THE UNITED REPUBLIC OF TANZANIA...10 Year Transport Sector Investment Programme (TSIP) Phase I 2007/08 – 2011/12 United Republic of Tanzania – Ministry of Infrastructure Development10

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10 Year Transport Sector Investment Programme (TSIP) Phase I 2007/08 – 2011/12

United Republic of Tanzania – Ministry of Infrastructure Development

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10 YEAR TRANSPORT SECTOR INVESTMENT PROGRAMME (TSIP)

PHASE I

2007/08 – 2011/12

MMAAIINN RREEPPOORRTT



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TABLE OF CONTENTS Pages

LIST OF ABBREVIATIONS AND ACRONYMS .................................................................... vi

FOREWORD .......................................................................................................................... viii

EXECUTIVE SUMMARY........................................................................................................ ix

CHAPTER 1 ...............................................................................................................................1

1.0 INTRODUCTION...........................................................................................................1

1.1 Background .................................................................................................................1

1.2 TSIP Goals...................................................................................................................3

1.3 The TSIP Objectives ....................................................................................................3

1.4 Preparation of TSIP.....................................................................................................3

1.5 Structure......................................................................................................................4 CHAPTER 2 ...............................................................................................................................5

2.0 ECONOMIC BACKGROUND AND PROFILE OF TANZANIA ..................................5

2.1 Geographical Location and Natural Condition ............................................................5

2.2 The Economy ...............................................................................................................6 CHAPTER 3 ...............................................................................................................................7

3.0 TRANSPORT POLICY FRAMEWORK........................................................................7

3.1 Transport Sector Vision...............................................................................................7

3.2 Transport Sector Mission.............................................................................................7

3.3 The National Transport Policy and Implementation Strategies....................................7

3.4 Joint Assistance Strategy .............................................................................................7

3.5 Joint Infrastructure (Transport & Communications) Sector Review (JISR)................8

3.7 PPP Policy and Institutional and Regulatory Framework............................................8 CHAPTER 4 ...............................................................................................................................9

4.0 THE NATIONAL TRANSPORT SYSTEM ....................................................................9

4.1 Road Transport ...........................................................................................................9

4.2 Railway Transport .....................................................................................................11 4.2.1 Rail Asset Holding Company (RAHCO) ..............................................................12

4.2.2 Tanzania Zambia Railway Authority (TAZARA)..................................................13

4.3 Maritime and Inland Waterways ...............................................................................13

4.4 Air Transport ............................................................................................................15

4.5 Pipeline Transport .....................................................................................................15

4.6 Development Corridors..............................................................................................15 4.6.1 Dar-es-Salaam Development Corridor..................................................................19

4.6.2 Central Development Corridor.............................................................................19

4.6.3 Tanga Development Corridor ..............................................................................20

4.6.4 Mtwara Development Corridor ............................................................................20

4.7 Road Transport Corridors .........................................................................................21 CHAPTER 5 .............................................................................................................................22

5.0 INSTITUTIONAL REFORMS AND MAJOR STAKEHOLDERS IN THE

TRANSPORT SECTOR .......................................................................................................22

5.1 Institutional Reforms ................................................................................................22

5.2 Major Stakeholders Involved in Implementation of TSIP ..........................................23 5.2.1 Key Ministries ....................................................................................................23

5.2.2 Other Ministries..................................................................................................23

5.2.3 Regulatory Authorities and Boards.......................................................................23

5.2.4 Operational Agencies/ Parastatal Organizations ....................................................24

5.2.5 Development Partners (Foreign Countries and International Organizations) ............24

5.2.6 Financial Institutions...........................................................................................24

5.2.7 Training Institutions............................................................................................24



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5.2.8 Private Sector .....................................................................................................24

CHAPTER 6 .............................................................................................................................25

6.0 TRANSPORT SECTOR PERFORMANCE REVIEW (2001/02 – 2006/07) ..................25

6.1 Roads .........................................................................................................................25 6.1.1 Status of Physical Road Development Works........................................................25 6.1.2 Review of Maintenance Works for the first five year of 10YRSDP (2001/02 to

2005/06).............................................................................................................29

6.1.3 Major Achievements during the Period 2001/02 – 2006/07 ...................................31

6.1.4 Challenges, Shortfalls and Weaknesses ................................................................32

6.2 Railways ....................................................................................................................32 6.2.1 Reli Asset Holding Company (RAHCO) ..............................................................32

6.2.2 Tanzania Zambia Railway Authority ....................................................................34

6.2.2 Weaknesses and Shortfalls of Railways Sub-Sector...............................................35

6.2.3 Strategic targets set for the Railways ....................................................................35

6.3 Maritime Transport ...................................................................................................35 6.3.1 Coastal Ports ......................................................................................................35

6.3.2 TPA Maintenance costs (2001/02 – 2006/07)........................................................36

6.3.3 Containerization .................................................................................................37

6.3.4 Inland Waterways ...............................................................................................38

6.3.5 Achievements .....................................................................................................39

6.3.6 Weaknesses and shortfalls ...................................................................................39

6.4 Air Transport ............................................................................................................39 6.4.1 Investment and Operational Performance (2001/02 – 2005/06) ..............................40

6.4.2 Passenger Traffic ................................................................................................40

6.4.3 Cargo Traffic......................................................................................................41

6.4.4 Achievements/strengths.......................................................................................41

6.4.5 Weaknesses / shortfalls of Air Transport ..............................................................42

6.5 Institutional and Capacity Building Measures .............................................................42

6.6 Funds Allocation for the Past Five Years (2001- 2006) ...............................................43

6.7 Issues for further consideration .................................................................................43 CHAPTER 7 .............................................................................................................................45 7.0 SCOPE OF THE TRANSPORT SECTOR INVESTMENT PROGRAMME (2007/08 –

2016/17).........................................................................................................................45

7.1 Need for TSIP ............................................................................................................45

7.2 Maintenance of Existing Transport Infrastructure ....................................................47 7.2.1 Strategy..............................................................................................................47

7.2.2 Road Network Maintenance ................................................................................48

7.2.3 Air Transport......................................................................................................50

7.2.4 Rail Transport.....................................................................................................50

7.2.5 Marine Transport ................................................................................................52

7.2.6 Strategies for Bridging the Maintenance Funding Gap...........................................52

7.3 Development Programme...........................................................................................53 7.3.1 Selection Criteria ................................................................................................53

7.3.2 Prioritization ......................................................................................................53

7.3.3 Road Sector Prioritization of Projects ...................................................................53

7.3.4 Air Transport......................................................................................................56

7.3.5 Railways ............................................................................................................58

7.3.6 Maritime Transport .............................................................................................59

7.4 Sub Sectoral Investment Requirements......................................................................60 7.4.1 Roads.................................................................................................................60

7.4.2 Air Transport Investment Requirements ...............................................................62

7.4.2 Railway Transport ..............................................................................................64



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7.4.3 Maritime Transport Investment Requirement ........................................................66

7.5 Institutional Support..................................................................................................68 7.5.1 Human Resource Development............................................................................69


7.5.3 Data Base Development ......................................................................................69

7.5.4 Capacity Building of Local Consultants and Contractors .......................................70

7.6 Cross Cutting Issues...................................................................................................70 7.6.1 Safety & Security................................................................................................70

7.6.2 Environmental Issues ..........................................................................................71

7.6.3 HIV/AIDS..........................................................................................................71

7.6.4 Gender Mainstreaming ........................................................................................72

7.7 First Phase Transport Sector Investment Programme Requirement..........................72

7.8 Public Private Partnership (PPP) in the implementation of TSIP Option ..................73

7.9 The impact of the Proposed TSIP on MKUKUTA .....................................................74 CHAPTER 8 .............................................................................................................................76

8.0 FINANCING OF THE TSIP PROGRAMME...............................................................76

8.1 Infrastructure Development – Key to Economic Transformation ..............................76

8.2 Financing Strategy of TSIP Through Traditional Sources of Funding .......................76

8.3 Traditional Sources of Funding Road Infrastructure Not Adequate ..........................76

8.4 Financing Infrastructure Through Private Sector Participation ................................77

8.5 Roadmap for Private Sector Participation in Infrastructure Development ................78 CHAPTER 9 .............................................................................................................................79

9.0 MONITORING AND EVALUATION ..........................................................................79

9.1 Approach ...................................................................................................................79

9.2 Compliance of TSIP with the MDGs ..........................................................................79

9.3 Compliance of TSIP with Vision 2025 ........................................................................80 9.4 Compliance of TSIP with the NSGRP ...........................................................................80

10.0 APPENDICES ..............................................................................................................81

10.1 Annex 1: Transport Sector Stakeholders ...................................................................81 10.1.1 Key Ministries ....................................................................................................81

10.1.2 Regulatory Authorities and Boards.......................................................................82

10.1.3 Operational Agencies/Parastatal Organizations .....................................................85

10.1.4 Development Partners (Foreign countries and International Organizations).............86

10.1.5 Financial Institutions...........................................................................................86


10.1.7 Private Sector .....................................................................................................86

10.2 Annex 2: Proposed Road Projects for First Phase of TSIP.........................................88

10.4 Annex 4: TAA Development Projects for first phase of TSIP (USD 000s) ..................96

10.5 Annex 5: RAHCO Development Projects for Phase 1 of TSIP USD In Mill ..............97

10.6 Annex 6: TAZARA's Development Projects Disbursement In USD 000's ................100

10.7 Annex 7: TPA Proposed Projects (USD '000) ...........................................................101



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LIST OF MAPS AND TABLES

MAP 2.1: TANZANIA .................................................................................................................................... 5 TABLE 2.1: REAL GROWTH FOR VARIOUS KEY SECTORS ...................................................................... 6 TABLE 4.1: CONDITION OF TRUNK AND REGIONAL ROADS (JUNE 2007) ............................................ 9 TABLE 4.3: SUMMARY OF ROAD DENSITIES IN KENYA, UGANDA AND TANZANIA ......................... 10 MAP 4.2: THE RAILWAY NETWORK ........................................................................................................ 13 MAP 4.3: SEA AND INLAND PORTS .......................................................................................................... 14 MAP 4.4: EXISTING DOMESTIC AND INTERNATIONAL AIRPORTS ....................................................... 16 MAP 4.5: DEVELOPMENT CORRIDORS..................................................................................................... 18 TABLE 6.1: A LIST OF CONSTRUCTED / REHABILITATED TRUNK AND REGIONAL ROAD PROJECTS AND

BRIDGES IN THE PERIOD 2001/02 TO 2006/07 ............................................................................... 26 TABLE 6.2: A LIST OF ONGOING TRUNK ROADS PROJECTS WHICH WILL BE TAKEN ON BOARD THE TSIP

............................................................................................................................................................. 28 TABLE 6.4: TREND OF TRUNK AND REGIONAL ROADS CONDITION ................................................... 30 TABLE 6.5: TRC MAJOR DEVELOPMENT PROJECTS 2001/02-2005/06 ................................................ 33 TABLE 6.6: TRC MAINTENANCE PROJECTS 2001/02-2005/06 COST IN TSHS MILLIONS.................. 34 TABLE 6.7: TRC OPERATIONAL PERFORMANCE INDICATORS 2001 – 2004 ...................................... 34 TABLE 6.14 TRANSIT TRAFFIC THROUGH DAR ES SALAAM PORT 2001-2006 (IN TONS) ................. 37 TABLE 6.15: TRANSIT CARGO THROUGH MWANZA PORT BY MSCL VESSELS 2000/04 (IN TONS) 37 TABLE 6.18: MSCL FREIGHT PERFORMANCE (TONNES)...................................................................... 38 TABLE 6.19: NUMBER OF PASSENGERS HANDLED BY MSCL ............................................................. 38 TABLE 6.21: FINANCING FOR TRANSPORT SECTOR - 2001-2006 (IN TSHS MILLION) ....................... 43 TABLE 7.7: INVESTMENT REQUIREMENTS FOR TRUNK AND REGIONAL ROADS (USD 000) .......... 60 TABLE 7.10: SUMMARY OF DEVELOPMENT AND MAINTENANCE REQUIREMENT FOR AVIATION

SECTOR (USD 000’) ......................................................................................................................... 62 TABLE 7.11: SUMMARY OF DEVELOPMENT INVESTMENT AND MAINTENANCE REQUIREMENT FOR THE

RAILWAYS SUB SECTOR (USD 000’) ............................................................................................. 64



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LIST OF ABBREVIATIONS AND ACRONYMS

10YRSDP 10 Year Road Sub-Sector Development Programme

AADT Annual Average Daily Traffic

AQSRB Architect and Quantity Surveyor Registration Board

ATCL Air Tanzania Company Ltd

BADEA Arab Bank for Africa Development

BOT Build Operate and Transfer

CAF Construction Assistant Fund

CATC Civil Aviation Training College

CIDA Canadian International Development Agency

CIDF Construction Industry Development Fund

CRB Contractors Registration Board

DANIDA Danish International Development Association DFID Department for International Development

DIT Dar es Salaam Institute of Technology

DRC Democratic Republic of Congo

DMI Dar es Salaam Maritime Institute

DWT Dead Weight Tonne

EAC East African Community

EDF European Development Fund EIA Environmental Impact Assessment.

EMCU Environmental Management Coordination Unit

EPZ Export Processing Zone

ERB Engineers Registration Board

ERP Economic Recovery Program

FINIDA Finland International Development Fund

FY Fiscal Year GDP Gross Domestic Product

GoT Government of Tanzania

HDM4 Highway Development and Management Model

HIV/AIDS Human Immune Virus/Acquired Immunology Deficiency Syndrome

ICAO International Civil Aviation Organisation

ICT Information and Communications Technology

IDA International Development Association

IMO International Maritime Organisation

IRI International Roughness Index

IRP Intergrated Roads Project

IRR Internal Rate of Return

KADCO Kilimanjaro Airport Development Company

KPH Kilometre per Hour KIA Kilimanjaro International Airport

LAPF Local Authority Provident Fund

LGA Local Government Authorities

MDA Ministries Departments and Agencies

MDGs Millennium Development Goals

MID Ministry of Infrastructure Development

MoF Ministry of Finance MOHA - Ministry of Home Affairs

MoW Ministry of Works

MSC Maritime Service Company

MTEF Medium Term Expenditure Framework

NCC National Construction Council

NDF Nordic Development Fund

NEPAD New Partnership for African Development

NIT National Institute of Transport



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NMT Non Motorised Transport NPV/C Net Present Value/Cost

NPRA Norwegian Public Roads Administration

NRTP National Rural Transport Program

NSGRP National Strategy for Growth and Reduction of Poverty

NSSF National Social Security Fund

NTP National Transport Policy

OC Other Charges

ODA Overseas Development Agency

PMMR Performance Based Management and Maintenance of Roads

PMO-RALG Prime Minister’s Office – Regional Administration and Local Government

PMP Port Modernization Project

PPF Parastatal Provident Fund

PPP Public – Private Partnership PRS Poverty Reduction Strategy

PRSP Poverty Reduction Strategy Paper

PSO Public Service Obligation

RAHCO Reli Asset Holding Company

RETCOs Regional Transport Companies

RF Roads Fund

RFB Roads Fund Board RUSIRM Ruvuma and Southern Iringa Road Maintenance

SADC Southern Africa Development Community

SDI Spatial Development Initiative

SEAP Structured Engineering Apprenticeship

SIDA Swedish International Development Agency

ST Surface Treatment

SUMATRA Surface and Marine Transport Regulatory Authority

T2 CENTRE Tanzania Transportation Technology Transfer Centre

TAA Tanzania Airports Authority

TANAPA Tanzania National Park

TANROADS Tanzania National Roads Agency

TANZAM Tanzania Zambia Highway

TAS Tanzania Assistance Strategy

TAZARA Tanzania Zambia Railway Authority

TBA Tanzania Building Agency

TEMESA Tanzania Electrical, Mechanical and Electronics Services Agency

TEU Twenty Feet Equivalent Unit

TGFA Tanzania Government Flight Agency

THA Tanzania Harbours Authority

TPA Tanzania Ports Authority TICTS Tanzania International Container Terminal Services

TMA Tanzania Meteorology Authority

TPA Tanzania Ports Authority

TRC Tanzania Railways Corporation

TSIP Transport Sector Investment Program

TSRP Transport Sector Reform Program

UNDP United Nations Development Program UN-MDGs United Nations Millennium Development Goals

URRP Urgent Roads Rehabilitation Programme

VOC Vehicle Operating Costs



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FOREWORD his document presents the Transport Sector Investment Programme (TSIP). The TSIP is planned

to be implemented in two phases of 5 years each from financial year 2007/08 to 2016/17. The

programme takes cognizance of the existing macro-economic development programmes including the

Tanzania Development Vision 2025, National Strategy for Growth and Reduction of Poverty

(NSGRP), Tanzania Assistance Strategy (TAS) and Millennium Development Goals (MDGs).

