Tanzania, Burundi agree to start Sh5 trillion SGR project
What you need to know:
- The standard gauge railway (SGR) project, valued at Sh5.38 trillion, is expected to be completed within six years and is projected to stimulate economic growth in four key sectors: electricity, mining, telecommunications, and trade between the two nations.
Dar es Salaam. The governments of Tanzania and Burundi have signed an agreement to commence the construction of a 282-kilometre modern railway between Uvinza and Musongati.
The standard gauge railway (SGR) project, valued at Sh5.38 trillion, is expected to be completed within six years and is projected to stimulate economic growth in four key sectors: electricity, mining, telecommunications, and trade between the two nations.
A Chinese company, CREGC & CREDC, has been awarded the contract, with construction set to begin in two weeks, according to Permanent Secretary of the Tanzanian ministry of Transport, Prof Godius Kahyarara.
Speaking at the contract signing ceremony yesterday, Prof Kahyarara, highlighted that multiple countries have expressed interest in joining the SGR network.
“Burundi has joined, DRC has joined, and the railway is a great opportunity because it boosts the business of the Tanzania Railways Corporation (TRC). This modern railway is more than just for transporting cargo and passengers; it can also transmit electricity. Some 300 megawatts is no small matter, but TRC can handle it,” he said.
He also noted that landlocked countries would benefit from internet services through the railway, as major railway operators globally generate revenue from telecommunications.
“Through this train, landlocked countries will be provided with internet services,” he stated.
Tanzania is building 2,561 kilometres of the standard gauge railway line 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 spur to Burundi, the Democratic Republic of Congo (DRC) and Rwanda, according to the Tanzania Railway Corporation which is overseeing the project. The three countries largely use the Tanzanian port to import and export goods.
Prof Kyaharara also emphasised the potential of the railway, to transport nickel minerals from the Musongati area. The minister for Works, Prof Makame Mbarawa, directed TRC to ensure adherence to international safety standards and proper financial management.
“TRC, ensure that you adhere to international safety standards in the project implementation and that the financial management of the project does not include unnecessary costs. Eligible citizens should be compensated,” he said.
Burundi’s minister for Infrastructure, Public Works, and Social Housing, Mr Dieudonné Dukundane, hailed the agreement as a milestone in strengthening trade between Tanzania and Burundi.
“The improvement of services at the Port of Dar es Salaam and the construction of the modern railway will further strengthen investment, not only in Tanzania and Burundi but across the entire region. These countries have reached a level of trust, demonstrating that when African nations support each other, they can achieve great progress,” he said.
“I have seen how they started the SGR in Kenya, and I saw how you started the SGR in Tanzania. All of that was a lesson for Burundi. And I can assure you that the example I saw in Tanzania is one to be followed by the entire African continent,” Mr Dukundane noted.
According to TRC director general Masanja Kadogosa, the construction will be executed in two phases: Uvinza to Malagarasi and Malagarasi to Musongati.
“Some 240 km are for the main line and 42 km are for passing tracks, and through this project, a bridge connecting Tanzania and Burundi will be built, along with seven stations,” he said.
According to him, the funds for the implementation come from the African Development Bank (AFDB).
Speaking on behalf of the African Development Bank, chief transport engineer, Mr Mumina Wa-Kyendo, emphasised that the project represents one of the largest transport sector investments in Africa.
“The project brought a total investment of the transport sector in Tanzania to $5 billion and that is 70 percent of all investment of the Bank in Tanzania. So, transport is leading by far and by large and this is the demonstration of the commitment of the government of Tanzania to not only infrastructure but also the transport sector,” he said.
The Chinese contractors, CREGC & CREDC, pledged to work closely with all stakeholders, ensuring strong communication and coordination throughout the project.
