Revealed: Gaps in Tanzania’s key transport projects

Dar es Salaam. A parliamentary committee has raised concern about the implementation and efficiency of key infrastructure projects.

It warned that delays and mismanagement could undermine the government’s multi-trillion-shilling investments in transport.

The Public Investment Committee (PIC), which presented its report in Parliament on Monday, highlighted major operational inefficiencies in the bus rapid transit (BRT) system, standard gauge railway (SGR) and Air Tanzania Company Limited (ATCL), among other government investments, and called for urgent intervention.

BRT underutilisation

The committee flagged operational shortcomings in the Dar es Salaam BRT project, saying it remains largely underutilised.

Tanzania is rolling out in phases the BRT system that uses dedicated roads. The first phase, which connects Kimara and Mbezi in Dar es Salaam and Kibaha in Coast Region with the city centre through Morogoro Road, became operational in 2016.

The building of infrastructure for the second phase – stretching from the city centre to Mbagala – has been completed but is waiting for buses. The third and fourth phases are still under construction.

Despite the completion of the first phase (Kimara–Kivukoni), the committee said only 100 buses are currently in operation instead of the 305 required.

“The lack of deliberate efforts to fully operationalise the BRT is alarming. This project was meant to ease congestion in Dar es Salaam, but without proper management, the public investment made could go to waste,” committee chairman Augustine Vumma Hole told Parliament in Dodoma.

The committee has urged the Dar Rapid Transit Agency (Dart) to fast-track the selection of service providers to ensure that all completed phases function at full capacity.

SGR connectivity

The committee also expressed concern over inadequate infrastructure to support freight transport on the SGR. The committee estimates that 90 percent of SGR revenue will come from cargo transport but yet there is poor connectivity to road networks which could limit its efficiency and financial viability.

“Several cargo stations lack road access, making it difficult to transport goods from railway depots to major highways. This is a serious gap that could affect revenue generation,” the committee said.

Parliament has recommended that the government, through the Tanzania Rural and Urban Roads Agency (Tarura) and the Tanzania National Roads Agency (Tanroads), prioritise the construction of essential road networks connecting SGR cargo stations to ensure seamless freight movement.

“The absence of supporting rail and road infrastructure reduces the potential revenue and efficiency of the SGR,” the committee said.

“The committee believes this issue must be addressed to ensure that the public capital invested delivers value and efficiency.”

Tanzania is building 2,561 kilometres of SGR, which will connect the port of Dar es Salaam along the Indian Ocean to Mwanza on Lake Victoria and Kigoma on Lake Tanganyika.

The modern railway will eventually be extended to Burundi, the Democratic Republic of Congo (DRC) and Rwanda, according to Tanzania Railway Corporation, which is overseeing the project.

TRC recently signed contract with two Chinese companies for the construction of a 282-kilometre modern railway between Uvinza and Musongati in Burundi.

ATCL leasing model

The committee raised concern over the financial struggles of the ATCL, linking the performance of the state-run company to the existing leasing model.

In its assessment of ATCL, the committee warned that the airline’s financial position remains fragile due to continued aircraft leasing from the Tanzania Government Flight Agency (TGFA), accusing the arrangement of adding the company’s operating costs, and therefor making it difficult for ATCL to sustain profitability.

ATCL has reported financial losses for three consecutive years, with the committee saying that 95 percent of its debts is attributed to lease payments to TGFA. The committee found that these financial constraints are preventing the airline from expanding into new markets.

“The current model has distorted ATCL’s financial position, affecting its ability to secure loans and grow its operations,” the team stated.

“The government needs to fast-track the transfer of aircraft ownership from TGFA to ATCL by June 2025 to reduce costs and improve financial stability,” it said and called for the cancellation of debts to stabilise the airline’s balance sheet.

The committee’s findings sparked debate on the effectiveness of government-led infrastructure projects.

With significant portions of the investments funded through loans, lawmakers warned that failure to address operational inefficiencies could result in financial losses for the country.