jeudi 20 mars 2008

Tanzania to channel $698m into infrastructure

Andrew Maggs, Business Day, 03 March 2008

WHILE Kenya’s ongoing political crisis continues to dominate East Africa’s headlines, it is business as usual in the neighbouring countries, where prospects for participation in infrastructure projects have improved significantly over the past few months

In Tanzania, the signing of a compact (foreign assistance agreement) between the Millennium Challenge Corporation (MCC) of the US and the government of Tanzania will see $698m being channeled into infrastructure investments in the transport, energy, and water sectors over the next five years. Given the MCC’s intention to accelerate implementation of its activities, contractors and consultants would do well to monitor these developments without delay as various projects are rolled out.

MCC assistance will be used to rehabilitate roads, increase the availability of potable water and improve access to reliable energy. Already procurement is under way, with consultants being sought to provide engineering services, works supervision services and technical assistance for the proposed MCC-funded Energy Sector Project. This includes the construction of an 8MW run-of-river hydro power plant at Malagarasi and the installation of a transmission and distribution network in the Kigoma region.

Rehabilitation of power distribution systems and network extension in six regions (Tanga, Morogoro, Mwanza, Mbeya, Iringa, and Dodoma) will be carried out.

Once bidding documents have been prepared, contractors will be invited to participate in the Malagarasi hydro project on a EPC-basis (Engineering, Procurement and Construction).

Further investment is expected later this year when the World Bank decides whether to provide funding of $130m towards the Central Transport Corridor Repeater Project. With a total value of $170m, the project will include the establishment of a Bus Rapid Transport (BRT) system in Dar es Salaam .

The BRT, which will operate as a “surface metro system” will cover a distance of 20,9km. Dedicated bus ways will be constructed and stations will be built at 1km intervals. The system will also have five terminals, six feeder stations and two bus depots.

Also included as a component of the Central Transport Corridor Repeater Project is the rehabilitation and upgrading of the Korogwe-Mkumbara-Same road (172km), which forms part of the North-East Corridor that connects Dar es Salaam to major tourist destinations in northern Tanzania. It also serves as an important link between Dar es Salaam and Nairobi. In Uganda plans are under way to introduce a BRT system in Kampala to improve public transport. The project, if it goes ahead, would likely be implemented by the private sector under public-private partnership.

Uganda’s ministry of transport has announced plans to upgrade the Entebbe-Kampala road into an expressway. The existing road (39,7km) handles 17000 vehicles a day and is visibly inadequate to handle increased traffic flows between Entebbe International Airport and Kampala.

Again, private sector participation would be sought with the likely option being a Build, Operate and Transfer scheme with investment costs being covered through toll collections. Terms of reference for both projects (BRT and the Entebbe-Kampala Expressway) are being finalised, with bidding for consultancy services likely to commence next month.