SGR contractor starts settling 2.6bn/- levy debt

DODOMA: YAPI MERKEZI Company has begun settling a 2.6bn/- levy obligation owed to Nzega District Council, with the first instalment already paid as part of an agreed payment arrangement linked to the construction of the Standard Gauge Railway (SGR).

Deputy Minister for Transport David Kihenzile disclosed in the National Assembly yesterday while responding to a basic question from John Luhende (Bukene-CCM), who sought clarification on when Yapi Merkezi would settle the amount owed to the council.

Mr Kihenzile said Yapi Merkezi, the contractor responsible for the construction of Section Four of the SGR from Tabora to Isaka, has already begun implementing an agreement for the payment of levies on construction minerals used in the project, particularly those extracted from borrow pits under the jurisdiction of Nzega District Council (Rural).

He noted that the company paid 66m/- in March 2026 as the first instalment of the levy payments.

“The second instalment of 136.7m/- was scheduled for payment in May 2026, followed by a third instalment of the same amount in July 2026,” he noted further.

Thereafter, monthly payments of 136.7m/- will continue from October 2026 through to March 2028 until the agreed levy obligations are fully settled.

In a supplementary question, MP Luhende wanted to know what measures the government has put in place to ensure that residents living around the SGR construction corridor in Nzega District are given priority in employment and other opportunities arising from the project.

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Mr Kihenzile said the ongoing mega infrastructure projects offer a wide range of opportunities for Tanzanians, including employment, supply of construction materials and participation in various service contracts.

He stressed that the opportunities are open to all qualified Tanzanians and should not be viewed as the exclusive preserve of communities living near project sites.

“All Tanzanians are entitled to benefit from these opportunities. It would be unfair to reserve them for residents of specific areas, given that other parts of the country do not enjoy similar economic opportunities such as mineral resources and other sources of wealth. These opportunities are therefore open to all Tanzanians,” Mr Kihenzile added.