Parliamentary Committee warns institutions over costly contracts

TANGA: THE Parliamentary Committee for Infrastructure Development has cautioned government institutions against entering contracts that may later lead to increased costs and financial losses.

The warning was issued on Thursday by the Committee’s Chairman, Mr Deusdedit Kakoso, during the conclusion of the committee’s visit to institutions under the Ministry of Transport, including the Tanzania Railways Corporation (TRC), Tanzania Ports Authority (TPA) and Tanzania Airports Authority (TAA). “Ensure that you enter into realistic contracts.

Let’s avoid agreements that force institutions to pay more than expected, ultimately harming the government,” Mr Kakoso said.

He cited an example where a contract initially estimated at 95bn/- ended up exceeding 100bn/-, stressing the need to avoid such cost overruns.

Additionally, Kakoso urged the Ministry’s executives to eliminate bureaucratic hurdles that inflate government expenses and delay project completion, leading to financial losses.

Mr Kakoso praised TRC for successfully constructing the Standard Gauge Railway (SGR) using a task force of Tanzanian youth, noting that such approach has accelerated progress while keeping costs low.

He urged the Tanzania Roads Agency (TANROADS) to adopt a similar strategy to reduce road construction expenses. Regarding railway development, he commended TRC’s efforts to enhance rail transport in the northern region, aligning with President Samia Suluhu Hassan’s vision of strengthening connectivity across northern Tanzania.

However, he expressed concerns over the insufficient budget allocation for the Ruvu-Korogwe-MoshiArusha railway project, emphasising that the funding does not reflect the size and strategic importance of the route.

“The railway is crucial as it will help reduce the cost of living for the people in the northern region,” said the Chairman.

TRC Director of Infrastructure, Engineer Machibya Massanza, said that the government has ambitious plans to revamp the entire railway network, including major rehabilitation of the Ruvu Junction-Tanga (188 km) and Mruazi-Arusha (381 km) railway lines.

Eng Massanza revealed that TRC had signed contracts worth 132.54 million US dollars with China Civil Engineering Construction Corporation (CCECC) for the rehabilitation of 533 km of track.

The project includes: Replacing old light rails with stronger ones, increasing bridge capacity from 13 tonnes to 18.5 tonnes per axle and installing 80-pound per yard (40 kg/m) heavy rails.

Once completed, train speed will increase from 20 km/h to 75 km/h, ensuring safer and faster freight and passenger transport.

He further pointed out that the government had completed studies and designs for the construction of Standard Gauge Railway (SGR) from Tanga to Musoma, spanning 1,028 kilometres.

This railway line will connect Tanga Port to key mining areas such as Magadi Mines (Engaruka), Mijingu Phosphate and Nickel (Dutwa), passing through Kilimanjaro, Arusha, Manyara, Shinyanga, Simiyu, Singida and Mara regions.

Eng Massanza said efforts to secure funding for these transformative projects were underway, with private sector involvement expected.

Meanwhile, the TRC Director of Operations, Mr Focus Sahani said the success of trials for carrying cargo on the SGR up to Morogoro has given the Corporation impetus of starting trials of carrying cargo to Dodoma, a feat which would revolutionise cargo transport from the central zone to Dar es Salaam.

Mr Sahani said trials were scheduled to start soon, disclosing that TRC had already received 264 cargo train carriages.