Towards this end, the programme takes into account the need for integration of all transport modes or

sub sectors which include roads, railways, ports, and airports with a view of acting as a necessary

input and catalyst for the achievement of aforementioned economic goals. It should, however, be

noted that, on going projects under various parallel programmes or plans e.g. regional and other

national or sub sectors will be part of the TSIP without disturbing their current implementation

arrangements.

The TSIP main objective is to operationalise the Transport Policy Implementation Strategies by

translating the National Transport Policy (NTP) objectives into time bound actions and activities. The

Policy which was approved in 2003 calls for, among other things:

(i) Development of effective and efficient seamless transport infrastructure;

(ii) Mobilization of local and international resources to speed up integrated transport

infrastructure development;

(iii) Fostering involvement of public-private sector partnerships in the transport sector

investment and management;

(iv) Putting emphasis on rural access;

(v) Enabling the transport sector to tick and facilitate the growth of key economic sectors

including agriculture, manufacturing, mining, tourism and trade and,

(vi) Taking cognizance of existing problems and taking measures for improving urban

mobility.

The programme has been prepared in collaboration with PMO-RALG, and has been highly

consultative drawing expertise from transport sector stakeholders with the support of a part time consultant. The cooperation we have so far received from Development Partners through the Joint

Technical committee of the Forum of Government/Development Partners is highly appreciated. We

urge the Development Partners including the private sector to come out more frontally now to take up

the various components of the programme.

Tanzania has put in place key mechanisms to ensure that there is very efficient utilization of resources

and hence effective implementation of TSIP. The mechanisms include but not limited to Public

Procurement Act of 2004 that guide resource utilization through the process of procurement of goods and services; privatization contracts which guide resource collection and their utilization in the

privatized parastatals; and formation of regulatory authorities such as the Surface and Marine

Transport Regulatory Authority (SUMATRA) and Tanzania Civil Aviation Authority (TCAA), and

other executive agencies to undertake activities that were once done directly by the Central

Government e.g. Tanzania Airports Authority (TAA), Tanzania National Roads Agency

(TANROADS), Roads Fund Board (RFB), etc. which are monitored by the Ministry through

Performance Contracts. These mechanisms are a testimony that Tanzania wishes to utilize efficiently

resources that are collected basing on the Good Governance spirit.

As the saying goes “Unity is Strength”, I therefore take this opportunity to call upon all stakeholders

including the development partners to join hands together with us so that the aspirations of this

program can be achieved.

Omari A. Chambo

PERMANENT SECRETARY

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EXECUTIVE SUMMARY

he Transport Sector Investment Program (TSIP) is intended to implement one of the main goals

of the 4th Phase Government in Tanzania of ensuring that transport sector plays its rightful role of

facilitating other socio economic sectors to attain their aspirations. In the end this will lead to

development and hence poverty reduction in the country. As we are aware, transport plays a crucial

role in the growth of the national economy; it facilitates domestic and international trade, contributes

to national integration, and provides access to jobs, health, education and other facilities. Its demand

is derived and in its own, the transport sector employs a considerable number of people who depend

on it for their livelihood.

It is in view of these facts that the TSIP was formulated. The programme is a tool for implementing

the National Transport Policy aspirations guided by targets of Tanzania Development Vision 2025;

National Strategy for Growth and Reduction of Poverty (NSGRP); Millennium Development Goals

and other national and regional long term development strategies. This document provides the main

frame of the programme.

ECONOMIC PERFORMANCE

Tanzania's average GDP annual growth rate for the period 2000 to 2006 was 6.0%. In 2006, the GDP

grew to 6.2% compared to 4.8% in 2000. On average, GDP has been on increase for the past five years and it is expected to increase to reach 7.5% by 2008. This has been a result of economic reforms

undertaken by the country. Despite the overall increase in GDP, transport sector growth has been

fairly constant during the last six years at around 6.2%. This growth should have been ahead of the

overall economic performance in order to avoid a situation where it could obstruct other sectors which

demand transport services.

THE NATIONAL TRANSPORT SYSTEM

The current transport system consists of roads, railways, air, water, and pipeline modes. Total Road

Network length is about 85,517 km. This includes Trunk and Regional roads (28,892 km) which is

managed by TANROADS and the Urban, District and Feeder roads with a total of 56,625 km,

managed by Local Government Authorities (LGA). There are also some unclassified roads such as

those managed by TANAPA; Mining Companies, and Village authorities whose total length is not

easily available.

Tanzania railways system has a total length of 3,676 km of which 2,706 km is operated by Tanzania

Railways Limited (TRL) and 975 km by Tanzania - Zambia Railway Authority (TAZARA).

Tanzania maritime transport is characterized by the presence of major sea ports, which are Dar es

Salaam, Tanga and Mtwara, and inland water transport with Mwanza, Bukoba, Musoma and

Kemondo ports in Lake Victoria; Kigoma port in Lake Tanganyika; and Itungi and Mbamba bay ports

in Lake Nyasa. These ports are managed and operated by Tanzania Ports Authority (TPA).

Tanzania has a total of 368 aerodromes which are owned, managed and operated by different entities.

Tanzania Airport Authority (TAA) owns, manages, operates and develops 62 airports. There are four

International Airports namely; Julius Nyerere, Kilimanjaro, Zanzibar and Mwanza. Out of four

International Airports, two of them have been managed by TAA; namely Julius Nyerere and Mwanza

International Airports. Zanzibar International Airports is being managed by The Revolutionary

Government of Zanzibar. KIA was leased by to a private operator since 1998.

Pipeline transport in the country is used to transport crude oil products from Dar es Salaam to Ndola

refinery in Zambia, a distance of 1,750 km, and natural gas from Songosongo to Dar es Salaam, a

distance 232 Km. The crude oil pipeline is owned by TAZAMA while the Songosongo pipeline is

owned by SONGAS.

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INSTITUTIONAL REFORMS

The Government has made a notable progress in the transport sector institutional reforms. In order to

bring about efficiency and sustain economic growth, government departments whose functions were

of operational or service delivery nature have been transformed into semi autonomous agencies.

Operational Agencies are Tanzania National Roads Agency (TANROADS), Tanzania Airports

Authority (TAA), Tanzania Meteorological Agency (TMA), Tanzania Government Flight Agency

(TGFA), Tanzania Buildings Agency (TBA) and Tanzania Electrical, Mechanical and Electronic

Services Agency (TEMESA). Reforms have also resulted into the establishment of transport

regulatory authorities that include Surface and Marine Transport Regulatory Authority (SUMATRA)

and the Tanzania Civil Aviation Authority (TCAA). The reforms include increasing Private Sector

Participation in the Transport Sector through concessioning, management contracts and/or outright

sale of parastatals. Dar es Salaam Port Container Terminal, KIA and TRC operation have been

concessioned to the private sector. The National Transport Corporation and the Regional Transport

Companies (RETCOs) were out rightly sold. Furthermore, a strategy for the concessioning of the

operations of TAZARA as well as the revenue units of Tanzania Ports Authority (TPA) and those of

the Marine Services Company Limited (MSCL) is being finalized. The establishment of Roads Fund

(RF) and Roads Fund Board (RFB) has shown positive impacts as road maintenance has been improved. The Highway Ordinance has been replaced by the Roads Act, 2007. Similarly, the process

towards strengthening the TANROADS by giving it more autonomy is being undertaken, and at the

same time formulation of the Roads Safety Policy is at its final stages.

PERFORMANCE OF THE TRANSPORT SECTOR FOR THE PAST FIVE YEARS

In the last 5 years, the Government in collaboration with Development Partners has gradually invested

in the transport sector particularly the road sub sector which has markedly improved the condition of

roads. Railways, ports and airports authorities have been using their internally generated funds for

capital expenditures with minimum support from the government and donor community. The fact that

these parastatals were specified under the PSRC meant that investments in them were restricted. The

delays to complete the privatization process has led to a lot of deterioration in the infrastructure and

hence the services provided by these parastatals.

Notwithstanding the low level of resource availability during the past five years, the allocation of

funds to the transport sector has kept on increasing from USD 215.5 million in 2001/02 to USD 415.1

million in 2005/06. The total investment for the past five years in the transport sector was USD

1,484.7 million.

Roads Sub Sector

During the 1st five year period of the 10 YRSDP, it was planned to rehabilitate and upgrade 2,158.7

km of trunk roads at an estimated cost of USD 635.88 million and development of 3,505 km of

regional roads at an estimated cost of USD 130.6 million.

The physical performance for the first five years of 10 YRSDP was rehabilitation and upgrading of

1,168 km of trunk roads which is 54.3% of the target. About 4,184.9 km of regional roads which is

119% of the target were rehabilitated. Good performance in Regional Roads was mainly due to some

development partners programs which came in during the implementation of the programme.

Estimated cost for trunk and regional roads maintenance operations was USD 508 million. Expected

expenditure up to end June 2006 is USD 283.57 million which is 55.8% of the target.

The Major challenges and reasons for shortfalls (especially for Trunk Roads) in achieving targets of

the 10 YRSDP in the first five years were:

• Shortage of plant and equipment for road works in the country

• Inadequate financing

• Local Construction Industry Capacity, which is limited in managerial skills and financial

capacity. Also poor in equipment management skills and tendering skills.



xi

• Institutional capacity of the implementing agency with inadequate contracts management

skills among supervising staff and deficiencies in supervision facilities

• Delay in commencement of the programme due to late introduction and preparation of the

programme. The Consultant also delayed in submission of the final report (2002)

• Delay due to cumbersome procurement procedures in the initial years

TSIP has components which will address many of the above shortfalls.

Aviation Sub Sector

During the last five years, the Government through the Tanzania Airports Authority (TAA) and

Tanzania Civil Aviation Authority (TCAA) implemented a number of development projects which

were designed to further modernize the airports. The goal has been to make air transport improve and

expand air transport infrastructure to foster both domestic and international trade and hence

enhancement of socio economic activities.

The number of registered air operators in the country has been increasing year after year. The aviation

industry has been steadily growing with an average growth rate of 9% annually. This growth rate is

greater than the average 4% growth rate of the global aviation industry. Revenue collection from

airport operations has increased to TShs 23.0 billion in FY2006/07 from TShs 4.34 billion in

FY1999/2000. Airports infrastructure, services and conditions in Tanzania has also improved to a

great extent and has accelerated the need of improving them.

Notwithstanding these achievements, air transport sector has not been able to achieve its desired

goals. This has been mainly due to the following reasons:

• Deficiencies in the provision of international air navigation services.

• Inadequate airport facilities.

• Low human resources capacity to adequately manage and operate the air transport industry.

• Inadequate airport planning and management skills.

• Civil Aviation Master Plan (CAMP) that is in place does not accommodate the changes in

policy framework that have taken place nationally, regionally and internationally.

• Lack of knowledge of the emerging Economic Regulation concept.

• Inadequate capacity in trained pilots and aircraft maintenance engineers.

• The lack of a management system that will link the civil aviation headquarters and its centres

across the country.

• Manual collection and distribution of aviation data.

It is envisaged that the implementation of TSIP, the proposed air transport sub sector projects will

enable the sector to attain the desired goals within the next ten years.

Railway Sub Sector

Generally speaking the railway sub sector has been performing badly during the last ten years. The

infrastructure is dilapidated and services rendered are below standard due to many reasons including

old age and outdated permanent way and shortage of locomotives and wagons. The major event

towards undertaking corrective measure was the concessioning of TRC services in September 2007

to a company known as Tanzania Railways Limited (TRL). The company is a joint venture between

RITES Company of India who owns 51% shares and the Government of Tanzania who owns 49%

shares.

In terms of services, the number of transported passengers by TRL increased from 615,000 in 1999

to 683,000 in 2003 and dropped to 594,000 in 2006. Freight on TRC rose from 0.9 million tonnes in

the late 1989 to 1.446 million tonnes in 2002 and slightly dropped to 1.43 million tonnes in 2003 to

1.333 million in 2004 and further down to 0.775 million tonnes in 2006.



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Operational efficiency of TRC performance has been constrained mainly by infrastructural

problems. There is also growing competition from the road network and the North Corridor from

Mombasa to Kampala. The stiff competition from road transport has made TRC to discontinue its

passenger services between Dar es Salaam and Moshi. Poor rolling stock, i.e. locomotives and

wagons, have also contributed to the low operational performance of TRC. The old outdated narrow

gauge and several sequences of wash away of the railway infrastructure by floods has worsened the

situation and made the railway system inefficient.

TAZARA is facing a decrease in traffic from a maximum of 1.24 million tonnes in the late 1993 to the current average of about 600,000 tonnes a year, which is both caused by internal and external

factors such as:

• Poor performance of the economies and political instability of the land locked countries in the

Western part of our country,

• Change in traffic patterns,

• Competition from other regional corridors such as North Corridor, Maputo Corridor and

corridors through South Africa; and

• Railway infrastructure and rolling stock weaknesses.

Maritime Sub Sector

The Government through the Tanzania Ports Authority (TPA) has implemented a number of

development projects which were designed to further modernize the ports by providing additional

cargo handling equipment, improve and upgrade infrastructural facilities. A total of TShs.54,068 million was invested during the period of which 30% of the financing was from TPA own sources.

Notwithstanding the investment done in the past five years, TPA is faced with several challenges to

make the ports of Tanzania efficient. These challenges include:-

• Low capacity of handling containers at the Dar es Salaam Port (250,000 TEUs) compared to

an average demand of 300,000 TEUs per annum.

• Lack of space to increase the capacity of the container terminal at the Dar es Salaam Port.

• Inability of the Dar es Salaam Port entrance channel to handle ships of PANAMAX size

ships.

• Inadequate transport services from other modes (i.e. some of the port facilities, the railways

and road system).

• Inadequate human resources capacity to adequately manage the maritime transport.

THE TSIP PROGRAMME

The 4th Phase Government goals is to ensure that there exist an adequate transport infrastructure and

services, which are key factors in Tanzania’s efforts to promote growth and reduce poverty, as

described in the MKUKUTA - the National Strategy for Growth and Reduction of Poverty (June

2005). The TSIP Goals and Objectives to implement the overall Government Goal are outlined

below.

TSIP Goals

The goals of this programme are to ensure that:

(i) Each fundamental element of transport to be provided in the appropriate quality, quantity

and form.

(ii) All elements of transport are combined in a technologically optimum way for each mode of transport.

(iii) Each mode is operated in a most efficient way.

(iv) Appropriate mechanisms exist to ensure effective intermodal coordination and

communication between the user, the operator, the regulatory agency and the

government on all transport questions and issues.



xiii

(v) Transport plays its cardinal role of supporting the development of other sectors of the

economy and hence speed up development.

TSIP Objectives

The objectives of TSIP are as follows:

(i) Develop adequate, reliable, cost effective, efficient, safe, environmentally friendly and

seamless transport infrastructure.

(ii) Carry out timely maintenance on the transport infrastructure to preserve the asset.

(iii) Facilitate the mobilization of local and international resources to speed up transport

infrastructure development in an integrated manner.

(iv) Enable the transport sector to contribute to the growth, leading to better distribution of

income and therefore to the struggle against poverty and hence achieve sustainable socio-

economic development and integration.

(v) Foster and catalyze the involvement of public-private sector partnerships.

(vi) Ensure gender mainstreaming in all issues related to the transport development.

(vii) Ensure that transport development takes on board issues related to the disadvantaged

groups, e.g. woman and children, physically disabled persons, rural communities, etc.

(viii) Enhance efficiency of transport services internationally, nationally and locally.

Implementation of TSIP

Phase I of the TSIP will be implemented over a period of five years starting 2007/08 up to 2011/12. It

will focus on prioritized projects from all transport sub sectors. The prioritization criteria are as

follows:

(i) The on going projects which will necessarily have to come on board the program.

(ii) Studies that are required to determine viability of identified projects.

(iii) Projects which already have feasibility studies in place and whose financing has been

identified.

(iv) Projects of regional nature (i.e. projects which promotes regional integration) including

development corridors.

(v) Projects which improve urban mobility.

(vi) Projects which enhance agriculture productivity promote food sufficiency, enhance export

promotion, and those which support and enhance manufacturing.

(vii) Projects that enhances multimodal transport.

(viii) Projects focusing on attracting foreign investments enhancement such as mining and

tourism.

RESOURCE REQUIREMENT FOR TSIP (PHASE ONE)

The programme resource requirement for the Phase One of the TSIP is USD 6,192.52 million for

implementing various development projects, maintenance of existing facilities, institutional support

and cross cutting issues. This amount will be distributed over the five years period according to plans

for implementing the different projects. This TSIP programme has taken into account the current

MTEF at least for the first year of its implementation. The Government will put extra efforts to

identify other sources of funds to implement the other projected programme interventions beyond

2007/08.



xiv

Table 7.21: Summary of the Transport Sector Investment Requirement (USD Millions) Phase 1

of the TSIP.

