New funding system unlocks 330bn/- for roads
SIMIYU: THE government has channeled more than 330bn/- into the Road Fund within one month under a new funding arrangement designed to improve the flow of resources to road infrastructure projects and accelerate construction and rehabilitation works across the country.
The arrangement, introduced in the 2026/27 financial year, allows designated road and fuel toll revenues to be transferred directly to the Road Fund and other infrastructure agencies, reducing reliance on the previous funding route through the central government financing system.
Under amendments to the Road and Fuel Tolls Act, the new framework provides for 70 per cent of specified road and fuel toll collections to go to the Road Fund and Tanzania Rural and Urban Roads Agency (TARURA), while 25 per cent goes to the Consolidated Fund and five per cent to a special account for infrastructure supporting special economic and export processing zones.
The reform is intended to improve the availability of funds, minimise administrative delays and ensure more predictable financing for road development and maintenance.
Prime Minister Dr Mwigulu Nchemba said the new arrangement was already yielding results, with more than 330bn/- deposited into the Road Fund within a month since the government began implementing the new funding approach.
“Since we passed the budget, I have witnessed more than 330bn/- being deposited into the fund within just one month,” he said on Saturday while addressing residents at Mwanhuzi Bus Stand in Bomani Village, Meatu District, Simiyu Region.
He said the government had identified three priority areas for the funds, including rehabilitating roads critical to economic activities, facilitating the return of contractors who had suspended work due to delayed payments and providing advance payments to contractors awaiting the commencement of construction projects.
The Prime Minister said the approach would help address longstanding challenges affecting road infrastructure development, particularly delayed payments that have disrupted the implementation of construction projects.
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On specific projects, Dr Nchemba said the contractor undertaking the 65-kilometre Nkoma–Lalago road would receive an advance payment to facilitate the commencement of upgrading works to bitumen standard.
He also directed the Minister for Works, Mr Masanja Kadogosa, to expedite the design of a road connecting Simiyu and Singida regions through Meatu and Iramba districts to enable its inclusion in the next financial year’s budget.
Turning to healthcare services, the Prime Minister warned health workers against charging children under five for medical treatment, insisting that government guidelines provide for free healthcare services for this age group.
“The guidelines are clear: Children under five are entitled to free medical treatment. Why are you charging them?” he questioned.
He further directed health workers to give immediate attention to pregnant women arriving at health facilities in labour, stressing that they should not be subjected to unnecessary delays.
Dr Nchemba also condemned the practice of requiring families of patients in need of emergency referrals to contribute money for fuel before ambulances can transport them to referral hospitals.
