Tanzania: TAZARA gets 52bn/- bailout

Written by LEONARD MWAKALEBELA in Dodoma

Thursday, 02 July 2009 08:31

THE Chinese government will this financial year inject $39.3m (over 40bn/-) to recapitalize the Tanzania Zambia Railway Authority (TAZARA). Presenting his ministry’s 2009/10 budget estimates, the Minister for Infrastructure Development, Dr Shukuru Kawambwa, said that China would also give technical support to TAZARA.

He said that governments of Tanzania and Zambia were in discussions with various other international financial institutions to recapitalize the authority. The minister also said that a US-based firm, Joint International Business Group LLC, had since expressed interest in entering into joint venture with Dar es Salaam Transport Corporation (UDA).

He said that once discussions between the US company and UDA Board of Directors were concluded, the firm would give UDA 200 buses and technical assistance. “Our objective is to rescue UDA and make it a key partner in implementing the Dar es Salaam Rapid Transport project in 2010, Dr Kawambwa told the National Assembly.

On decongestion of the Dar es Salaam port, the minister said that in 2009/10 Tanzania Port Authority would build a 10-storey building as yard for cars offloaded from ships. He said that the current yard used for such purposes would used to reserve containers. Dr Kawambwa said that other two container terminals would be built in 13 and 14 berths.

The minister said that the government was keenly following up performance of Tanzania International Container Terminal Services (TICTS) and would soon make decision. According to Chairperson of Parliament Mrs Jenista Mhagama, the government is today going to present performance reports of TICTS and Tanzania Railway Limited (TRL).

Dr Kawambwa said that construction of the Kigamboni bridge would begin during the 2009/10 financial year, and that six bidders had since expressed interest to go into joint ventures with the National Social Security Fund to build the bridge. “Process of picking up one investor has started and will be completed by March 2010”, he said.

According to Dr Kawambwa, all regional headquarters except four had been connected with tarmac roads. The exceptional regions are Rukwa, Tabora, Kigoma and Manyara. He also said that collections for the Road Fund had increased from 73bn/- in 2005/06 to 218.4bn/- in 2008/09.

The minister however said that the government had formed a task force in collaboration with Tanzania Revenue Authority to plug loopholes in collections through Road Fund. Dr Kawambwa noted that 17 road projects which started during third phase government, 11 had been completed and 6 were at different stages of implementation.

The minister presented budget estimates of over 841bn/- in which over 570bn/- would be spent as development expenditure and over 270bn/- would be used as recurrent expenditure. Contributing to the estimates, most MPs from Tabora and Kigoma attacked the government for abandoning the Western circuit since independence.

Said Nkumba (Sikonge-CCM) said that some funds for road projects allocated for the circuit were diverted to other parts of the country, contrary to the approval of Parliament. “There’s no use behaving like saints here … we can no longer tolerate this habit anymore. It’s now our time to have good roads,” Nkumba charged.

Other MPs blamed the government for failing to pay Tazara retirees their retirement benefits -- and for failing to compensate Kipawa residents who were evicted to pave way for the expansion of Mwalimu Nyerere International Airport.

Daily News

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