Tanzania collects Sh102.18 billion in nine years of Nyerere Bridge operation
What you need to know:
- The feasibility study report shows that since its inception the project is expected to repay the Fund a total of Sh344 billion in the next 30 years.
Dar es Salaam. The government said on Tuesday, August 27, 2024, that a total of Sh102.18 billion have been collected in the nine years of operation of the Nyerere Bridge in Kigamboni.
The National Social Security Fund (NSSF) invested in the bridge construction and started operating the bridge in May 2016.
Deputy Minister of State in the Prime Minister's Office (Labour, Youth, Employment, and People with Disabilities), Mr Patrobas Katambi, revealed the revenue collections in Parliament when responding to a question from Dr Faustine Ndugulile, Kigamboni MP, CCM.
In his fundamental question, Dr Ngugulile sought to know when NSSF will conclude recovering the funds invested in the bridge construction before transferring the project to the government.
“By July 2024, marking nine (9) years of operation, Sh102.18 billion has been collected from various tolls,” Mr Katambi said in Parliament.
He said the feasibility study report shows that since its inception the project is expected to repay the Fund a total of Sh344 billion in the next 30 years.
“The amount covers investment costs, security, and the value of the invested money. Thus, after the funds have been repaid, the project will be handed over to the government,” he said.
Responding to a supplementary question from Mr Abdallah Chaurembo, Mbagala MP, CCM, the deputy minister said NSSF will continue investing in efficient areas that would benefit many citizens and bring prosperity.
“After NSSF has completed collecting funds from the project, the government will consider the best way for citizens to enjoy the investment without further toll payments,” he said.
In a supplementary question, Ms Ester Bulaya, Special Seat MP, Chadema, sought to know the government’s plan to subject NSSF-invested projects to an in-depth assessment to unveil incurred losses through investment in inefficient projects.
In his response, Mr Katambi said actuarial valuations are done every three years, providing directives on possible challenges in the investment projects.
He said the NSSF Act directs that retirees should be paid their benefits within 60 days of retirement, noting that using different systems of Information and Communication Technology (ICT) payments have been effected even within 10 days.
“NSSF has carried numerous improvements. Currently, there is no existing payment challenge in the retirees' benefits,” he said, observing that invested funds are not expected to pay retirees benefits.
He said to efficiently and effectively oversee investments made by social security funds, the government has prepared special guidelines that are supervised by the Bank of Tanzania (BoT).
Mr Katambi said guidelines direct social security funds to better understand the project before progressing to approval.
Furthermore, he said procedures require social security funds to get BoT accreditation to proceed with investment plans.
Regarding return on investment, he said some of the projects focus on the provision of services and relief to citizens instead of doing business per se.
