Govt proposes measures to upgrade road projects with domestic funds

DODOMA: THE government on Thursday suggested measures that could mobilise more domestic funds for roads’ constructions, repairs and maintenance.

Tabling the 2024/25 national budget in the National Assembly in Dodoma on Thursday, Finance Minister Dr Mwigulu Nchemba proposed amendment to the Road and Fuels Tolls Act CAP 220, to charge 382/- per kilogramme of Compressed Natural Gas (CNG) used in motor vehicles.

“The measure is intended to increase government revenue which will be used in roads’ repairs and maintenance, as well as creating equity with vehicles, which use petrol fuel contributing for maintenance and repairing of roads through fuel levy,” Dr Nchemba stated. He said the collected revenue will be directed to the Road Fund.

The measure is expected to increase government revenue by 9.5bn/-.

“I propose to set aside funds for roads infrastructure development from the revenue derived from the petrol price fall in the market,” he said, elaborating that such funds will also be remitted to the Road Fund.

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This arrangement will be managed by Special Committee which will be formulated by minister responsible for energy in collaboration with the finance minister with the aim of proposing amount to be set aside on the basis of average market price at that particular time.

Minister Nchemba said the sixth phase government has been actively involved in enhancing the country’s transport infrastructure, to facilitate socio-economic activities for its citizens.

This includes the construction and rehabilitation of highways, regional roads, bridges, urban roads and rural roads through the Tanzania National Roads Agency (TANROADS) and the Tanzania Rural and Urban Roads Agency (TARURA).

“There is no doubt that Her Excellency walks her talk! As such, the construction of the 3km Kigongo – Busisi Bridge and its 1.66 km access road to bitumen standard is at 88 per cent of its completion where a total of 426.1bn/- has been spent, and the project is expected to be completed by 2024/25,” he explained.

In recognising the importance of rural roads for the lives, economy and safety of Tanzanians, the government has continued to increase the budget for TARURA from 710.3bn/- in 2022/23 to 825.09bn/- in 2023/24 and further to 841.19bn/- for the year 2024/25.

This budget will enable TARURA to continue with its action plan implementation of constructing, maintaining and rehabilitating roads to improve transport infrastructure in rural and urban areas. The government in collaboration with the development partners has continued with construction of roads and over 14 airports.

These projects worth 2.81 billion US dollars (about 7.34tri/-) comprising of concessional loans and grants from development partners such as the African Development Bank (AfDB), World Bank, European Investment Bank (EIB), JICA, Kuwait Fund for Arab Economic Development and OPEC Fund for International Development.

Some of the roads being constructed with funding from the partners include: Dar es Salam Bus Rapid Transit Project Phase II (Kariakoo-Mbagala), Phase III (Posta – Gongolamboto) and Phase IV (Posta – Tegeta); Dodoma City Outer Ring Road Project; Mnivata – Masasi – Newala Road; Tanzania/Burundi: Regional Rumonge – Gitaza/Kabingo – Kasulu – Manyovu Road; Multinational: BagamoyoHorohoro/Lunga Lunga -Malindi Road; Malagarasi– Ilunde-Uvinza Road; Kazilambwa – Chagu Road; Kasekese – Ikola – Karema Port Road; Kahama – Bulyanhulu – Kakola Road; Lusahunga- Rusumo, Mtwara – Mingoyo – Masasi, Rutukila – Songea, Iringa – Msembe Road; and Jangwani bridge.

These works are carried out concurrent with the construction of Msalato International Airport, as well as Tanga, Lake Manyara and Iringa airports. These projects are ongoing and some are expected to be completed in 2024/25.

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