SN

Programme

Component

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/11

FY

2011/12 Total

1 Roads 646.3 695.88 814.60 965.62 1,106.95 4,274.87

2 Air Transport 39.09 48.09 57.23 79.44 79.44 303.29

3 Railways 63.32 139.46 163.22 294.55 285.91 946.46

4 Maritime Transport 52.21 114.55 114.43 88.52 87.14 456.83

5 Institutional Support 28.47 33.91 30.55 30.84 33.31 157.57

6 Cross Cutting Issues 10.70 10.70 10.70 10.70 10.70 53.50

Grand Total 840.09 1,042.59 1,190.73 1,469.67 1,603.45 6,192.52

Source: MID

According to a World Bank on-going Study entitled Africa Infrastructure Country Diagnostic:

Transport: Roads, Railways, Ports, Airports, Urban Transport1, it is estimated that Tanzania will

need to invest at least USD 12,989 million in order to meet the basic scenario i.e. accessibility standards applicable to developed and Middle Income developing countries that will increase

Tanzania’s competitiveness of the economy and to improve social cohesiveness. Therefore, the total

TSIP investment of just about USD 5,000 million in five years is about 40% of the investment

required. This implies that Tanzania will have to sustain this level of investment in the next 10 to 15

years to be able to meet the basic scenario objectives. Furthermore, the report noted that Tanzania will

need to spend at least 8.4% of GDP to sustain this level of investment. Consequently, the Government

wishes to call on the developing Partners and the Private sector to increase their level of investment in

the transport sector as the study recommended that Government can affordably invest into the

Transport Sector only 8.4% of GDP (USD 1,857 million -2006 estimate) equivalent to USD156

million annually.

Out of the required USD 6,192.52 million, USD 2,475.17 million or 40% has already been committed

or secured. Therefore the identified funding gap in this programme is about USD 3,717.35 million or

about 60%. The financing gap will be bridged by Government revenues, donor assistance, loans from

financial institutions and the private sector. The financing of TSIP will enable the attainment of the MDGs, National Vision 2025, MKUKUTA and the National Transport Policy.

During the implementation of TSIP, priority is being focused on the involvement of private sector in

the development of transport infrastructure through public private partnership (PPP) concept in areas

where the private sector can easily invest alone or in partnership with the public sector. PPP is being

considered as a unique option for engaging private sector capital in the improvement of transport

infrastructure and services, through a sense of share of investment risks with the public sector. The

packaging of the Corridors Development initiatives is a good case in point on how the private sector is

going to get involved.

FINANCING THE TSIP PROGRAMME

Traditional Sources of Funding

The First Phase of the TSIP (2007/08-2011/12) is estimated to cost USD 6,192.52 million out of

which USD 2,475.17 million or 40.0% has already been committed or secured through the traditional

sources of funding mainly the GOT and the DPs with contributions from own funding in the case of

Sea Ports, Air Ports and Railways, and PPP for targeted projects in maritime, air and railway

transport. The identified funding gap in this programme is about USD 3,717.35 million or about

60.0%. For maritime, air and railway projects, it is hoped that the financing gap will be bridged by

Government revenues, donor assistance including non-traditional donors who the Government is

1 Findings of the on-going Africa Infrastructure Country Diagnostic Transport: Roads, Railways, Ports,

airport, Urban Transport by Vivien Foster and Robi Carruthers, World Bank presented at the SSATP

Annual General Meeting in Ouagadougou, Burkina Faso 5-7 November 2007.



xv

approaching, loans from financial institutions, and to large extend the private sector through PPPs.

However, for the road sub-sector which is traditionally funded solely by Government and

Development Partner assistance, Government thinking is to find alternative ways of financing the

national road network.

Private Sector Participation

The Government of Tanzania, like most governments of the developing world, is constrained with a

narrow domestic tax base to raise finances required for implementing its development agenda.

Moreover, the existing state of socio-economic infrastructure is another impediment for attracting

investments to the magnitudes sufficient to defray the development financing gap. Furthermore,

official development assistance has not been able to fill the gap. To sustain progressive socio-

economic development, therefore, Tanzania requires innovative tools for financing development

projects in order to expand its production frontier as well as improve economic competitiveness.

Therefore, during the implementation of TSIP, the priority will be on the involvement of private

sector in the development of transport infrastructure through public-private partnership (PPP) concept

in areas where the private sector can easily invest alone or in partnership with the public sector. PPP is

being considered as a unique option for engaging private sector capital in the improvement of

transport infrastructure and services, through a sense of share of investment risks with the public

sector. The packaging of Performance Based Management and Maintenance of Roads contracts

initiatives is a good case in point on how the private sector is going to get involved. In addition

MOFEP through the Central Bank can appoint international and local banks to issue infrastructure

bonds to finance the gap in the investments required to implement TSIP or the stabilization program

of the national road network to be prepared by December 2008.

Roadmap for Private Sector Participation in Infrastructure Development

The Government is committed to ensuring that more resources are mobilized for infrastructure

development from the private sector through Public-Private Partnerships. Therefore, a roadmap to this

commitment is as follows:

(i) MOID will ensure that the Draft National PPP Policy reaches the Cabinet for approval by

August 2008 and that an appropriate institutional framework is put in place by September

2008. A Nucleus PPP Unit should be set-up in Ministry of Finance and Economic Affairs

(MOFEA) to kick-start PPP and infrastructure bond projects by September 2008. A critical

mass of a cadre of staff with PPP knowledge is being created through 3 tailor-made courses

being offered here in Tanzania by the IP3 - Institute for Public-Private Partnership through

World Bank assistance, a total of 140 staff would have been trained by September 2008. The

course has been advertised to all MDAs.

(ii) MOFEA is urged to commit the Central Bank to accept the idea of issuing infrastructure

bonds to finance gaps in critical sectors such as roads, energy, etc. so that programmes

designed to leapfrog Tanzania to a medium developed country are fully funded.

Pronouncement on this should be made by September 2008. Thereafter, the MOFEP and the

Central Bank can make appropriate preparatory work that can allow international and local banks to participate in issuance of infrastructure bonds. Experience of Ghana and South

Africa can be sought.

(iii) MOID will come up with a shortlist of suitable transport projects for PPP and other Ministries

should do the same under the coordination of the Nucleus PPP Unit in MOFEP. This must

start immediately within the Ministries while waiting for the setting up of the PPP Unit.

(iv) Advertisements for PPP projects will be done by January 2009 so that the projects can be

incorporated in the FY2009/10 budget process.

The proposal for private sector participation in infrastructure development may not solve the immediate funding gap in FY2008/09 however the Ministry will make concerted efforts to ensure

that on-going road projects are fully funded in FY2008/09 while ensuring that alternative financing

modalities come into play in FY2009/10.



xvi

MONITORING AND EVALUATION

The Monitoring and Evaluation framework for the TSIP has been designed to be compliant with the

National Development Vision 2025. The benchmarks and indicators of TSIP are also based on those

of the vision 2025. Monitoring will be conducted to track progress of activities and achievements of

predetermined targets and provide an early warning when things go particularly bad. Evaluation will

be periodically carried out with a view of outlining the achievements, effects and impact of TSIP in

relation with poverty eradication and economic development.



1

CHAPTER 1

1.0 INTRODUCTION

1.1 Background

ransport is an important sector in the whole process of development and poverty alleviation. Its effectiveness, appropriateness and adequacy contribute a lot to the successful implementation of

socioeconomic activities. The impact of having such a transport system is lowering of domestic

production cost through timely delivery, enhancing economies of scale in the production process and

creating economic opportunities. The economic opportunities include ease of market access;

strengthening of competition; promotion of trade, tourism and foreign investment; contribution to

government revenue and generation of a large number of employment opportunities.

In spite of all the above, the transport sector in Tanzania is still characterized by high cost, low quality

of services due to various reasons including the existence of massive backlog of infrastructure maintenance and rehabilitation, inadequate capacity caused by low level of investment in resources,

and low level of enforcement of safety, environmental sustainability and gender issues. These

transport sector problems have by far impeded socio economic development and poverty reduction in

Tanzania.

It is the intention of the 4th Phase Government in Tanzania to ensure that transport sector plays its

rightful role of facilitating other socio economic sectors to attain their aspirations. The approach will

be done along the existing national strategic goals that will be addressed to ensure that:

• All the trunk roads are paved by 2018

• All Regional centers to be linked with paved roads and all district headquarters to be linked

with all weather roads of at least gravel standard by 2018.

• The railway network is effectively utilized in such a way that distance bulky goods are

carried by railways in a more cost effective way.

• All major airports are operating at international standards while the domestic ones remain

operational all year round.

• Private sector participation is enhanced in infrastructure investment

• Rural and Urban Accessibility are improved

• Transport safety & security are enhanced.

• Seaport capacity is expanded from the current 10,000 million tons to about 20,000 million

tons per year.

Previously, Tanzania has implemented a number of transport development and maintenance

programmes aimed at enhancing the provision of efficient, cost-effective and a safe transport system

in the country. These include Transport Sector Recovery Programme (1987), Integrated Roads Project

(IRP) Phase I and II (1991 - 2002), Railway Restructuring Project (RRP), Port Modernization Project

(PMP), the TAZARA Ten-Year Development Programme and the Phase One of the 10-Year Road

Sector Development Programme (2000 - 2005). Reforms have also been on-going with a view of

creating institutional arrangements, laws, regulation and procedures that are consistent and compatible

with each other to create a conducive climate for investment and hence growth of the sector. The

reforms include but are not limited to, formation of relevant regulatory authorities and operational

agencies, formation of executive agencies, privatization of operations that can best be done by the

private sector, and the recent merging of the then Ministry of Works (MoW) and that of

Communications and Transport (MCT) to form the Ministry of Infrastructure Development (MoID).

Now that all Transport sub sectors are under one roof, the Ministry of Infrastructure Development has

decided to have in place a Transport Sector Investment Programme (TSIP) for developing the

transport sector in a holistic manner. This programme is a continuation of previous programmes in the

T



2

transport sector the latest being the 10-Year Road Sector Development Programme (10-YRSDP). Studies have been undertaken during the past ten years aimed at identifying critical issues and hence

supporting the efforts to strategies and come up with plans that will bring quick impact to the sector

and to the economy in general. Some of the studies include:

(i) National Transport Sector Strategic Plan and Transport Infrastructure Master Plan Study for

Tanzania Mainland (2002)

(ii) Airport study (1999)

(iii) Establishment of a Land Transport Commission (2000)

(iv) Guidelines for Environmental Management, Design and Implementation of Transport Projects

(2001)

(v) Ten-Year Road Sector Development Programme (2002)

(vi) National Road Safety Master Plan Study (2004) and

(vii) Transport Sector Strategic Environmental Assessment study

Based on these studies and previous development and rehabilitation programmes, the main objective

of having the programme is to ensure that development of the sector is done in such a way as to

enable the sector to contribute effectively to the growth of the national economy and eradication of

poverty.

The TSIP is founded on the National Development Vision 2025 which takes into account the UN

Millennium Development Goals (MDGs). Further, TSIP is intended to provide a major input to the

National Strategy for Growth and Reduction of Poverty (NSGRP or MKUKUTA as it is popularly

known). In essence TSIP is an engine to implement the National Transport Policy (NTP) formulated

in 2003 and other national policies geared to improve the well being of the people.

The MKUKUTA identifies the poor state of the rural road network as one of the major constraints on

development and poverty reduction. However, the transport network operates as a system and not a

series of discrete elements. Therefore, improving access requires improving and maintaining physical

infrastructure at all levels of the network. Moreover, infrastructure without transport services does not

constitute an operational transport system nor does it lead to increased mobility. Attention has to be paid to promoting and facilitating transport services and different transport modes. Urban areas are

the dynamos of the country’s economy and generate the demand for goods from rural areas for

internal consumption and for export. A steep increase in traffic in urban areas is a sign of a growing

economy. However, high traffic congestion leads to economic inefficiencies that will eventually

constrain growth as well as producing undesirable externalities such as high pollution and increased

road traffic crashes. For this reason, achievement of the MKUKUTA goals requires a holistic

approach to transport infrastructure development that embraces all levels of the network for all

available modes of transport in urban and rural areas.

The MKUKUTA strategy is based on three clusters:

• Cluster I: Growth and the Reduction of Income Poverty

• Cluster II: Improvement of Quality of Life and Social Well-Being

• Cluster III: Governance and Accountability

Transport is primarily associated with Cluster I and Cluster II. However, transport is a facilitator for

many other sectors and activities; and as such it impacts on all Clusters and is an important element in

direct improvements in the livelihoods of all Tanzanians. The National Transport Policy (2003)

describes how all elements of the transport sector, including different modes of transport, will

contribute to the achievement of national social and economic goals. The vision of the Transport

Sector is to have ’Safe and efficient transport services for all’. Hence, the strategy will be to

enhance modal integration, development of transport corridors, and enhancement of multimodal transport system paying particular attention to issues of safety, environment and security.



3

Currently, transport services are provided at high freight and travel charges. Travel time is also high due to condition of the infrastructure, which in turn leads to high vehicle operating costs and high

accident rates. It has been estimated that vehicle operating costs in Tanzania are two to three times

those in developed countries. These challenges impede the role of transport sector of facilitating other

sectors to achieve their aspirations.

In view of these facts, there is a need for the transport sector to have an investment programme that

looks at the sector in a holistic manner in terms of transport infrastructure development and

maintenance. The immediate objective of the programme is to have in place a transport system that

facilitates other sectors to attain their aspirations. In the end the attainment of these aspirations will

lead to sector development and hence attainment of the MDGs, National Vision 2025, MKUKUTA

and the National Transport Policy’s objectives and goals.

TSIP will be implemented in two phases. The first phase has commenced in FY2007/08 and will end

in FY2011/12; and the second phase starts in FY2012/13 and ends in FY2016/17. The review of TSIP

which will be conducted into the fourth year of the programme will provide in more exact terms the

basis for the contents of the second phase of the programme. Detailed implementation of the TSIP is

provided in the Medium Term Expenditure Framework (MTEF) which is a three-year rolling plan.

1.2 TSIP Goals

The goals of this programme are to ensure that:

(i) Each fundamental element of transport has been provided in the appropriate quality, quantity

and form.

(ii) All elements of transport are combined in a technologically optimum way for each mode of

transport.

(iii) Each mode is operated in a most efficient way.

(iv) Appropriate mechanisms exist to ensure effective inter-modal coordination and

communication between the user, the operator, the regulatory agency and the government on

all transport questions and issues.

1.3 The TSIP Objectives

The objectives of TSIP are as follows:

(i) Develop adequate, reliable, cost effective, efficient, safe, environmentally friendly and

seamless transport infrastructure.

(ii) Facilitate the mobilization of local and international resources to speed up transport

infrastructure development in an integrated manner.

(iii) Enable the transport sector to contribute to the growth, leading to better distribution of income

and therefore to the struggle against poverty and hence achieve sustainable socio-economic

development and integration.

(iv) Foster and catalyze the involvement of public-private sector partnerships.

(v) Ensure gender mainstreaming in all issues related to the transport development.

(vi) Ensure that transport development takes on board issues related to the disadvantaged groups,

e.g. woman and children, physically disabled persons, rural communities, etc.

(vii) Enhance efficiency of transport services internationally, nationally and locally.

1.4 Preparation of TSIP

The Ministry of Infrastructure Development, working together with all the relevant stakeholders, has

prepared the TSIP. The stakeholders who have been directly and fully involved include: Prime

Minister’s Office Regional Administration and Local Governments (PMO-RALG); Transport

Agencies including: Tanzania National Roads Agency (TANROADS), Tanzania Ports Authority

(TPA), Tanzania Airports Authority (TAA), Tanzania Reli Asset holding company (RAHCO) &



4

Tanzania Railways Limited (TRL), Tanzania Zambia Railway Authority (TAZARA); the Roads Fund Board (RFB); Transport Regulatory Authorities such as the Tanzania Civil Aviation Authority

(TCAA), the Surface and Maritime Transport Regulatory Authority (SUMATRA); Contractors

Registration Board (CRB), National Construction Council (NCC), Engineers Registration Board

(ERB), Architects and Quantity Surveyors Registration Board (AQSRB); transport facilitation

agencies like the Tanzania Meteorology Authority (TMA); and Training institutions, which are;

National Institute of Transport (NIT), Dar-es-Salaam Maritime Institute (DMI), Morogoro Works

Training Institute, Kigoma Meteorology College, Mbeya Appropriate Technology Institute, Tabora Railway College and Civil Aviation Training College.

