Tanzania has signed
an agreement to link its Standard Gauge Railway (SGR) to Burundi and
the Democratic Republic of Congo, in a deal that gives Dar es Salaam's
multi-billion-dollar project a major shot in the arm.
Transport ministers
of the three countries Isack Kamwelwe (Tanzania), Jean Bosco (Burundi)
and Roger Biasu (DRC) signed the agreement this past week in the port
town of Kigoma.
The SGR link gives
landlocked Burundi and DRC direct access to the Dar es Salaam Port,
greatly boosting Tanzania's Central Transport Corridor.
The development is,
however, a blow to Kenya's Northern Transport Corridor, which had
marketed its own SGR as the cheaper and more efficient route for East
Africa's landlocked countries including Burundi and eastern DRC.
"This agreement is
in line with the completion of a preliminary feasibility study of detail
design plans which was successfully done by the consultancy company
Gulf Engineering Ltd based in Uvinza," Mr Kamwelwe told The EastAfrican.
The first phase of
the construction will start from Uvinza district in Kigoma region in
north western Tanzania to Gitega, via Msongati region, in Burundi,
covering a stretch of 240km. The railway will then be extended to the
eastern regions of DRC according to the agreement.
Tenders for the project will be floated next year, according to the ministers.
The total cost of the project is yet to be established but each country will have to finance its own portion, Mr Kamwelwe said.
"The two countries
have expressed their optimism and commitment in supporting the SGR
project as both depend largely on Dar es Salaam Port for exports and
imports," Mr Kamwelwe added.
The faster moving
SGR trains offer an opportunity to reduce the time and high transport
costs that the landlocked countries currently have to bear.
Tanzania's SGR line will, on completion, stretch for 1,457 km from Dar es Salaam to the shores of Lake Victoria.
It is among the
ongoing mega infrastructure projects in the country, and is estimated to
cost Tsh14 trillion ($ 6.5 billion) over the next five years.
About a year ago,
Tanzania signed an agreement with Rwanda for an extension of the SGR
line from Isaka (Tanzania) to Kigali (Rwanda), covering 575km.
A detailed design for the extended line has already been drawn.
Both countries are
going to finance the project at a total cost of $2.5 billion, of which
Tanzania will pay $1.3 billion and Rwanda $1.2 billion. Rwanda will
incur another expense to cover the extended line to Rubavu, covering a
stretch of 221km.
DRC's President
Felix Tshisekedi during his state visit to Dar es Salaam four months ago
said that the extension of the SGR line to Rubavu from Kigali would
open trade opportunities for the landlocked DRC which depends largely on
the ports of Dar es Salaam and Mombasa to access the sea.
According to Mr
Kamwelwe, the detailed design along Uvinza-Gitega line is complete.
Burundi is looking for funding to complete a detailed design plan for
the remaining portion from Gitega to eastern DRC.
Tanzania is also
yet to get full funding for its own SGR line, although it is eyeing
Chinese support which two months ago declared its intention to finance
the project.
Dar es Salaam is
currently funding its own SGR, straining its annual budget as it takes
away funding intended for other projects.
Another potential
financier, 'Trade and Development Bank for Eastern and Southern
African,' two weeks ago expressed its intention to give a soft loan to
the Tanzanian government to help fund the project.
The Bank's
President, Dr Admassu Tadesse, made his pledge to co-operate with
Tanzania to facilitate funding of mega economic projects currently going
on across the country.
The Minister for Finance and Planning Dr Phillip Mpango met with the bank's president in Dodoma.
Tanzania will become the third country in East Africa to start enjoying modern railway services after Kenya and Ethiopia.
Kenya, was the
first in the region to start constructing an SGR line, completing over
500km between Mombasa and Nairobi, and also inaugurating its passenger
services in June 2017.
Phase two of the
project has also stretched to Mai Mahiu but stalled due to lack of
funding amid queries over its economic viability.
The Kenyan SGR,
which has cost nearly $4.9 billion, was planned to go all the way to the
Ugandan border and later extend to Kampala and Kigali.
The fate of the subsequent phases from Naivasha to Kisumu and then to Malaba at the Ugandan border hangs in the balance.
If executed, the
Tanzanian to DR Congo SGR could raise even more doubts on the viability
of the Kenyan line given that the two are competing for the same cargo.
China has asked
Kenya and Uganda to work on their respective financing modalities for
the joint railway in order to receive funding for the project, Uganda's
Finance Minister Matia Kasaija was recently quoted as saying.
The Chinese funded
the initial two phases of the Kenyan SGR, but declined to bankroll
subsequent phases citing public debt default risk.
The Mombasa to
Nairobi SGR has failed to attract anticipated cargo volumes, which has
seen the government force all importers to transport inland-bound goods
on the new line.
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