funding for strategic projects is complemented by 1.26 billion/- allocated for the Standard Gauge Railway (SGR) and 9.19 billion/- for the maintenance of the central railway line from Dar es Salaam to Isaka, covering 970 kilometers.
The Tanzania Civil Aviation Authority (TCAA) is expected to get 43 billion/- for improving the quality of air services, the Tanzania Metrological Agency (TMA) getting 20 billion/- for metrological services, the Tanzania Ports Authority (TPA) has allocated 100.11 billion/- will come from the World Bank and an additional 650 billion from local sources.
The Tanzania Shipping Agencies Corporation (TASAC) received 4.16 billion/- from the African Development Bank (AfDB) and 92.58 billion/- from its own sources of income, with the minister saying that the low participation of contractors local to strategic projects stems from minimal working capital, resulting in non-compliance with tender requirements.
Commercial bank regulations for lending to local construction companies were also not favorable compared to lending from other sectors, he said.
Another challenge was the lack of experts and poor infrastructure in the aviation, railway and metrology sectors, where among the 58 airports managed by the Tanzania Airports Authority (TAA), only four have flight control lights.
This is forcing airlines to rely heavily on same-day trips, but in the 2022/23 financial year, the ministry plans to use £86.10 billion for airport renovations.
The Tanzania Railway Corporation (TRC) in the outgoing fiscal year carried 337,617 tonnes of freight compared to 257,747 tonnes in 2020/21, an increase of 30.1%, the increase being attributed to infrastructure development and the purchase of 240 freight wagons.
From July 2021 to April 2022, TRC served 345,246 passengers who made long trips, compared to 391,612 passengers in the comparable period of the previous year, after trips were reduced from four to two per week for Dar es Salaam terminals in Mwanza and Kigoma.
On the other hand, the Tanzania Zambia Railway Authority (TAZARA) transported 180,597 tons of freight against 173,490 tons during the same period for 2020/21, an increase of 4%, following the maintenance of seven engines which improved efficiency, he added.