The Development Partners have given their input into TSIP through the Forum and the Joint

Technical Committee, and the Private sector has also been involved through workshops and/or one to

one discussions and dialogue. Various inputs have also been collected from other ministries including

Ministry of Energy & Minerals, Ministry of Agriculture, Food and Cooperatives, Ministry of Natural

Resources and Tourism, Ministry of Public Safety, Ministry of Finance, Ministry of Planning,

Economy and Empowerment (MPEE), and the Vice President’s Office, etc.

1.5 Structure

This document has been organized into 8 Chapters. Chapter 1 presents an Introduction; while chapter

2 highlights on the Tanzania Profile and Economic Background; Chapter 3 deals with the Transport

Policy Framework while Chapter 4 discusses the National Transport System; Chapter 5 is on

Institutional Reforms and major Stakeholders in the Transport sector, while Chapter 6 discusses

Transport Sector Performance review (FY2001/02 – FY2005/06). Chapter 7 summarizes the Ten-year

Transport Sector Investment Programme Phase 1 (FY2007/08 – FY2011/12). Monitoring and

Evaluation has been summarized in Chapter 8. Also, included are Annexes which provide details of Proposed Projects for TSIP implementation in Phase 1 and Lists of Important Stakeholders in the

transport sector.



5

CHAPTER 2

2.0 ECONOMIC BACKGROUND AND PROFILE OF TANZANIA

2.1 Geographical Location and Natural Condition

anzania lies between latitude 1oS and 11

oS and longitude 29

oE and 41

oE. It is bordered by the

Indian Ocean to the East, Kenya to the North, Uganda to the North West, Malawi, Zambia and

Mozambique to the South, Democratic Republic of Congo, Rwanda and Burundi to the West (Map

2.1). It has a total area of 945,087 km2 of which 6.3% is water and 93.7% is land. Arable land

accounts for 46% of the total land area while the land under permanent cultivation is just above 10%

of the total land with irrigated land at 1550 km2 (0.2%).

Map 2.1: Tanzania

Source: MID

The Tanzanian population is now estimated at about 38 million people. The population has been

growing at an average rate of 2.65%. In addition, Tanzania is an important transit gateway for six

landlocked countries of Southern and Central Africa namely Malawi, Zambia, Democratic Republic

of Congo (DRC), Burundi, Rwanda and Uganda. This is due to the country being bordered by sea with a coast line of over 700 Km long with import sea ports of Dar es Salaam (the major port), Tanga

T



6

and Mtwara. In serving as a transit country, Tanzania implements the international convention that requires countries with sea to allow land locked countries to use sea ports for importation and

exportation of goods.

2.2 The Economy

Tanzania's economy has generally been growing relatively rapidly in recent years with substantial

improvement being made in sustaining macroeconomic stability following successful implementation

of substantial economic reforms. There has bee a steady growth of GDP between 2000 and 2005. The

country’s average GDP annual growth rate for the period 2000 to 2006 was 6.0%. In 2006, the GDP

grew 6.2% compared to 4.8% in 2000 (Table 2.1).

Table 2.1: Real Growth for Various Key Sectors

GROWTH SECTOR

2000 2001 2002 2003 2004 2005 2006

Agriculture 3.4 5.5 5.0 4.0 5.8 5.1 4.1

Mining 10.9 16.6 15.0 18.0 15.4 15.7 16.4

Manufacturing 4.8 5.0 8.0 8.6 8.6 9.0 8.6

Electricity and Water 5.9 3.0 3.1 4.9 4.5 5.1 -1.8

Construction 8.4 8.7 11.0 11.0 10.8 10.3 10.0

Wholesale and Retail Trade 6.5 6.7 7.0 6.5 7.8 8.2 8.4

Transport and Communications 6.1 6.3 6.4 5.0 6.0 6.4 7.5

Finance, Insurance, etc 4.7 3.3 4.8 4.4 4.4 5.3 5.5

Public Administration 3.6 3.5 4.1 4.1 4.3 5.1 5.1

Less Financial Services

Indirectly Measured

1.4 2.5 2.8 3.5 8.0 4.9 5.6

GDP 4.8 5.8 6.2 5.7 6.7 6.9 6.2 Source: National Bureau of Statistics

On average, GDP has been increasing for the past six years and it is expected to go further up and

reach 7.5% in 2008. The increase will be due to improvements in the performance of the productive

and service sectors e.g. agriculture, manufacturing, mining, tourism and trade. Service sectors are also

expected to grow. Specifically transport sector growth rate has been fairly constant at around 6.2%.

The goal is to reach 10% annually by 2009 and further up to 12% by 2011. Faster growth of the

transport sector is highly desirable so that it can cope with demand exerted by growth upsurge in other

sectors. This will enable meeting the aspiration of the 4th Phase Government of having a transport

sector that adequately supports other socio economic sectors to meet their aspirations leading to

growth and thus attain poverty reduction strategies set in the MKUKUTA.

Fiscal performance, which ensures macroeconomic stability and high growth, has significantly

improved. Inflation went down from 16.1% in 1997 to manageable annual average of less than 5.0%

in 2005. The level of foreign exchange reserves exceeded the projected level of 4 months of imports

of goods and services reaching 9 months worth of imports in 2005.



7

CHAPTER 3

3.0 TRANSPORT POLICY FRAMEWORK

3.1 Transport Sector Vision

The Vision of the Transport sector is to have safe and efficient transport services for all.

3.2 Transport Sector Mission

The Mission is to provide reliable and fully integrated transport infrastructure and operations which

will best meet the needs of travel and transport at improving levels of service at lower costs in a

manner, which supports government strategies for socio economic development whilst being economically and environmentally sustainable.

3.3 The National Transport Policy and Implementation Strategies

The National Transport Policy (NTP) was formally approved by the government in year 2003. Having

approved the NTP, the Government embarked on preparing the Policy Implementation Strategies to

translate the policy guidelines into time bound actions and activities. The objectives of the Strategy,

among other things, are to ensure optimal use of resources by investing in improved infrastructure in

all modes of transport; promote modal efficiency; enhance competition, recover some of the cost from

the users and support the overall socio economic development in a most cost effective manner.

In order to come up with a policy framework to guide the planning, management, operations and

monitoring of the transport sector, various studies and evaluations of the sector have been undertaken

(Section 1.1). These studies formed the basis of formulating the NTP, its Implementation Strategies

and the TSIP.

Considering the above facts, the government is committed to putting in place and reviewing policies,

strategic goals, monitoring and evaluation of sector performance, legislative issues and all aspects of good governance. The government is also committed to ensuring that infrastructure issues are

overseen largely by the government. On the other hand, regulatory issues are now handled by the

government at arms length largely through autonomous executive agencies while service provision is

handled to a large extent by operational public or private institutions. Commercially oriented

institutions, including public private sector partnership (PPP) handle most operations or services

provisions which have commercial sense.

The main goal of NTP is to facilitate the achievement of the National Development Vision 2025, the

2015 UN Millennium Development Goals, and the goals of the National Strategy for Growth and

Reduction of Poverty. This facilitation requires the streamlining of the NTP with the other national

and international policies. The implementation of the TSIP is taking on board the requirements and

aspirations of both national and international policies. Successful implementation of TSIP projects in

the identified area of focus will enable the policy guidelines stipulated in the NTP to become

operational.

3.4 Joint Assistance Strategy

The Joint Assistance Strategy for Tanzania (JAST) is a national medium-term framework for

managing development co-operation between the Government of the United Republic of Tanzania

(Government), and Development Partners (DPs) so as to achieve national development and poverty

reduction goals. It also outlines the role of non-state actors to the extent that they contribute to the

successful implementation of the Strategy. The overall objective of the JAST is to contribute to

sustainable development and poverty reduction in line with the National Development Vision 2025 by

consolidating and coordinating Government efforts and Development Partners’ support under a single

Government-led framework to achieve results on the National Strategy for Growth and Reduction of

Poverty.



8

The JAST has been formulated in the spirit of national and international commitments and initiatives on aid effectiveness. It spans a renewable cycle of five years and outlines the main objectives,

principles and broad arrangements of Tanzania’s development partnership. It is complemented by an

Action Plan that specifies concrete activities and time-frames for implementing JAST and a

monitoring framework with indicators to measure Government and Development Partner

performance.

As the overarching strategy for guiding the use of external resources to support the implementation of

the MKUKUTA, the JAST promotes the strengthening of underlying sector processes through

effective participation in dialogue by all stakeholders whereby relevant Government, Development

Partner and non-state actor stakeholders are expected to participate in sector dialogue especially by

using Sector-Wide Approaches (SWAPs).

SWAPs are instruments for organising sector dialogue around strategic issues and overall policy

directions rather than for deciding on the provision of funding. Stakeholders engage in transparent and

timely sector dialogue, particularly for scrutinising spending plans, assessing performance in

implementing sector policies, strategies and plans, the effectiveness of budgeting and execution and

its link to the MKUKUTA as well as linkages with other sectors, and for informing decision-making

at sector level. The sector reviews consider the effectiveness of Development Partner supported

programmes and projects in contributing to MKUKUTA outcomes.

Outputs of sector dialogue feed into cluster and national processes (e.g. MKUKUTA National Budget

/ Public Expenditure Review (PER), and General Budget Support (GBS) review. Their timing and

scope will therefore be aligned to these processes. Although JAST will guide overall sector-level

dialogue improvement, specific actions to enhance dialogue will be decided by each sector, reflecting

different degrees of maturity in terms of capacity and institutional setup.

3.5 Joint Infrastructure (Transport & Communications) Sector Review (JISR)

In pursuit of SWAP, the Ministry of Infrastructure Development held its first Joint Infrastructure

Review in the areas of Transport and Communications in October, 2007. Outputs of the JISR were

valuable inputs for feeding into MKUKUTA Cluster 1 GBS Review which was held later in

October/November 2007.

3.6 Sector Wide Approach (SWAPs)

Various efforts will be made to practice SWAPs in the transport sector. The approach will include the effective means to enable Transport sector strategy derived from the existing National Transport

Policy as well as putting in place sustainable mechanisms for the Government-led donor coordination.

On one hand, the Joint Technical Committee (JTC) will continue to be used as a team of experts from

the two sides to advise the sector on sector reforms and other important issues impacting

implementation of the TSIP. On the other hand, a reliable transport sector performance monitoring

indicator framework for the transport sector has been developed to link with the National Strategy for

Growth and Reduction of Poverty (NSGRP) or MKUKUTA.

3.7 PPP Policy and Institutional and Regulatory Framework

In order to involve non-state actors (private sector and civil society) in participating in transport sector

investment, Government is making concerted efforts to put in place a PPP policy, institutional and

regulatory framework by December 2008. The Government through MoID undertook a study on the

framework for PPPs in the road sector and through the study, opportunity areas for PPP investments

in the road sector have been proposed. While the opportunities for PPP in the road sector currently

appear to be limited, prospects exist in other transport sub-sectors. It is the intention of the

government to effectively involve private sector in the execution of the infrastructure development

projects.



9

CHAPTER 4

4.0 THE NATIONAL TRANSPORT SYSTEM

he current Tanzanian transport system consists of road, rail, air, water and pipeline modes.

According to the Economic Survey of 2006, the Transport & Communications sector contributed

5.4% to the GDP while the construction sector contributed 5.8%.

4.1 Road Transport

Tanzania has presently an estimated total road network length of 85,000 km. Out of the total road

network, the urban, district and feeder roads with a total length of 56,625 km are under jurisdiction of

PMO -RALG.

The Ministry of Infrastructure Development through TANROADS is responsible for administration

and management of the trunk and regional roads network. The length of the road network under the

jurisdiction of MoID is 28,892 km. of which trunk roads amounts to 9,934 km and regional roads

amounts to 18,958 km. PMO-RALG has carried out an inventory and condition survey of its road

network known as ‘Local Government Road Inventory and conditions survey (LG-RICS)’. The field

work was completed in November 2006.

The Tables 4.1 and 4.2 show the lengths of the different classes of roads and their conditions.

Table 4.1: Condition of Trunk and Regional Roads (June 2007)

Road Type Good (km) Fair (km) Poor (km) Total

Trunk

-Paved

-Unpaved

Sub-Total

2,739.64 (70%)

1,926.58 (32%)

4,666.22 (47%)

900.17 (23%)

2,492.51 (41%)

3,392.68 (34%)

273.96 (7%)

1,589.43 (26%)

1,863.39 (19%)

3,913.77 (100%)

6,020.56 (100%)

9,934.33 (100%)

Regional Roads

-Paved

-Unpaved

Sub-Total

278.33 (85%)

7,079.38 (38%)

7,357.71 (39%)

40.93 (13%)

7,191.16 (39%)

7,232.09 (38%)

6.55 (2%)

4,284.89 (23%)

4,291.44 (23%)

327.45 (100%)

18,629.94 (100%)

18,957.39 (100%)

Total

12,023.93 (42%)

10,624.77 (37%)

6,154.83 (21%)

28,891.72 (100%) Source: TANROADS

Table 4.2: Condition of Local Government Roads (LG-RICS, November 2006) Good Condition Fair Condition Poor Condition Bad Condition Road Type

Km % Km % Km % Km % Total

(Km) District Roads 4,723 16.0 13,944 47.2 8,187 27.7 2,682 9.1 29,536

Feeder Roads 2,100 9.9 7,334 34.6 8,395 39.6 3,362 15.9 21,191

Urban Roads 1,084 18.4 2,056 34.9 2,101 35.6 657 11.1 5,898

Total 7,907 14.0 23,334 41.2 18,683 33.0 6,701 11.8 56,625

Surface type: Earth 46,410km (82.0%), Gravel 9,425km (16.6%) and Paved/Sealed 790km (1.4%) Source: PMO-RALG

From the Tables 4.1 & 4.2 above, it is seen that:

• The total trunk and regional road network that is in good and fair condition (which means

maintainable) is about 22,648.7 km (78.4%).

• 31,241 km (55.2%) of the road network under the responsibility of the local governments is in

good and fair condition i.e. maintainable condition.

T



10

The road network density in Tanzania is 96.5 meters per square km (or 5.0 meters per square km for paved roads). Similar statistics for other East African Community member states are shown in Table

4.3.

Table 4.3: Summary of Road Densities in Kenya, Uganda and Tanzania

Country Particular Measurement

Total Area (sq. km) 582,648

Entire Network (m per sq. km) 261.9

Kenya

Paved Network (m per sq. km) 15.2



Uganda

Paved Network (m per sq. km) Not Known



Tanzania

(Mainland)

Paved Network (m per sq. km) 5.0 Source: MoID

According to Table 4.3, Tanzania has the lowest road density compared to the other two states of

Kenya and Uganda. This means a large part of Tanzania is inaccessible. The inaccessibility,

especially in the rural areas, makes travel cumbersome and expensive.

In line with the Traffic Count Survey carried out in year 2004 on trunk and regional roads, more

traffic is concentrated on paved roads and highest traffic volume is in Dar es Salaam (Map 4.1). The

corridors with largest traffic levels are TANZAM and North Eastern Corridor. The AADT on

TANZAM corridor ranges from more than 15,000 (Dar es Salaam – Kibaha section) to 700 (on Halali

-Iyayi section) and traffic on North Eastern corridor range from, 1,000 to 5,000 AADT. The Central

corridors have traffic volume ranging from 115 (Nzega- Bukoba) to 7,000 (on Morogoro – Wami

section) AADT whereas the Lake circuit corridor has traffic volume ranging from 200 to 3,000

AADT. The Great North, Western, Midwest and Southern corridors have much lower traffic, ranging

from 100 to 150 AADT.

Road traffic crashes are of great concern to the Government. The national figures show a high

number of road traffic crashes and casualties. The number of road traffic crashes reported has

increased from 7,850 in 1975 to 16,664 crashes in the year 2003 out of which 1788 crashes resulted

into 2,155 deaths. Statistics for 2004 also shows that accidents and the number of killed and injured person increased by 7-11%.

To address the road safety issues, the National Road Safety Master Plan for 5 years and an Action

Plan of the first three years have been prepared. A National Road Safety Policy and its

Implementation Strategies have also been prepared. The necessary approval of legal framework to

establish meaningful road safety management capacity in Tanzania is in progress.



11

Map 4.1: Traffic Volume for Tanzania Mainland (2004)

4.2 Railway Transport

Tanzania Railways systems have a total track length of 3,676 km out of which 2,701 km were

operated by Tanzania Railways Corporation (TRC) until August 2007 and now owned by Rail Asset

Holding Company and operated by Tanzania Railways Limited. The remaining 975 km are operated

by the Tanzania - Zambia Railway Authority. The two railways systems link 14 of the 22 regions on

the mainland.

The present system (Map 4.2) was planned in such a way that it stretches from East to West. For

instance the central line connects Mwanza on Lake Victoria and Kigoma on Lake Tanganyika through

Tabora and Dodoma to Dar es Salaam. The Tanga line stretches to Moshi and Arusha. The two lines

are connected to each other by a link line at Ruvu on the Central Line and Mnyusi on the Tanga line.

