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Kahama road project to bring major transformations

The road is expected to transform social and economic activities  PHOTO | COURTESY

What you need to know:

  • The project is implemented following the disbursement of $40 million, which is nearly Sh100 billion, by the Barrick mining company.

Bulyanhulu. The implementation of a 73-kilometre road project from Kahama to Bulyanhulu in the Shinyanga region is expected to bring major transformations in the areas’ social and economic activities.

The project is implemented following the disbursement of $40 million, which is nearly Sh100 billion, by the Barrick mining company.

The company that operates the North Mara, Bulyanhulu, and Buzwagi mines is a joint venture between Barrick Gold and the government, which together formed Twiga Minerals Corporation.

The joint company is obliged to oversee the smooth operation of the mining activities in the areas of operation for the investor and citizens at large.

In the agreement, the government holds 16 percent, while the investor is left with the remaining 84 percent shareholding of the economic benefits.

The provision of $40 million for the project was part of the agreement between the sides; however, the amount was dished out in the form of corporate Social Responsibility (CSR).

Speaking to The Citizen, Msalala Constituency Member of Parliament (MP) Iddi Kassim said the road was expected to be a shortcut for citizens in Geita when travelling to the country’s business capital of Dar es Salaam as compared to the current road passing Shinyanga town.

“The road is expected to transform social and economic activities by easing transportation in the mineral sector, which is a major economic activity taking place in the area,” he said.

“Different opportunities are expected to open up, including increasing the number of players and stakeholders participating in the agricultural sector. The area is famous for lentil, rice, and cotton farming,” he added.

The lawmaker said the project was also expected to increase investment in the area, hinting that all the surveyed plots in the existing project have been taken by investors for the construction of different economic facilities such as petrol stations, hotels, etc.

“Apart from reducing transportation chaos and catalysing the economic activities in the area, the road will also create jobs for residents, something that will increase revenue collections by councils,” he said.

The Minerals Deputy Minister, Dr Stephen Kiruswa, said despite early disbursement of the fund by Barrick, the project’s commencement was affected by a lack of regulations that would oversee such projects.

He said things have now been settled, noting that it is now clear that such projects should be executed through the joint oversight of the government on behalf of citizens and the investor.

“Barrick dished out the funds for the project, but following the possible increase in the project implementation costs, the government will be required to top up the funds in order to close the deficit,” he said.

While tabling the 2022/23 budget in Parliament last year, the minister for Works, Transport, and Communications, Prof Makame Mbarawa, said preparation was underway for the implementation of the project to construct the road at the tarmac level.

“In the 2022/23 Fiscal Year, a total of Sh1 billion has been allocated for the preparation of the project execution to the tarmac level,” he said.

However, a source from the project technical implementation team formed by the Tanzania National Roads Agency (Tanroads) and Barrick officials said they have locked themselves at the District Executive Director’s (DED) office in order to review the project design.

“The team is working on issues that will provide answers to different questions such as the project design, actual costs, the value per kilometre, commencement of the project, and several others,” he said.

“Even the people who are referred to provide public education to beneficiaries in the respective wards in order to prepare citizens to benefit from the project-associated opportunities are not doing what is being said,” he added.

Rather, they are conducting an Environmental and Social Impact Assessment (ESIA) for the project, according to him.