By Guardian Reporter , The Guardian
WORKS minister, Innocent Bashungwa yesterday outlined eight priorities for the ministry in the next financial year, focused on repairing roads and bridges damaged by El Nino floods and ravages of the tropical cyclone, ‘Hidaya.’
Tabling budget estimates for fiscal 2024/2025, he asked the National Assembly to endorse 1.7trn/-where 81.4bn/- is slated for recurrent expenditure and 1.68trn/- meant for development projects.
Salaries take up 76.58bn/- and 4.8bn/- slated for other needs.
Upwards of 599.7bn/- in the projected estimates is expected to be collected as Roads Fund revenues, and 542.04bn/- expected to be allocated from the Consolidated Fund, he said, noting that ongoing projects like the construction of strategic roads that open up economic opportunities will be pursued.
These road links facilitate the growth of tourism, agriculture, mining, ports, industries, while roads remain to be completed around the Julius Nyerere Hydropower Project (JNHPP), he stated.
Efforts to reduce congestion in cities, namely Dar es Salaam, Arusha, Tanga, Mwanza, Mbeya and Dodoma, he said, with priority being directed to the construction of roads connecting regional centers and neighbouring countries.
Feasibility studies for new roads in urban areas will be taking into account the needs of special road users like cyclists and pedestrians, he said, telling MPs that a total of 13 airports are expected to be completed.
Building weighing scales, bypass roads will be taken up as part of roads and bridges maintenance, he stated, affirming that local contractors will be sought out for the road revamping work, raising most roads to all weather status to maintain the pace of economic activities in all seasons of the year.
The Engineering Consulting Unit (TECU) within the Tanzania National Roads Agency (Tanroads) will he enhanced so as to manage large construction works, he said, highlighting that the government will be conducting a review of the national construction sector policy of 2003) and the national road safety policy approved in 2009 to take note of changes in technology and climate change risks.
Local experts’ capacity will be boosted through various programmes so that they can manage large projects, within a wider effort to strengthen the use of information and communication technologies (ICT) systems, he further noted.
Using low-cost technologies in road construction especially in all-weather road uplifting is envisaged, along with strengthening operations of the Tanzania Electrical, Mechanical and Electronics Services Agency (TEMESA) as part of its transformation strategy for 2024 – 2034).
The private sector will have a lot to do in construction projects as Tanzania’s economy grows, with the need for stable and modern infrastructure, he said, pointing out that due to vast funds needed the government was making major improvements to the law on public0private partnership (PPP) to attract investment and increasing efficiency in the implementation of infrastructure projects.
Alterations in the law include enabling alternative dispute resolution mechanisms like mediation or arbitration, as well as international courts hearing such matters instead of limiting them to arbitration by local courts, he said.
PPP projects will be implemented through companies set up to manage the relevant project as a special purpose vehicle especially for the construction of roads and airports, as the government alone will not be able to implement all these projects on time due to limited budgetary funds, the minister declared.
Along with roads, bridges and airports, the ministry manages construction and renovation projects for government houses and buildings, ferries and vehicle maintenance garages, he stated, noting that even in these areas, implementation is still low compared to investment opportunities available
Reduce the government's high costs for project implementation and reducing the time spent in implementing the projects, there is a need to involve the private sector through PPP, he emphasised, stressing that the law provides that public sector stock in the company should not exceed 25 percent.
The minister in charge of PPP will be empowered to allow solicited projects with specified characteristics that need not be passed through the competition process under equally specified conditions, he said.
The goal is to speed up the implementation of those projects by negotiating directly with the private sector, improvements that will help ensure that the investment environment becomes friendlier, more transparent and more efficient for local and international investors, he further asserted.
Local content provisions for large construction projects are being designed such that the sector contributes significantly to the gross domestic product (GDP).
National Bureau of Statistics (NBS) data shows that the average GDP contribution of the sector from 2012 to 2022 stood at 14 percent, growing at an average of 12 percent per year, he said, pointing at information of large construction projects from 2013 to 2023 as indicating limited participation of indigenous contractors.
The Contractors Registration Board (CRB), responsible for registering projects implemented by contractors, indicates that out of 36,839 projects, local firms implemented 35,351 projects, the vast majority, but only valued at 23.749trn/-.
That is equivalent to 38.5 percent of the total value, pegged at 61.638trn/-, such that foreign contractors, with 4.1 percent of the projects, absorbed 61.5 per cent of total value, he added.
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