As is the case with the Central line, the TAZARA line stretches from the port of Dar es Salaam to

Mbeya in the south west on onwards to Kapiri Mposhi in Zambia.

Apart from the TAZARA system which was constructed in the 1970s most of the Tanzania railway

system was constructed at the beginning of the last century; and since then no substantial



12

modernization has been done. The gauge is narrow, i.e. 100 cm which is the cause for speed limitations and is prone to accidents. Procurement of parts and equipment is also cumbersome due to

the fact that no such parts can be procured off shelve because they are not compatible with those of

existing modern systems in the world.

The importance of transportation by rail need not be emphasized. Unfortunately very few areas of the

country are served by the railway system. The Southern, Western and North Western parts of the

country are not served by any railways system. The main challenging areas in as far as railways are

concerned include the narrow gauge, speed limitations, long travel time, poor state of wagons and

locomotives, land slides and wash away of some rail sections by floods, and very low level of

capitalization.

4.2.1 Rail Asset Holding Company (RAHCO)

The RAHCO railway has a design capacity of carrying 5 million tonnes of freight per annum.

RAHCO network has a gauge of 1,000 mm and consists basically of two main lines: the Central line

running from Dar es Salaam to Tabora (840 km) and from Tabora to Kigoma (411 km) and a major

branch from Tabora to Mwanza (378 km). The Tanga line which starts from Tanga to Moshi and

Arusha has a total length of 438 km. The two lines are connected by a link line between the Ruvu

Junction Station on the Central line and Mnyuzi Junction on the Tanga line (188 km). Also, the system has four branch lines i.e. Kilosa-Kidatu (107 km), Kaliua-Mpanda (214 km), Manyoni-Singida

(115 km), and Kahe-Border (16 km).

The Tanzania Railway Limited, the operator for RAHCO has holding fleet of 120 diesel locomotives,

out of which 85 are operational. 103 locomotives, that is almost 84% are older than 20 years. The

wagon holding fleet is 1,847 of which 1514 wagons are older than 20 years. The wagon fleet has 888

covered wagons; 216 tanks; and 188 containers. The locomotive and wagon availability is between

70-75 percent.



13

Map 4.2: The Railway Network

A= Central Line

B= Tanga Line

C = Link Line

D=Mwanza Line

E=Mpanda Line

F = Singida Line

G = Kidatu Line

Source: MID

4.2.2 Tanzania Zambia Railway Authority (TAZARA)

The Tanzania-Zambia Railway Authority (TAZARA) operates a railway line between the port of Dar

es Salaam and New Kapiri Mposhi in Zambia over a distance of 1860 km of which 975 km are on the

Tanzanian territory. TAZARA has a gauge of 1,067 mm, which conforms to other Central and Southern African railway networks. The railway has a design capacity of carrying 5.0 million tonnes

of freight per annum, i.e. 2.5 million tonnes in each direction, and 3.0 million passengers per annum.

The rolling stock of TAZARA consists of 22 serviceable mainline locomotives, of which 17 can be

considered as operational fleet. TAZARA has 1,500 wagons of which average of 1,200 are

operational. Also, TAZARA has 128 passenger coaches of which 70 are operational. The locomotives

and wagons availability is about 50 percent and 65% respectively.

4.3 Maritime and Inland Waterways

Tanzania maritime transport is concentrated at the major sea ports, which are Dar es Salaam, Tanga

and Mtwara managed and operated by Tanzania Ports Authority (TPA) and Inland water transport

with ports in Lakes Victoria, Tanganyika and Nyasa managed by Marine Service Company Ltd (Map

4.3). Smaller ports are Kilwa, Lindi, Mafia, Pangani and Bagamoyo. The total traffic handled at the

major three ports has been increasing on average of 8% annually from 4.684 million tons of cargo

handled in 2001 to 7.291 million tons handled in 2006 (Table 4.4). Inland shipping is currently undertaken on Lakes Victoria, Tanganyika and Nyasa. The major ports are Mwanza, Bukoba and

Musoma on Lake Victoria, Kigoma on Lake Tanganyika and Itungi in Lake Nyasa.

Makambako

Mtwara

Musoma

Sumbawanga

Kigali



14

Map 4.3: Sea and Inland Ports

Source: TPA

Table 4.4: TPA Port Throughput 2001 - 2006 (‘000 DWT)

2001 2002 2003 2004 2005 2006

Imports 3,684 3,809 4,242 4,958 5,067 5,548

Exports 907 993 1,158 1,214 1,322 1,314

Transshipment & Bunkers 93 169 245 375 404 428

Grand Total 4,684 4,972 5,646 6,548 6,794 7,291 Source: TPA

The Port of Dar es Salaam has 11 berths and a total quay length of 2,000 m. The total capacity is 3.1

million tons of break bulk; 6 million DWT of bulk liquid capacity and 250,000 TEU at the container

terminal. The crude pumping capacity is 5,000 tons/hour and the pumping capacity for refined

products 600 tons/hour. The storage capacity of the grain terminal is 30,000 tons.

The port of Tanga has a rated capacity to handle 500,000 tons of general cargo per year, and the total

capacity of the port of Mtwara is 400,000 tons.

Inland waterways shipping services are currently undertaken on Lakes Victoria, Tanganyika and

Nyasa. The major ports are Mwanza, Bukoba and Musoma on Lake Victoria; Kigoma on Lake

Tanganyika; and Itungi on Lake Nyasa. A government owned Marine Service Company (due for

privatization in the near future) and private operators render marine service on the three lakes. On

Lake Victoria, international services are provided by rail ferry. There is also significant informal

coastal shipping around the Lake.

Key

Sea Ports

Inland Ports



15

4.4 Air Transport

Tanzania has a total of 368 aerodromes which are owned, managed and operated by different entities.

Tanzania Airport Authority (TAA) owns, manages, operates and develops 62 airports. There are four

International Airports namely; Mwalimu Julius Kambarage Nyerere, Kilimanjaro, Zanzibar and

Mwanza. Out of four International Airports, two of them have been managed by TAA; namely Mwl.

J. K. Nyerere and Mwanza International Airports. Zanzibar International Airports is being managed

by The Revolutionary Government of Zanzibar. KIA was leased by to a private operator since 1998.

Map 4.4 overleaf indicates existing international and domestic airports in Tanzania.

The Tanzania Airports Authority (TAA) distinguishes four types of airports:

(i) International airports: Mwalimu J. K. Nyerere, Kilimanjaro, Zanzibar and Mwanza

(ii) Strategic airports: Arusha, Lake Manyara, Mafia and Ngara.

(iii) Major Domestic airports:, Mtwara, Dodoma, Kigoma, Tabora, Mbeya, Songwe, Songea,

Lindi, Shinyanga, Musoma, Bukoba, Sumbawanga, Tanga and Lake Manyara.

(iv) Small airports.

The condition of basic airport infrastructures (runways, aprons and taxiways) for most of the airports

in Tanzania is very poor., With exception of 3-International airports and 8-major region airports

which have asphalt surfaces, the rest of airports have gravel and grass runways. As a result, safe

accessibility is only during dry seasons. It’s only the 3-international airports and Mwanza airport which have airfield ground lighting system that allow for 24 hour airport operations. Table 4.5

outlines the physical condition of airport infrastructure.

4.5 Pipeline Transport

There are only two functional long distance pipelines in the country.

• The TAZAMA pipeline which transports crude oil from Dar es Salaam to Ndola refinery

terminal in Zambia, a distance of 1,750 km.

• The pipeline that transports gas from Songo-Songo Island to Dar es Salaam with a

distance of 232 Km. the pipeline is owned by SONGAS.

4.6 Development Corridors

A Development Corridor is a concept founded in the idea of Spatial Development Initiative (SDI)

intended to attract export driven investments and stimulate public/private partnership to areas with

under or unutilized potential. It considers all potentials for multi-sectoral integrated development built

around a backbone transport infrastructure linking the region to gateway for international trade. It

recognizes the inter-dependence of various sectors, facilitates easier and faster decision making, and

provides very good approaches and mechanisms for packaging of development programmes.

Development of transport corridors has been one of the main strategies adopted by the Government

towards the facilitation of the transit trade and ultimately implementation of Almaty Declaration and

Programme of Action.



16

Map 4.4: Existing Domestic and International Airports

Source: Tanzania Airport Authority

Domestic and International Airports



17

Table 4.5: Physical Condition of Existing Airport Infrastructure

SN Name of Airport Runway dimensions Surface type and

condition

Pavement

strength

1 Mwl. J. K. Nyerere International 3000mx46m Bitumen(Excl) PCN 60

2 Kilimanjaro International 3607mx45m Bitumen(VG) PCN60

3 Zanzibar International 2462mx45m Bitumen(P) PCN 42

4 Mwanza 3300mx45m Bitumen(VG) PCN 60

5 Mtwara 2258mx30m Bitumen(G) PCN32

6 Dodoma 2042mx30m Bitumen(P) PCN15

7 Tanga 1268mx31m Bitumen(P) PCN15

8 Moshi 1480mx30 Bitumen(VP) Not available

9 Kigoma 1767mx30m Gravel (G) PCN15

10 Tabora 1786mx46m Gravel (G) PCN32

11 Bukoba 1058mx28m Gravel (G) 5700kg

12 Musoma 1600mx33m Gravel (G) PCN15

13 Shinyanga 2000mx30m Gravel (P) 5700kg

14 Mafia Island 1600mx30m Gravel (VP) Not available

15 Lake Manyara 1220mx21m Gravel (P) 5700kg

16 Singida 1070mx70m Glass (P) 1800kg

17 Mbeya 1500mx30m Glass (G) 16970kg

Source: TAA

Note: Pavement Condition defined as:

Excl - Excellent VG - Very Good

G - Good

P - Poor

VP - Very Poor

PCN - Pavement Classification Number

Tanzania serves as a transit country for import and export of Malawi, Zambia, DR Congo, Burundi,

Rwanda and Uganda, using the port of Dar es Salaam. The main rail and road connections in Tanzania

are, therefore, in east-west direction linking the ports with the hinterland in those neighbouring countries.

Tanzania is paying much attention to the development corridors concept in its development policy

efforts by concentrating efforts in the Mtwara Corridor, Dar-es-Salaam Corridor, the Central Corridor

and the Tanga Corridor. The important challenge is to link import, export and transit traffic from and

to neighbouring countries with transport development efforts. Routing transit traffic through

Tanzanian should be seen to be an integral part of the national and regional socio-economic

development and integration efforts. Map 4.5 showing the brief highlight of the various development

corridors.



18

Map 4.5: Development Corridors

Source: MID

Key:

Central corridor DSM corridor

Tanga corridor Mtwara Corridor



19

4.6.1 Dar-es-Salaam Development Corridor

The Dar es Salaam corridor, which is sometimes referred to as the TAZARA Corridor, connects the

Dar es Salaam Port with Southern and Eastern highland through the TAZARA railway and the Dar es

Salaam -Tunduma Highway.

The Corridor offers the shortest distance between the port of Dar es Salaam, Zambia, Malawi and the

Southern parts of Tanzania. The Corridor faces stiff competition from Mozambican and South

African Ports in handling traffic to and from Malawi, Zambia and DRC. During the last 10 years,

fundamental political and economic changes have taken place in countries served by Dar-es-Salaam

corridor. For instance end of civil wars in Mozambique and DRC have made freighters to have more

route options than before. Today most of Malawi traffic is going through Mozambique ports.

Major constraints facing the Corridor include:

• General deterioration in the performance of TAZARA permanent way (track), signaling and

telecommunication system, locomotives, wagons and other operating equipment. These are in

very bad state, hence there is a need for rehabilitation or replacement

• Delays due to port cargo clearance resulting from poor over land transportation system

contributed especially by the poor performance of TAZARA. Long transit and turn round

time due to shortage of equipments, i.e. locomotives and wagons

• Inadequate return cargo due to unbalanced trade pattern between imports and exports from the

south.

• Inadequate facilities of transshipment of interface points.

The potentials of the Dar es Salaam corridor are numerous. The land along the Dar es Salaam corridor is the leading producer of maize which is the leading food crop. Other agricultural products include

tea, coffee, pyrethrum and forestry products. Industrial activities include cement, beverages and

vegetables and fruits canning. As hinted, this corridor provides the shortest transit route for Zambia

and Malawi. Investments to tap the potentials of the corridors are desired.

However the importance of this corridor at regional level is in the packaging of both infrastructure

and economic projects to make them viable for attracting direct foreign investments.

4.6.2 Central Development Corridor

The Central Corridor originates from the Port of Dar es Salaam and takes the central line route

extending to eastern DRC, Burundi via Kigoma on Lake Tanganyika to Rwanda via Isaka Dry Port and to Uganda via Mwanza on Lake Victoria. The corridor offers the shortest distances between the

Port of Dar es Salaam and the land locked countries as follows:-

• Dar – Kigoma – Bujumbura; Road/Rail and Lake: 1,436 km

• Dar – Kigoma – Kalemie; Road/Rail and Lake: 1,374 km

• Dar – Isaka – Kigali; Rail and Road 1,463 km

• Dar – Mwanza – Portbell; Rail and Lake 1,581 km

The major constraints facing the corridor are:

• Poor condition of the infrastructure for both rail and road

• Delays to cargo off take especially at the port of Dar es Salaam due to shortage of wagons

and low availability of locomotives.

• Delays to cargo clearance at the port of Dar es Salaam due to incompetence of some Clearing

and Forwarding Agents and documentations procedures

• Lack of navigational aids on the lakes (Tanganyika and Victoria) resulting in unsafe

operations

• Silting of Lake Victoria at Mwanza and Tanganyika at Kigoma and Kalemie.



20

• Damaged rail and bridges of the Congo Railways (SNCC) on East DRC.

• Poor condition of the road between Rusumo and Kigali in Rwanda

• Untimely follow up of the issue of the Corridors agreed at bilateral meetings

Through the established Central Development Corridor Bilateral Agreement, a permanent office has

been set up based in Kigali, Rwanda, a situation that haunted implementation of decisions relating to

the Corridor development.

4.6.3 Tanga Development Corridor

The corridor has great potential to serve the Lake Victoria regions as well as Uganda, Burundi and

Rwanda using the Tanga port. Projects which need to be implemented to remove critical bottlenecks

along this corridor include; the development of new deep water port at Tanga and construction of

Tanga, Musoma - Railway. There are high agricultural potentials, tourist attractions, mineral deposits

which make investment in transport infrastructure such as railway line, economically very viable. At

the moment there is a railway line joining Tanga with Arusha. There is a good tarmac road stretching

from Tanga to Arusha, Makuyuni to Ngorongoro gate. There are also the airports at Tanga,

Kilimanjaro, Arusha, Moshi, Lake Manyara and Musoma.

Specifically the constraints which need to be addressed during the implementation of TSIP include:

• Absence of deep water berth at Tanga port

• Absence of a railway stretch linking Arusha with Uganda, Rwanda and Burundi.

• Environmental concerns for the possible railway alignment between Arusha and Musoma.

• Absence of funds for conducting a study to determine socio-economic and environmental

viability. The airports along the corridor i.e. Arusha, Musoma and Bukoba which need a lot of improvement.

4.6.4 Mtwara Development Corridor

This is one of the corridors identified to serve SADC countries, namely northern Malawi,

Mozambique and North-Eastern Zambia under the Spatial Development Initiatives (SDI). Port

development, road and rail construction are critical components for the corridor potential exploitation

Specific constraints which will be addressed under the TSIP include:

• Limited Mtwara Port capacity

• Absence of both rail and road network linking the port to the hinterland.

• Mbamba Bay port which need to be developed to allow for transit traffic from Mkata Bay in

Malawi, to Mtwara and to overseas

• Improved infrastructure between the Southern regions of Tanzania and Mozambique through

the Unity Bridge to enhance trade and also to boost the Mtwara port throughput.

Lead projects which are being packaged under the Mtwara Development Corridor include both of

infrastructure and economic nature. Infrastructure projects include:

• Mtwara – Mbamva Bay road;

• Unity bridge and access roads;

• Kilambo – Namoto Ferry plus access roads;

• Revitalisation of Lake transport;

• Chuchuma Coal and Power project;

• Kiwira (TZ) and Karonga (Malawi) Inter connectors

Economic projects whose exploration will depend on infrastructure being in place include:



21

• Coal exploration;

• Iron ore exploration;

• Mtwara gas and industry platform

• Tourism; and

• Industry and fisheries

4.7 Road Transport Corridors

For reasons of opening up the country and enhancing integration there are nine (9) road transport

corridors. The road transport corridors embrace a total road network of about 10,300 km, 40% of which is bituminized. The challenge behind is to bituminize the remaining 60% of the road network

on the corridors. The existing road transport corridors include:

(i) TANZAM corridor: Dar es Salaam - Morogoro - Mikumi (with a link to Ifakara and

Mahenge) - Iringa - Mafinga (with a link to Mgololo) - Makambako - Mbeya (with a link to

Itungi Port and Malawi) – Tunduma (1324 km). This corridor facilitates agriculture, tourism,

mining and trade. It is alos a gateway for the land locked countries of Zambia, Malawi and

Eastern Congo

(ii) North East corridor: Chalinze – Tanga/Moshi – Arusha/Himo – Marangu – Tarakea/Taveta

(955 km).This corridor facilitates production of both subsistence and cash crops, promotion of

tourism and mining. This corridor links Tanzania and Kenya.

