What mega projects under PPP will entail
What you need to know:
- Mr Kafulila said the project execution through PPP will provide budgetary relief and reduce government lending for the projects as funding will be done by the private sector.
Dar es Salaam. The government has provided details on development projects that will be implemented under public-private partnerships (PPPs).
They include a planned 50km bridge connecting mainland Tanzania and Zanzibar that is aimed at facilitating movement of goods and people, as well as a 205km expressway between Kibaha and Morogoro.
Others are bus rapid transit and solar power projects to be implemented in Kilimanjaro, Dodoma and Singida regions.
The details were provided by the PPPs commissioner in the Ministry of Finance and Planning, Mr David Kafulila, during a visit to Mwananchi Communications Limited (MCL) headquarters in Dar es Salaam.
Mr Kafulila said a Chinese firm has expressed interest in implementing the Dar es Salaam-Zanzibar bridge project through PPP.
Without naming the firm, he said a feasibility study for the project was underway.
“The outcome of the feasibility study will determine whether the investor will be convinced to implement the project or not. Once the company is convinced, the project will benefit the country and investors,” he said.
If the project is implemented, the resultant bridge will be the longest of its kind in Africa.
Earlier this month, Works and Transport deputy minister Godfrey Kasekenya named the prospective investor as M/S China Overseas Engineering Group Company (Covec).
He was responding to a question in Parliament posed by Ms Mwantum Dau Haji (CCM-Special Seats), who sought to know when the project would kick off.
Mr Kasekenya said talks that began on March 11 were at an advanced stage.
The bridge construction idea was first floated by some Tanzanians living and working abroad.
The idea prompted heated debate among citizens, with some arguing that it is a pipe dream.
But science and technology has proven that the project is feasible as long as adequate funds are made available.
Mr Kafulila said he recently convened a meeting of government institutions from the works and transport sectors to identify projects that could be executed under PPPs.
He named the institutions as Tanzania Railways Corporation (TRC); Tanzania National Roads Agency (Tanroads); Tanzania Ports Authority (TPA); Tanzania Airports Authority (TAA), UDA Rapid Transit (Udart) and Tanzania Electric Supply Company Limited (Tanesco).
He said the proposed Kibaha-Chalinze-Morogoro expressway was earmarked to be implemented under PPP, noting that the government is in the final stages of getting the investor.
“The project will entail 78.9km stretching from Kibaha to Chalinze slated to cost $340 million and the 120km section from Chalinze to Morogoro expected to cost $500 million,” he said, adding that the toll road project aims at reducing congestion on existing roads.
Mr Kafulila said the project execution through PPP will provide budgetary relief and reduce government lending for the projects as funding will be done by the private sector.
Another project is the envisaged Igawa-Tunduma road, which is currently overwhelmed by lorries carrying cargo imported for neighbouring countries through Dar es Salaam Port.
“Some roads in Dar es Salaam will also be constructed through PPP in order to decongest the city,” he said.
Regarding BRT projects, Mr Kafulila said nine companies have applied for implementation of the Kibaha-Chalinze project.
“$7.1 million has been utilised for preparation of the Kibaha-Chalinze project plan in order to get an investor who will be ready to invest $800 million,” he said.
Mr Kafulila said there are three solar power generation projects requiring an investment of $300 million to be implemented in Singida, Dodoma and Same in Kilimanjaro Region that will collectively generate 210 megawatts.
According to him, the PPP projects will include the $57 million power distribution project slated to cover 82 km.
He said another project involves the natural gas distribution under the Tanzania Petroleum Development Corporation (TPDC).
“Not only the project will reduce the use of fuel in the country, but also it will increase efficiency of the Mtwara-Dar es Salaam natural gas pipeline which is currently utilized by only 15 percent,” he said.
The project will cost $251 million slated to be injected by the investor through the signed contract.
