How will SGR cut cost of living

From DEOGRATIUS KAMAGI in SHINYANGA

TANZANIA’s strategic Standard Gauge Railway (SGR) project continues to be implemented at a good pace with the construction of all lots under phase one in various stages of implementation.

The project that is worth 23.3tri/- is implemented in five lots which cover a distance of 1,596 kilometres from the commercial city of Dar es Salaam to Mwanza region, whereas a total of 7.4tri/- has already been paid to contractors based on the work that has been done.

Moreover, the government has already procured 10 train sets totaling 80 electric multiple units and 19 electric locomotives will arrive in the country in June this year.

The equipment worth 557.731 million US dollars, which is equivalent to 1.29tri/-, are purely for the use of the SGR line.

This was said by the Managing Director of Tanzania Railway Corporation (TRC) Masanja Kadogosa on Wednesday at Isaka area, Kahama District in Shinyanga Region, shortly after Vice- President Dr Philip Mpango laid a foundation stone for construction of SGR line from Tabora to Isaka.

The Tabora-Isaka SGR line covers 165 km, and it will be constructed by the Yapi Markezi of Turkiye at the cost of 2.6tri/.

According to Eng Kadogosa, TRC in collaboration with Tanzania Electricity Supply Company (Tanesco) have completed the construction of 220kv power transmission line from Dar es Salaam- Morogoro.

“Power connection for the Morogoro- Makutupora line is at 97 per cent, while plans for electrifying the Mwanza-Isaka lot are at the procurement procedures as Tanesco is currently looking for contractors,” he said.

Eng Kadogosa revealed that the delay for implementation of SGR lot four is a result of failure to get a contractor after the first announcement of tender in 2016.

“In 2016, we announced a tender for construction of this lot, but we couldn’t get a contractor,  the tender was re-announced in 2017, where the lowest bidder tendered a cost of 1.4billion US dollars which  is  too expensive.”

“So here we decided not to use the open tender system. As a result, we managed to get this contractor at a cost of 900 million US dollars, which is equivalent to 2.6tri/- tax inclusive,” he said.

The TRC boss said the government has set a standard for which all the SGR lots from Dar es Salaam, Mwanza and Kigoma will have uniform features.

He informed the Vice-President that TRC has also signed fixed contracts with contractors implementing the project; this, he said, provides no room for price adjustment even if there will be changes in the cost of materials.

This, according to him, serves as a way to ensure value for money throughout the construction period.

According to the Minister for Works and Transport Prof Makame Mbarawa, investments being made under his dockets are part of the government’s efforts to improve the economy through stimulation of various sectors of production.

The minister said, currently it takes up to 30 days for cargoes cleared at the Port of Dar es Salaam to arrive in the Democratic Republic of Congo (DRC), but completion of the SGR will shorten the delivery time up to 36 hours.

“The rail will also help in cutting the cost of living as goods and various manufactured products will be easily transported to the consumers,” he said.

After completion of the first phase that will connect Dar es Salaam and Mwanza, the government will continue with phase two from Tabora to Kigoma at a distance of 506 km.

The minister reiterated the commitment of the sixth phase administration under President Samia Suluhu Hassan, to open up the country through infrastructural projects.

“When she assumed the role in March 2021, the country was implementing two lots that cover 722 km from Dar es Salaam to Makutupora,”

“But in less than two years, President Samia has managed to put into implementation three more lots to Mwanza as well as signing the Tabora–Kigoma section. This is a milestone achievement,” said the minister.

As of December, last year, the execution of lot one of the SGR project between Dar es Salaam and Morogoro was complete by 97.7 per cent, followed by the lot two from Morogoro – Makutopora whose completion was at 91.7 per cent.

Moreover, the third lot from Makutupora- Tabora was at 3.9 per cent, while lot five of the Isaka-Mwanza section was at 22.7 per cent towards completion.

Lot four that connects Tabora and Isaka is currently at mobilisation and technical investigation stage.

Laying a foundation stone from the Tabora- Isaka lot, Dr Mpango said the government is well committed to invest heavily in the works and transport sector as part of efforts to improve the economy at national and individual level.

“The infrastructural project helps the country in attracting investors as well as creating a competitive environment for business as a result of economic growth,” he said, instructing the Ministry of Works and Transport together with TRC to ensure the project is implemented at the best standard.

“We at the government won’t sleep until this project is completed by March 2026, as indicated in the contracts,” he vowed.

The VP instructed the contractor to ensure residents of Shinyanga, Tabora and neighbouring regions are well involved in the projects through employment that have been created from the project.

The Vice-President asked the contractor to ensure all their workers are paid on time with no delays.

Dr Mpango also used the occasion to warn the dishonest employees and others who are stealing various resources and materials from the project, saying the government will ensure all are arrested and face legal actions.

“It is disappointing to see some people are stealing the materials be it fuel, cement, steels and other building materials, these people have to be arrested by our security organs and face the law accordingly,” he said, noting that there are some members of the police force who are also part of the cartel.

“And, for members of the police force who are stealing these resources have to be identified and face legal actions as per their guiding principles of the police force,” he noted.