(iii) Southern coastal corridor: Dar es Salaam – Kibiti - Lindi – Mingoyo (508km). Improvement

of the road infrastructure of this corridor would promote economic activities in the southern

part of Tanzania and is an important regional link to Mozanbique.

(iv) Central corridor: Morogoro - Dodoma - Mwanza (on Lake Corridor) - Rusumo (Rwanda

border) and Kobero (Burundi border) in the West (1584 km). This corridor serves the designated national capital of Dodoma, the central and western regions of the country and

serves the land locked countries of Rwanda, Burundi and to some extent Uganda. facilitates

extensive farming and mining.

(v) Lake circuit corridor: Sirari (Kenyan border) - Musoma - Mwanza – Bukoba - Mutukula

(border with Uganda) (1019 km). The lake circuit corridor serves manufacturing and

processing industries and promotes agriculture, mining, tourism, fishing and trade. It is an

important link to the East African partner states of Kenya nad Uganda..

(vi) Southern corridor: Mtwara – Mingoyo – Masasi – Tunduru - Mbamba Bay on Lake Nyasa

(1,024 km). The corridor promotes agricultural production including livestock and fishing,

mining, and trade. This is a new corridor that has high potential as it links the Mtwara port to

the yet unexploited steel and coal mines of Liganga and Mchuchuma in the southern

highlands. It is also a potential gateway for Malawi and Zambia through Mbamba Bay (Lake

Nyasa).

(vii) Great north corridor: Iringa - Arusha – Namanga (1067 km). The northern corridor serves

agricultural schemes, mining and tourism. This is part of the historic Great North Road

linking Cairo and Cape Town, and has been heralded as an important link of the Trans-

African highways.

(viii) Western corridor: Tunduma – Sumbawanga – Mpanda – Kigoma - Nyakanazi (1286km).

Economic activities along this corridor include agriculture, tourism, mining,

timberworks, fishing and gold smiting.

(ix) Central Western corridor: Mbeya – Rungwe – Ipole – Tabora up to Nzega (1,201Km).

Possible Development activities are forestry, tourism and mining.

The challenge is to see to it that there is smooth traffic flow along the nine corridors. During the ten

years of the programme all the road sections in the corridors will have to be upgraded to paved

standards, which is an important pre condition for unlocking the economic potentials in various parts

of the country.



22

CHAPTER 5

5.0 INSTITUTIONAL REFORMS AND MAJOR STAKEHOLDERS IN THE

TRANSPORT SECTOR

5.1 Institutional Reforms

n a bid to contain the economic decline experienced in the 1970s and early 1980s, the Tanzanian

government introduced several programs including the Structural Adjustment Program (SAP – 1980-1985), and Economic Recovery Program (ERP) from 1986. In the Transport sector, programs

such as Integrated Roads Project (IRP), the Railway Restructuring Project (RRP), the Port

Modernization Project (PMP), and the TAZARA Ten-Year Development Program were introduced.

After the Integrated Road Project I & II, a 10-Year Road Sector Development Program (starting in

year 2000) was introduced which was implemented only during its first phase. The second phase of

which has been integrated into the TSIP. These programs have run parallel with government

restructuring in all other sectors. For instance, the transport sector reforms have been aimed at

ensuring that the sector lends deserving support to sustained growth of the productive as well as

service social sectors. The reforms embarked on over the past 8 years include:

(i) Transforming into semi autonomous agencies those government departments whose functions were of operational or service delivery nature:- Tanzania National Roads Agency

(TANROADS), Tanzania Airports Authority (TAA), Tanzania Meteorological Agency

(TMA),Tanzania Government Flight Agency (TGFA), Tanzania buildings Agency (TBA) and

Tanzania Electrical, Mechanical and Electronic Services Agency (TEMESA).

(ii) Establishment of transport regulatory authorities and Boards: Surface and Marine Transport

Regulatory Authority (SUMATRA), the Tanzania Civil Aviation Authority (TCAA), Roads

Fund Board (RFB), Contractors Registration Board (CRB), National Construction Council

(NCC), Engineers Registration Board (ERB), Architects and Quantity Surveyors Registration

Board (AQSRB).

(iii) Increasing Private Sector Participation in the Transport Sector through concession, divesture

and management contractors:

• The operations of the Dar es Salaam Port Container Terminal, TRL and KIA have

been concessioned out

• National Transport Corporation (NTC) and the Regional Transport Companies

(RETCOs) were fully divested in 2002

• Modalities for involvement of private sector in TAZARA, Marine Services Company

Ltd (MSCL) are being worked out.

(iv) Establishment of Roads Fund and Roads Fund Board through the Roads Tolls (Amendment)

No 2 Act of 1998.

(v) Review of the Highway Ordinance which has been replaced by the Roads Act (2007)

(vi) Capacity Building Programmes: Under the ongoing reforms several measures have been

undertaken to ensure availability and sustainability of local technical and managerial capacity

to manage the sector. Review of skills enhancement training programmes to meet needs of

local capacity building is also in progress.

(vii) Merging the two Ministries of Communications & Transport and that of the Ministry of

Works to form the Ministry of Infrastructure Development in 2006 in an effort to reduce fragmentation and disjointed plans in the transport sector.

(viii) Implementation of the Local Government Reform Programme (LGRP) in January 2000 and is

still on-going. The purpose of the LGRP is to devolve political, administrative, and fiscal

responsibilities from central to local government, underpinned by good governance, thereby

enabling LGAs to provide more appropriate, equitable, quality services to Tanzanians,

especially the poor. The programme will therefore also contribute to better management of the

local roads network.

I



23

Further institutional reforms are envisaged to consolidate the implementation of the Transport Sector Investment Programme and the sector in general. For example, TANROADS need to be further

strengthened and given more autonomy. Other issues involve road safety and widening the base of

and increasing the Road Fund. As a start, in July 2007 the fuel levy was increased from Tshs. 100 to

TShs. 200 per liter.

The above institutional reforms have been done to link with the national strategic goals and

objectives. The government wishes to see to it that provision of transport services is carried out by

technically and financially capable institutions. To ensure fair play among service providers and

availability of safe services that are environmentally friendly, regulatory mechanisms have been put in

place where necessary. With this approach, the government has been left with its key roles of policy

formulation, strategic planning and monitoring and evaluation.

5.2 Major Stakeholders Involved in Implementation of TSIP

The principal stakeholders involved in one form or another in the implementation of TSIP include

Government ministries, departments, regulatory authorities and boards, operational agencies /

parastatal, training institutions, financial institutions, development partners and the private sector.

These are briefly outlined below and their details are provided in Annex 1.

5.2.1 Key Ministries

The key Ministries in the transport sector include:

• Ministry of Infrastructure Development (MID) which is the custodian of the overall transport

sector policy development;

• Prime Minister’s Office – Regional Administration and Local Government (PMO-RALG)

responsible for local roads including district and urban roads;

• Ministry of Finance responsible for budget allocations and overall financial regulations;

• Ministry of Planning, Economy and Empowerment responsible for macro policies, planning and

strategies; and

• Ministry of Public Safety and Security responsible for safety & security enforcement matters;

5.2.2 Other Ministries

The other Ministries include:

• Ministry of Industry, Trade and Marketing overseeing standards, import procedures, transport

equipment;

• Vice President’s Office overseeing environment management;

• Ministry of Lands and Human Settlement the custodian of land use planning procedures 7

regulations;

• Ministry of Health and Social Welfare for trauma management;

• Office of the Attorney General for all legal transactions;

• Ministry of Science, Technology and Higher Education responsible for training, research in

technology & management;

• Ministry of Education and Vocational Training for capacity building and training of various

cadres;

• Ministry of Agriculture and Cooperatives and Ministry of Natural Resources and Tourism largely

their activities facilitated by the transport sector.

5.2.3 Regulatory Authorities and Boards

Transport regulatory authorities include the Tanzania Civil Aviation Authority (TCAA) for air

transport, the Surface and Marine Transport Regulatory Authority (SUMATRA) for marine and

surface (i.e. road and railway) transport, and Energy and water Regulatory Authority (EWURA). There are also specific regulatory boards including the Engineers Registration Board (ERB),



24

Contractors Registration Board (CRB), National Construction Council (NCC) and Architects and Quantity Surveyors Registration Board (AQSRB). Further, there are international regulatory

organizations operating in Tanzania including ICAO, IMO, etc.

5.2.4 Operational Agencies/ Parastatal Organizations

Transport sector operation agencies and Parastatal organizations include: Tanzania Ports Authority

(TPA); Tanzania Airport Authority (TAA); Tanzania National Roads Agency (TANROADS);

Tanzania Government Flight Agency (TGFA), Tanzania Meteorological Agency (TMA); Tanzania

Buildings Agency (TBA); Tanzania Electrical, Mechanical and Electronic Services Agency

(TEMESA); Railway Assets Holding Company (RAHCO), Tanzania Railways Limited (TRL),

Tanzania Zambia Railway Authority (TAZARA), and the Roads Fund Board (RFB).

5.2.5 Development Partners (Foreign Countries and International Organizations)

Development partners, both multilateral and bilateral, have been playing a key role in supporting the

development of infrastructure, improvement in the provision of services and technical assistance. Most of these partners are governments (bilateral) and international development institutions with

different priorities in the various transport sub-sectors. They include and not limited to the European

Union, Governments of Belgium, Kuwait, Germany, the Netherlands, United Kingdom, Japan, China,

Sweden, Norway, Denmark, Finland, India, Canada, United States of America, Australia, Ireland,

UNDP, ILO, etc.

5.2.6 Financial Institutions

International and local financial institutions have been playing a vital role in the financing of

development of the transport sector in particular transport infrastructure. Their roles range from

capital support to financing technical assistance, to the provision of resources for infrastructure as well as operational improvement. The international institutions include the World Bank, Arab Bank

for African Development (BADEA), OPEC, African Development Bank (ADB), Kuwait Fund and

European Investment Bank. The local financial institutions include Tanzania Investment Bank (TIB),

National Bank of Commerce (NBC), Cooperative for Rural Development Bank (CRDB), National

Social Security Fund (NSSF), Parastatal Provident Fund (PPF), Local Authority Provident Fund

(LAPF) and National Provident Fund (NPF).

5.2.7 Training Institutions

Training institutions under MID are playing a big role in capacity building of staff in the sector.

Training institution under the Ministry including National Institute of Transport (NIT), Morogoro

Works Training Institute (MWTI), Dar es salaam Maritime Institute (DMI), Civil Aviation Training School (CATS) Bandari College, Tabora Railway Training College, Kigoma Meteorological and

Mbeya Appropriate Technology Training institute (ATTI).

5.2.8 Private Sector

Private sector is an engine of the sector for service provision. Among the private sector operators

within the sector are Tanzania Bus Owners Association (TABOA), Tanzania Tank Operators

Association (TATOA), Dar es Salaam Commuters Bus Association (DACUBOA), Tanzania Truck

Operators Association (TAROTA), Dar-es-Salaam Taxi Drivers Association, and the Association of

Private Air Operators. Others are the Association of Consulting Engineers Tanzania (ACET),

Tanzania Civil Engineers Contractors Association (TACECA), Tanzania Roads Users Association (TARA), Tanzania Forum Group (TFG), Tanzania Farmers Association (TFA), the Tanzania

Chamber of Commerce and Industry (TCCIA), etc.



25

CHAPTER 6

6.0 TRANSPORT SECTOR PERFORMANCE REVIEW (2001/02 – 2006/07)

s indicated earlier, the Government started reforming of the transport sector from early 1990’s.

Prior to this, there was limited resources allocated which resulted in failure to improve the

condition of the existing transport infrastructures and increased backlog of maintenance of especially

the road, railway, maritime and airport networks. These impacted negatively to the overall

performance of transportation in Tanzania and hence to the development of the national economy. The

poor performance of the transport sector also led to failure by the nation to attain some of the poverty

reduction strategies.

In the past 5 years, the transport sector has contributed towards poverty reduction directly by providing off-farm employment opportunities to the poor in rural and urban areas and indirectly by

playing a complimentary role in stimulating production activities and improvement in the social

services. The sector has facilitated to integrate market-strengthening competition, increase access to

farming techniques, promoting trade, tourism, foreign investment and has contributed to increased

government revenue. This chapter outlines the performance of the sector in the last five years.

6.1 Roads

During the period of 2001/02-2005/06, the Government was implementing the First Phase of the Ten-

Year Road Sector Development Programme (10-YRSDP). The emphasis was on providing a safe and

efficient road network for the trunk and regional roads so as to support the social economic

development, and to provide effective linkage with the district, feeder and urban roads. The

implementation of the programme was also addressing the following weaknesses experienced in

implementing Integrated Roads Project (IRP) and the Urgent Roads Rehabilitation Programme

(URRP):

• Low institutional capacity in implementing and managing road projects resulted into delays in

project completion, low quality work and cost overrun.

• Lengthy procurement procedures led to late start of the projects and change of the scope of

the work resulting to further deterioration of the roads sections after design.

• Untimely release of funds for project implementation, which have led to cost overrun and

postponement of some projects.

• Low capacity of local contractors and consultants has become a hindrance to implementation

of the projects. In some parts of the country, regional roads rehabilitation projects could not

be implemented due to lack of contractors.

• Delay in commencement of the 10-YRSDP due to late introduction and preparation of the

programme. The Consultant also delayed in submission of the final report (2002).

• Inadequate financing.

6.1.1 Status of Physical Road Development Works

6.1.1.1 Trunk & regional Roads

The 10-YRSDP was planned to be implemented in two phases of five years each namely, First five

years period from 2001/02 to 2005/06 and the second five years period from 2006/07 to 2010/11. The

status of implementation of trunk and regional road projects is given below and is detailed in Table

6.1

A



26

Table 6.1: A list of constructed / rehabilitated trunk and regional road projects and bridges in

the period 2001/02 to 2006/07

SN Name of Corridor Name of Road Length (km) Financier Cost USD 000s

1 North Eastern Wazo Hill – Bagamoyo 43 ITALY 14,600

2 Lake Circuit Kagoma - Muhutwe 24 OPEC/GOT 5,200

3 Lake Circuit Muhutwe – Mutukula 112 ADB/GOT 17,311

4 Lake Circuit Mwanza Town and Mwanza –

Nyanguge

58 EU 19,000

5 TANZAM Chalinze – Morogoro – Melela 129 DANIDA 37,000

6 Great North Makuyuni - Ngorongoro Gate 77 JICA 23,000

7 TANZAM TANZAM (Kitonga Gorge) 7.64 JICA 7,150

8 Southern Coastal DSM - Mkuranga 60 GOT/KUWAIT 9,120

9 Southern Coastal Mkuranga – Kibiti 60 KUWAIT/OPEC/

GOT

9,500

10 Lake Circuit Kyabakari - Butiama 12 GOT 2,400

11 Southern Coastal Somanga –

Masaninga/Matandu

33 GOT 13,30000

12 TANZAM Bridges along TANZAM GOT/IDA 2,807

13 Western Bridges along Tunduma –

Sumbawanga

GOT/IDA 4,690

14 North Eastern Bridges along Tanga –

Horohoro

GOT/IDA 6,746

15 Southern Costal Rufiji bridge and its

approaches

13.95 KUWAIT/OPEC/

SAUD

29,300

16. TANZAM Songwe – Tunduma 71 NORAD 11,229

17 Central Morogoro – Dodoma 267 EU 40,966

18 Central Shelui – Nzega 112 ADB/GOT 19,675

19 Central Nzega – Tinde – Isaka and

Tinde – Shinyanga – Ilula

73

96

EU

EU

26,637

32,425

20 Lake Circuit El-Nino Repairs Lot 1 128 ADB/GOT 1,544

22 Mid west El-Nino Repairs Lot 2 325 ADB/GOT 1,496

23 Southern El-Nino Repairs Lot 3 203 ADB/GOT 1,484

24 Western El-Nino Repairs Lot 4 189 ADB/GOT 1,459

25 Lake/Central/Mid

west

Rehabilitation of Regional

Roads in Kagera, Dodoma,

Singida and Tabora regions

911 ADB/GOT 23,811

RUSIRM –Iringa

Routine Maintenance

674

EU/GOT

2,713

26

TANZAM/Southern

Backlog Maintenance 623.3 EU/GOT 3,866

RUSIRM - Ruvuma

Routine Maintenance

1275

EU/GOT

12,143

27

Backlog Maintenance 498 EU/GOT 8,183

28 RSPS Phase 2 Iringa & Coast 400 DANIDA

Total 6,074.89 1,709,192

Source: Ministry of Infrastructure Development, 2007

During the first phase of the 10-YRSDP, it was planned to rehabilitate and upgrade 2,158.7 km of

trunk roads and 3,505 km of regional roads. The physical performance for the first five years was

rehabilitation and upgrading 1,168 km of trunk roads and 4,184.9 km of regional roads which is

54.3% and 119% of the targets respectively.

