Govt settles all outstanding payments owed to SGR contractors

TABORA: Minister for Transport, Professor Makame Mbarawa, has said that no contractor working on the construction of the Standard Gauge Railway (SGR) project along the Makutupora–Tabora section, which passes through Singida Region, has any outstanding claims against the Government. He emphasized that the project does not face any funding challenges.

Professor Mbarawa made the remarks at Nyahuha in Tabora Region during an inspection tour to assess progress on the railway construction.

He explained that the challenge previously encountered was the contractor’s capacity to plan and execute the work at the required pace in order to submit payment claims on time.

He said the Government had ensured that sufficient funds were available for the implementation of the project, thanking President Samia Suluhu Hassan for facilitating the allocation of 3.67tri/- last year to support the continuation of construction.

“This project has no funding challenges because last year, Her Excellency President Samia Suluhu Hassan enabled us to secure 3.67tri/-. Indeed, there is no problem with funding, and we are very grateful to the President for making these funds available,” Professor Mbarawa said.

He clarified that the availability of funds alone does not mean payments can be made without the contractor fulfilling the required procedures, including submitting payment claims known as Interim Payment Certificates (IPCs).

According to the minister, the contractor had been facing difficulties in preparing and submitting sufficient IPCs in line with the amount of work completed, a situation that contributed to delays in the payment process.

“There is no funding problem here. The main problem was that the contractor himself lacked the capacity to produce sufficient IPCs,” he emphasized.

Professor Mbarawa said there were now prospects for improved project implementation, given the work arrangements put in place and the capacity the contractor had demonstrated in carrying out the work.

He added that, according to the information he had provided, the submitted payment claim had a deadline of November 6, and the Government would make the payment before that deadline expired.

He said the Government expected work to continue at the required pace to ensure the project was completed within the scheduled timeframe.

Furthermore, Professor Mbarawa explained that the Government aimed to reach the final stages of construction on the third section by 2028, paving the way for trial operations of the modern railway.

He emphasized that the Government would continue monitoring the project’s progress to ensure the contractor fulfilled its responsibilities in accordance with the established plans and that construction proceeded without unnecessary obstacles.

For his part, Tanzania Railways Corporation (TRC) Director General Machibya Shiwa said the corporation believed that dividing the project into five sections and strictly managing the implementation schedule would make it possible to complete construction in line with the set objectives.

He added that completion of the project would enable the modern railway to provide transport services between Dar es Salaam and Mwanza, a development expected to improve the efficiency of passenger and freight transportation in the country.