Contribution during the five year period from the Development Partners and the Government was

USD 546.55 million equivalent to 63.7% and USD 311.74 million equivalent to 36.3% respectively.



27

In the period 2000 to 2005, Kilombero ferry (Morogoro), Ukara ferry (Mwanza) and Kilambo ferry in Rukwa were bought at a total cost of TShs 1.958 billion and two rescue boats at Kigamboni in Dar es

Salaam and Mwanza were bought at a cost of TShs 500 million. During this period Ilagala ferry in

Kigoma, Ruhuhu ferry in Ruvuma, Pangani ferry in Tanga, Kyanyabasa ferry in Kagera and

Sengerema ferry in Mwanza were rehabilitated at a total cost of TShs 104 million.

The projects whose procurement or implementation started in the first 5 years of the 10-YRSDP will

spill over to the First Phase of TSIP. The projects are summarized in Table 6.2.

6.1.1.2 Local government Roads

During the period of FY2001/02 – FY2005/06 approximately TShs 5,500 million from the Roads

Fund was used for development works on district, feeder and urban roads. The funds were used for 60 projects on spot improvement, rehabilitation and upgrading of roads and construction of bridges.

Under the Support to Decentralization Programme (SDP) in Mwanza Region from 1998 to 2004,

approximately USD 3 million was disbursed for rehabilitation of 315 km of district and feeder roads

using Labour Based Technology (LBT). The programme has been supported by UNDP/UNCDF and

Norway. The programme trained 9 contractors and 6 consultants in LBT. In early 2006, an additional

amount of USD 1.0 million was disbursed by PMO-RALG using funds from Norway under the Local

Government Transport Programme (LGTP) for rehabilitation of 61 km of roads. These road works,

which were completed by the end of 2006, enabled the contractors to complete down payment of bank loans for procurement of equipment. The programme was phased out at the end of 2006.

Denmark has provided support to local government roads under the Local Roads Component of the

Road Sector Programme Support (RSPS) since the start of Phase 1 in 1996. Assistance has been

provided for spot improvements and rehabilitation of district and feeder roads in Rufiji and Kisarawe

districts in Coast Region and Mufindi and Iringa Rural districts in Iringa Region. The programme also

supports implementation of the Village Travel and Transport Programme in some of these districts as

well as training of small scale contractors in LBT. The support for Iringa Rural, Kilolo and Mufindi

districts will continue in Phase 3 which started in FY 2005/06 and will be expanded nation-wide

under the LGTP.

During the RSPS - Phase 2, a new component of institutional support to PMO-RALG Headquarters

commenced with a technical adviser supporting road fund management and VTTP. This support will

continue in Phase 3 including support to the LGTP.

Currently there are also road works being implemented on district, feeder, urban and community

roads funded by the Councils own revenue, Tanzania Social Action Fund (TASAF) supported by WB,

Agricultural Marketing Systems Development Programme (AMSDP) supported by IFAD and ADB,

Agriculture Sector Development Programme (ASDP) supported by several development partners and

to some extent Local Capital Development Grant supported by WB and some other development partners.



28

Table 6.2: A list of ongoing trunk roads projects which will be taken on board the TSIP

SN Name of Corridor Name of Road/Bridge Length (km) Financier

Under Rehabilitation/Construction

1 TANZAM Msimba-Ruaha Mbuyuni-Kitonga &

Ikokoto-Mafinga

219 DANIDA

2 TANZAM Ruvu bridge 104 (m) GOT

3 North Eastern Tarakea-Kamwanga-Rongai 32 GOT

4 North Eastern Marangu-Mkuu Rombo 34 NORAD

5 North Eastern Tarakea-Mkuu Rombo 32 BADEA/GOT

6 South Coastal Nangurukulu-Mbwemkulu-Mingoyo 160 GOT

7 Lake Kagoma-Lusahunga 154 ADB/GOT

8 Lake Geita-Chato-Kyamyorwa 220 GOT

9 Central Dodoma-Singida 246 GOT

10 Central Singida-Shelui 110 IDA/GOT

11 Dar Roads Mandela road 32 EU

12 Dar Roads Kilwa road 23.2 JICA

13 Dar Roads Sam Nujoma 8 GOT

14 Mid West Mbeya – Makongorosi 115 GOT

15 Road Sector Programme (RSP) -

Regional Roads

276 NORAD/GOT

16 STABEX (8 coffee growing regions

(Regional Roads)

350 EU/GOT

17 STABEX District Roads 205 EU/GOT

Under Procurement of the Contractor

18 North Eastern Korogwe-Mkumbara-Same 165 IDA

19 North Eastern Chalinze-Segera-Tanga 245 DANIDA

20 South Coastal Ndundu-Somanga 60 KUWAIT/OPEC/GOT

21 Great North Road Arusha-Namanga 106 ADB/GOT

Detailed Engineering Design Completed

22 Great North Road Singida – Babati – Minjingu 223 NDF

23 Great North Road Dodoma – Babati 263 NDF

24 Lake Bwanga-Biharamulo 100 GOT

25 Lake Bwanga – Uyovu 120 GOT

26 Lake Makutano-Fort Ikoma 100 GOT

27 Mid West Tabora-Kaliua-Uvinza 120 GOT

Detailed engineering design on going

28 Western Corridor Sumbawanga-Mpanda 240 GOT

Feasibility study and Detailed Engineering Design ongoing

29 Lake Isaka-Bukombe- Lusahunga 128.9 EU

30 Lake Nyanguge-Musoma 184.2 EU

31 Western Corridor Kigoma-Kasulu-Nyakanazi 100 GOT

Total 4,371.3

Source: MOID

Quite a number of area-based programmes, including rehabilitation of district and feeder roads, have

been completed over the last 5 years. These include, among others, programmes supported by SDC,

SNV, SIDA, WB, USAID, Irish Aid, Finnida and Plan International.



29

The VTTP include development of community roads/paths/tracks/footbridges, intermediate means of transport (IMTs), non transport interventions (NTI) and improvement of landing points, etc. Activities

have been implemented in 7 Pilot Districts since early 1990s. Over the last ten years, activities have

been implemented in Mbozi and Muheza districts funded by Norway, Iringa and Rufiji districts

funded by Denmark, Morogoro Rural funded by Switzerland, Iramba funded by World Bank, and

Masasi funded by Finland. The VTTP will be replicated nation wide under the LGTP.

The Government launched the National Rural Transport Programme (NRTP) in FY 2005/06, now

renamed the Local Government Transport Programme (LGTP), to emphasize that it will also deal

with urban roads. The Government has so far attracted support to the programme from Norway and

Denmark over a five year period ending in 2010 and 2011 respectively. The Programme is part of the

TSIP. A new Programme Document for the implementation phase of the LGTP is expected to be

adopted by the Government by the end of 2007.

6.1.2 Review of Maintenance Works for the first five year of 10YRSDP (2001/02 to 2005/06)

6.1.2.1 Road fund disbursements

The Roads Fund level increased by 114% from Tshs. 40.03 billion in 2000/01 to Tshs. 85.743 billion

in 2006/07. The Government commitment to ensure improved level of maintenance of its road asset

is depicted in the trend of road fund allocation summarized in Table 6.3.

Due to increased flow of funds and the major programme of road rehabilitation, the proportion of the

road network in good condition has improved tremendously from 14% in 2002/03 to 40% in

December 2006 for trunk and regional roads. The corresponding figures for roads in poor condition

were 49% in 2002 to 22% in December 2006. The road condition was based on visual assessment.

Table 6.4 depicts the trend of improvement of road condition for trunk and regional roads.

6.1.2.2 Trunk and Regional Roads

Maintenance works carried out annually on the road network during the last six year period included

regular maintenance and backlog maintenance. The regular maintenance was funded by Roads Fund

and it included routine and recurrent, periodic, spot improvement, bridge and emergency maintenance

activities. The backlog maintenance was funded by Development Partners through various

development programmes and is therefore reviewed under the section for development works.

The maintenance funding from Roads Fund which was allocated for trunk and regional roads

maintenance amounted to Tshs 259,093 million over the period and the corresponding annual allocations are as shown in Table 6.3.



30

Table 6.3: Actual Roads Fund disbursements FY2001/02 – FY2005/06 and Budget FY2006/07

(TShs. Billion)

Agent

Actual

2001/02

Actual

2002/03

Actual

2003/04

Actual

2004/05

Actual

2005/06

Budget

2006/07 Total

MoW / MID 3.49 4.45 4.47 5.09 5.19 5.92 28.61

TANROADS 31.39 41.65 40.21 45.79 46.74 53.32 259.09

PMO-RALG 15.24 19.30 19.15 21.80 22.26 25.44 123.19

RFB 0.62 0.67 0.69 0.73 0.86 1.05 4.64

Total 50.74 66.07 64.52 73.4 75.05 85.74 4.5.53 Source: Roads Fund Board, December 2006

Table 6.4: Trend of Trunk and Regional Roads Condition

Good Fair Poor Total Year

(km) (%) (km) (%) (km) (%) (km) (%)

2002 4,081 14 10,199 37 14,052 49 28,510 100

2003 10,012 35 10,813 37 8,108 28 28,892 100

2004 12,394 43 10,377 35 6,299 22 28, 892 100

2005 14,764 51 9,615 33 4,489 16 28,892 100

2006 11,648 40 10,839 38 6,440 22 28,892 100 Source: TANROADS (December 2006)

The regular maintenance financed through Roads Fund on average covered the following physical

achievement:

(i) Routine maintenance was carried out on average of 17,088 km annually; periodic

maintenance and spot improvement covered on average 1,119 km annually; and bridge

maintenance was provided to an average of 2,397 numbers of bridges annually.

(ii) The maintenance works carried out over the period were largely executed by private sector (average of 93% of the value of works) and to a lesser extent by the Force Account

method (7%). Community groups (women & youth) were used as contractors in some

selected works so as to support National Policies of poverty reduction.

On other hand the financial expenditure on maintenance works was on average 75% of the allocated

budget over the period and ranged from 73% in FY200/01 to 81% in FY2006/07. The remaining

funds at the end of each financial year were utilized in the subsequent financial year to complete on-

going committed works.

Vehicle axle load control operations were carried out using mobile and permanent weighbridges along

all trunk roads corridors. As a result, there has been an overall reduction in vehicle overloading with percentage of overloaded vehicles falling from 18% in FY2000/01 to less than 7% in FY2006/07.

During the period 2001/02 – 2006/07, Road Maintenance Management System (RMMS) and Bridge

Maintenance Management System (BMMS) were further upgraded to add more features for planning

and monitoring purpose. The systems are operational and currently are being upgraded to incorporate

latest features like GIS modules. Both systems act as data banks with RMMS storing data like traffic,

condition and road inventory, and BMMS storing data on bridge condition and inspection. Also the

systems have analysis modules which assist in the development of the annual maintenance

programme. Data from RMMS can be exported into HDM4 for multi-year analysis (programme and strategic analysis).The first comprehensive inventory for trunk and regional roads were completed in

December 2003. Also all roads data like condition, traffic and bridge condition and inspection data

were collected periodically.



31

6.1.2.3 Local Government Roads

The maintenance of local roads over the last six years has been guided by:

(i) The adopted strategy to carry out full routine maintenance of all roads and cross drainage

structures in good and fair condition,

(ii) Periodic maintenance of roads in transient from fair to poor condition,

(iii) Spot maintenance of roads in poor and bad condition and re-installing bridges, drifts and culverts which have been washed away by rains, damaged by traffic or worn out due to

age.

The maintenance funding, including 10% for development works, is shown in Table 6.3 above. The

increased maintenance funding together with development works has made it possible to increase the

network being maintained and the proportion of roads in good and fair condition has increased from

50% in FY 2003/04 to 55.2 % in FY 2005/06, However, the funding level in FY2005/06 was still only

28% of the estimated needs which cannot sustain the condition of the network. The 150% increase of

maintenance funding in FY2007/08 is therefore a very important development that can improve the condition of local roads and sustain new investments.

Starting in 2002, PMO-RALG has developed a District Roads Management System (DROMAS).

DROMAS has so far been rolled-out to 56 councils and the remaining councils will be trained by the

end of FY2007/08. The DROMAS will make it easier for the councils to keep updated records of

inventory and condition data, prepare annual work plans for maintenance and rehabilitation works,

manage works contracts and prepare reports to PMO-RALG and the Roads Fund Board.

There has been a lot of uncertainty with respect to the size and condition of the road network under

the Local Government Authorities. Thus, PMO-RALG with funds from the World Bank

commissioned a Local Government – Road Inventory and Condition Survey (LG-RICS) to establish the inventory and condition of district, feeder and urban roads. The study started in August 2005 and

the survey was completed in November 2006. The first draft report was made available in December

2006 and the final report is expected to be out by November 2007. Inventory and condition data will

be updated annually by the councils as part of DROMAS, i.e. Annual District Roads Inventory and

Condition Survey (ADRICS).

6.1.3 Major Achievements during the Period 2001/02 – 2006/07

Major achievements in the road sub-sector during the period 2001/02 - 2006/07 are:

• Proportion of trunk and regional roads in poor condition decreased from 49% in 2000 to 22%

in December 2006.

• Proportion of local roads in poor and bad condition decreased from about 75% in 2003 to

44.5% in FY2005/06.

• The capacity of Local Government Authorities to manage road works has improved due to

increased deployment of staff. Number of civil engineers in councils substantially increased

to 168.

• Quality of supervision of road works on LGA roads has improved.

• Capacity of supervising transport for council engineers has improved.

• Sharing of knowledge between council engineers has improved.

• Training of small-scale contractors in labour based technology (LBT) through area-based

programmes funded by development partners.

• Regional Secretariat (RS) Engineers now in place in all regions.

• Construction Industry steadily developed as the private sector become more involved in

execution of maintenance works. Out sourcing increased from 92% in 2000 to 98% in 2006.

• More than 7,000 road maintenance contracts for trunk and regional roads were awarded

between 2000/01 and 2006/07. Most of these were awarded to local firms and hence contributed toward poverty reduction.



32

• Contractors and Consultants skills continued to develop through organized training and jobs

offered (on-job training/learning).

• Overloading on trunk roads was reduced from 18% in FY2000/01 to fewer than 5% in FY

2006/07 for all vehicles weighed.

• There was noticeable improvement in reduction of travel time, increased access to rural

communities, saving in vehicle operating costs and savings in vehicle maintenance costs.

6.1.4 Challenges, Shortfalls and Weaknesses

During the first 5 years of implementation of the 10-YRSDP, the achievement of the planned length

of road improvement was 54.3%.

The challenges and reasons for shortfalls in achieving targets of the 10-YRSDP in the first five years

were as follows:

• Inadequate financing, particularly for road maintenance.

• Inadequacy of plant and equipment for road works in the country.

• Local Construction Industry Capacity, which is limited in managerial skills and financial

capacity. Also poor in equipment management skills and tendering skills.

• Institutional capacity of the implementing agency with inadequate contracts management

skills among supervising staff and deficiencies in supervision facilities.

• Delay in commencement of the programme due to late introduction and preparation of the

programme. The Consultant also delayed in submission of the final report (2002).

• Delay due to cumbersome procurement procedures in the initial years.

Measures to address these challenges included providing the necessary training to staff in the agencies

and to the local construction firms. Regarding plant and equipment, the existing plant pools were

strengthened and private sector was encouraged to either invest in plant hire companies or to buy

equipments for their use. The revised Public Procurement Act No. 21 of 2004 has empowered

Ministries and its Institutions to award contracts of any magnitude. This change has shortened the

procurement process.

For the local roads, some of the major shortcomings are:

(i) Inadequate funding of development works,

(ii) Inadequate network management and maintenance planning,

(iii) Limited technical capacity at district level, both staff and facilities, causing delayed

implementation of works and underutilization of funds,

(iv) Implementation of works not being part of approved work plans,

(v) Maintenance funds being used for rehabilitation works,

(vi) Poor contract administration and documentation,

(vii) Insufficient supervision and quality control of road works,

(viii) Lack of manuals and standard documents,

(ix) Insufficient capacity of well qualified locally based contractors and equipment, in particular those specializing in labour based technology and difficulties of monitoring an

extensive network of small roads.

6.2 Railways

6.2.1 Reli Asset Holding Company (RAHCO)

The RAHCO railway has an infrastructure design capacity of carrying 5 million tonnes of freight per

annum. However, due to various reasons the design capacity utilization is about 25%. The

government through the Reli Asset Holding Company has been burdened with deferred maintenance on the permanent way. In the case of locomotives and rolling stock, the burden of deferred

maintenance falls under the responsibilities of the Tanzania Railways limited (TRL). No efforts have

been undertaken to modernize the infrastructure. As a result the network is old and outdated leading to

low operational efficiency. For example, travel time between Dar es Salaam and Kigoma is three days



33

which could be reduced to one and half days with modernization. The narrow gauge is a major contributor to speed limitation and is very prone to accidents. On the other hand, spare parts are not

readily available since they are outdated.

In an effort to solve this problem the World Bank has committed to assist the government on

infrastructure development, RAHCO’s capital structure has been improved by the government

through a debt swap mechanism; totaling TShs. 80 billion and, recently, the government provided

about USD 2.3 million to overhaul 11 mainline locomotives and rehabilitate 70 wagons. However, RAHCO needs more comprehensive investment package to keep it back on the rails again. As

indicated in Table 6.5 and 6.6, in the period 2000/01 to 2005/06 the following RAHCO capital

development and maintenance projects were implemented:

But even when the above interventions have been undertaken the move will enable RAHCO to get

modernized in any way. A study will have to be undertaken to determine what exactly needs to be

done to make RAHCO modern at least in the long term.

TRC has had the advantage of long average hauls of over 1,000 km largely contributed to by the wide

geographical spread of production centres and transit trade to/from the landlocked countries of

Democratic Republic of Congo, Burundi, Rwanda and Uganda. Transit freight has at times been as

high as 38% of the total whereas freight revenue has been over 85%, of the total revenue, the rest

obtaining from passenger traffic.

Operational efficiency of TRL performance (Table 6.7) has been constrained mainly by

infrastructural problems. There is also growing competition from road and the North Corridor from

Mombasa – Kampala. The stiff competition from road transport has made TRL to discontinue its

passenger services between Dar es Salaam and Moshi. Poor rolling stock, i.e. locomotives and

wagons, have also contributed to the low operational performance of TRL. This is vividly indicated in

the fact that the number of transported passengers by TRC decreased from 728,000 in 2001 to

628,000 in 2004. Freight by TRL dropped from 1.35 million tonnes in 2001 to 0.775 million in 2006.

The status of RAHCO infrastructure and operating equipment is worsening; the freight performance

reached the highest level ever in 2002/3 since 1977 and now declining. This trend can only be

reversed to reach the desired financially viable level of about 2 million tonnes with heavy investment

in infrastructure and operating equipment. M/s RITES, the concession Operator of TRL will lease and

rehabilitate existing locomotives, wagons and coaches from RAHCO as well as purchase and/or dry

lease additional ones.

Table 6.5: TRC major development projects 2001/02-2005/06

Project Title Financier Year

Commenced

Year

Completed

Project Cost

(Tshs. Million)

Supply and installation of 240 turnouts KFW 1999 2001 6620

Permanent Structures (Kilosa-Kidete section) IDA 2001 2001 1,300

Rehabilitation of 100 wagons TRC 2002 2003 1610

Rehabilitation of 10 coaches KFW 2003 2004 630

CTCP:Environmental Impact Assessment

Plan Study IDA 2005 2005 200

CTCP:Resetllement Plan IDA 2005 2005 200

CTCP: Change Manager (Restructuring

Advisor) IDA 2005 2005 220

Ilala Container Equipment Belgium 2005 2006 765

Shinyanga Container equipment Belgium 2005 2006 275

Mwanza Container Equipment Belgium 2005 2006 275

Telecom Network Phase III (Dodoma-Tabora

Section) Netherlands 2005 2006 21,247

Total 33,342 Source: TRC



34

Table 6.6: TRC maintenance projects 2001/02-2005/06 Cost in TShs millions

Type of

Maintenance 2001 2002 2003 2004 2005

Permanent Way 9,174.25 9597.12 11,049.35 10,966.77 8,381.53

Signals and Telecoms 1,879.06 1,965.68 2209.87 1,740.96 1,104.83

Locos and rolling

stock 4,329.80 4,056.30 5,690.31 8,477.53 5,480.40

TOTAL 15,383.11 15,619.10 18,949.53 21,185.26 14,966.76 Source: TRC

Table 6.7: TRC Operational Performance Indicators 2001 – 2004

2001 2002 2003 2004 2005 2006

Broken rails (occurrences ) 205 193 259 334 447 308

Main Line Locomotive availability

(Nr) 62 60 59 55 48 39

Main Line Locomotive Reliability

(km/per failure) 6,359 5,400 4,107 2,720 2,379 1,985

Freight Performance (tonnes) 1,350,625 1,445,757 1,442,713 1,333,249 1,128,000 775,000

Transit Freight (tones) 524,555 457,436 445,146 474,691 463,236 240,510

Passengers (Nr) 728,000 684,796 683,481 627,969 674,029 594,089

Average Speed (Kph) Pax Train 30.3 29.8 30 29 28.9 28.4

Average Speed (Kph) Freight

Train 15.6 16.1 15.9 13.5 12.8 10.4

Source: TRC

6.2.2 Tanzania Zambia Railway Authority

TAZARA is a 1,860 km line constructed in the 1970s. Its infrastructure is in a reasonably good

condition but is facing serious operational and financial constrains. The railway has a design capacity

of carrying 5.0 million tonnes of freight per annum, i.e. 2.5 million tonnes in each direction, and 3.0

million passengers per annum. As indicated in Table 6.8, in the period 2000/01 to 2005/06 TAZARA

implemented several capital development and maintenance projects. TAZARA Own Resources were used for maintenance as shown in Table 6.9.

Table 6.8: Capital Development Programmes Implemented by TAZARA from 2000/01 – 2005/06 (USD)

Particular 2001/02 2002/03 2003/04 2004/05 2005/06 Total

TAZARA Own Resources 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 15,000,000

GoT Nil Nil Nil Nil 100,000 100,000

Other (China and Austria) 34,000,000 0 3,000,000 3,000,000 Nil 40,000,000

Total 37,000,000 3,000,000 6,000,000 6,000,000 3,100,000 55,100,000 Source: TAZARA

Table 6.9: Maintenance costs of TAZARA from 2001/02 – 2004/05 (USD million) 2000/01 2001/02 2002/03 2003/04 2004/05

4.50 4.77 4.66 5.41 5.47

Source: TAZARA

The performance of TAZARA in goods and passengers transport in the period 2000 – 2004 is shown

in Table 6.10. Whilst the performance trend for traffic has shown a fluctuating trend between

domestic and international traffic, the performance trend for the passenger traffic has remained quite

stable.



35

Like in the case of RAHCO, priority for TAZARA will be on maintenance, rehabilitation/replacement of equipment, strengthening of the permanent way and modernization.

Table 6.10: Goods and passengers transported by TAZARA from 2000 – 2004

Year Locomotives Passenger

Wagons

Goods

Wagons

Domestic

Passengers

International

Passengers

Domestic

Goods

(tonnes)

International

Goods

(tonnes)

2000 14 72 1294 1,523,452 19,845 249,573 384,259

2001 15 67 1049 1,510,180 30,820 247,276 361,252

2002 15 64 819 1,047,620 21,380 191,898 384,955

2003 15 65 931 1,000,956 20,428 143,463 458,137 2004 15 65 931 1,000,950 20,500 143,440 459,110 Source: MCT Budget Speech FY 2005/06

6.2.2 Weaknesses and Shortfalls of Railways Sub-Sector

Railway system has faced the following weaknesses and shortfalls:

• Operational efficiency of TRC performance has been constrained mainly by infrastructural

problems.

• Competition from other regional corridors such as Maputo Corridor and the Northern

Corridor from Mombasa to Kampala, Kigali and Goma.

• Competition from corridors through Mozambique especially after restoration of peace in most

states in Southern Africa; and also the improvement of transportation facilities of other

modes.

• Poor performance of the economy of neighboring landlocked countries.

• Change in traffic patterns.

• Infrastructure and rolling stock weaknesses on the part of TRC and TAZARA.

6.2.3 Strategic targets set for the Railways

• Keeping railway infrastructure in public ownership or oversight but at the same time bringing

in public/private sector partnerships wherever possible.

• Mobilizing financial resources through the Government and also through government/private

sector partnerships while at the same time seeking for the support of development partners.

• Speeding up the reform process for TAZARA which includes the concessioning of operations

to enhance performance efficiency.

• Enhancing regulation to ensure fair play between modes.

• Reviewing the institutional framework arrangements to enable TAZARA make decision and

operate on a business manner.

• Undertaking railway master-plan study to determine level of modernization and infrastructure

required, additional network needs and funding modalities.

6.3 Maritime Transport

6.3.1 Coastal Ports

The Tanzania Ports Authority in between 2002 and 2006 implemented a number of development

projects which were designed to modernize the ports by providing additional cargo handling

equipment, improve and upgrade infrastructural facilities. A total of TShs.101,976 million was

invested over the past five years (Table 6.11).

Table 6:11: Capital Investment Budgets 2002/03 – 2006/07 [TShs. Million]

Year 2002/03 2003/04 2004/05 2005/06 2006/07 Total Capital Investment 8,460 12,931 21,267 18,408 40,910 101,976



36

Major projects implemented during the period include the dredging of the Dar es Salaam port entrance channel and modeling of the West Ferry Terminal, improvements to Kurasini Oil Jetty and procurement

of various equipment (including marine crafts, pilot boats and passenger landing pontoon). The impact of

these projects has been reflected in the improved port services, the major of which has been the improved

turn round of ships including the twenty four hours navigation along the Entrance Channel, reduced ship

stay at port and reduced berth occupancy levels at Dar es Salaam Port.

During 2006/2007, TPA set aside T.shs.40,910 million for the Capital Development Programme. Major

civil works projects under implementation include the following:

• Construction of New Port Control Tower - Dar es Salaam.

• Rehabilitation of sinking sheds floors - Dar es Salaam.

• Repairs to Container Terminal Piles - Dar es Salaam.

• Rehabilitation of lighter quay No. 1 – Tanga.

• Heavy duty paving Mtwara for Container Traffic.

• Replacement 18” Crude Oil Submarine Pipeline at KOJ

• Acquisition Marine and Cargo Handling Equipment

6.3.2 TPA Maintenance costs (2001/02 – 2006/07)

The TPA maintenance costs has mainly been on repair of equipment and minor works in the areas of

infrastructure repairs such as rails tracks, roads within the port area, repairs to the sheds and

pavements and maintenance to the floating crafts. The maintenance cost is shown in Table 6.12.

Table 6.12: Maintenance costs of TPA from 2001/02 – 2006/07 (TShs. million)

Year 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Maintenance Costs 2,721 3,534 4,773 4,803 3,914 7,750 9,314 Source: TPA

The total cargo traffic handled by major coastal ports over the past six years has increased from

4,684,929 tons in 2001 to 7,291,106 tons in 2006, an average of about 6.0 million tonnes annually

with a growth rate of 6.7%. The larger portion of this traffic has been containerized cargo which has

been increasing at an average rate of 19.5 % per annum from year 2002. Table 6.13 shows the trend.

The Port of Dar es Salaam has the largest share in cargo traffic, with 6,657,496 tons in 2006. About

20 percent of the total traffic through the Port of Dar es Salaam is transit cargo (Table 6.14)

Table 6.13 Total cargo traffic handled by major coastal ports

PORT/YEAR 2001 2002 2003 2004 2005 (DWT)2006

Dar es Salaam Port

Imports 3,512,177 3,630,716 4,041,779 4,763,537 4,829,009 5,225,448

Exports 665,768 724,344 881,384 914,925 1,051,184 1,003,974

Transshipment & Bunkers 93,629 169,449 245,801 375,557 404,867 428,074

Sub Total 4,271,574 4,524,509 5,168,964 6,054,019 6,285,060 6,657,496

Tanga Port

Imports 100,756 100,192 130,978 128,924 183,413 260,896

Exports 130,765 168,264 205,640 210,499 216,103 217,790

Sub Total 231,521 268,456 336,618 339,423 399,516 478,686



37

PORT/YEAR 2001 2002 2003 2004 2005 (DWT)2006

Mtwara Port

Imports 71,318 78,734 69,957 65,761 55,290 62,598

Exports 110,516 100,727 71,377 89,142 54,907 92,326

Sub Total 181,834 179,461 141,334 154,903 110,197 154,924

Grand Total 4,684,929 4,972,426 5,646,916 6,548,345 6,794,773 7,291,106

Source: TPA

Transit traffic to and from Uganda and Burundi is also carried by vessels of the Marine Service

Company through Mwanza Port on Lake Victoria. Table 6.15 shows that the trade with Uganda has

increased substantially from about 230,000 tons in 2000 to about 310,000 tons in 2004, while at the

same time trade with Burundi decreased from almost 200,000 tons in 2001 to 100,000 tons in 2004.

Table 6.16 shows that, there has been an increase from 565,704 passengers in 2001 to 756,259

passengers embarked and disembarked in 2004 at the major sea ports.

Table 6.14 Transit traffic through Dar es Salaam Port 2001-2006 (in tons)

Country 2001 2002 2003 2004 2005 2006

Zambia 440,101 474,296 586,636 776,468 684,277 746,353

D.R. Congo 101,804 100,998 117,929 170,562 211,996 334,131

Burundi 89,122 64,852 72,902 92,685 146,928 95,892

Rwanda 70,978 48,284 50,661 63,392 83,506 77,918

Malawi 5,661 66,534 28,963 24,559 28,530 77,357

Uganda 111,860 40,432 69,747 111,811 83,592 46,855

Others 93,571 105,407 78,055 119,333 141,272 150,757

Total 915,098 902,805 1,006,896 1,360,814 1,382,106 1,531,269 Source: TPA

Table 6.15: Transit cargo through Mwanza Port by MSCL vessels 2000/04 (in tons)

Country 2000 2001 2002 2003 2004 2005 2006

Uganda

Imports 182,838 201,400 176,832 194,214 243,640 279,820 222,777

Exports 49,208 52,500 75,733 43,251 65,862 68,928 43,100

Burundi

Imports 140,146 171,328 130,752 116,513 86,911 107,824 110,600

Exports 30,933 26,416 17,457 24,499 13,884 13,262 18,276 Source: MSCL

Table 6.16: Number of Passengers through Coastal Ports

PORT 2001 2002 2003 2004 2005 2006

Dar es Salaam 528,421 584,303 647,455 690,000 708,124 664,338

Tanga 875 1,675 2,792 3,500 36,353 8,968

Mtwara 36,408 62,499 32,778 40,235 11,782 8,968

TOTAL 565,704 648,477 683,025 733,735 756,259 682,134 Source: MCT Budget Speech, FY 2005/06

6.3.3 Containerization

Following ongoing institutional reforms in the transport sector, in 1998 the operations of Dar es

Salaam Container terminal was leased to a private operator called Tanzania International Container

Terminal Services (TICTS).



38

The Dar es Salaam Container terminal is rated to handle 250,000 TEUs per annum. During the last 3 years container throughput has been increasing at an average rate of 19.5% per annum compared to

earlier projections of between 5-10%. During the year 2006, the container terminal handled 255,880

TEUs which is higher than the terminal rated capacity of 250,000 TEUs. The upsurge in throughput is

due to increase in transshipment cargo. The average growth rate of import containers was 15.5% and

that of export containers was 11.9% per annum as summarized in Table 6.17.

Table 6.17: TICTS Containerized Cargo TEUs

Particular 2001 2002 2003 2004 2005 2006

Imports 76,042 82,703 98,512 115,919 127,066 130,269

Exports 16,369 35,886 44,374 65,544 68,053 66,289

Transshipment 6,280 24,818 36,638 55,580 59,322 59,322

Total 98,691 143,407 179,524 237,043 254,441 255,880 Source: TPA Container Terminal

6.3.4 Inland Waterways

There has been a stiff competition for freight between the private operators and the MSCL following

an increase in private sector participation in maritime service provision. However, MSCL has

managed to increase the freight it carries on Lake Victoria as indicated in Table 6.18. There was

remarkable performance improvement over the past five years 2002001/02 – 2005/06. Freight has

increased from 56,924 tons handled in 2002/03 to 87,889 tons in 2005/06. Freight at Mwanza Pier

increased from 11,164 tons to 38,260 tons. However cargo transport by MSCL through Kigoma

decreased from 16,115 tons in 2001/02 to 1,897 tons in 2005/06.

Table 6.18: MSCL Freight Performance (tonnes)

PORT 2001/02 2002/03 2003/04 2004/05 2005/06

Bukoba Pier 3,900 9,017 6,789 11,770 13,750

Mwanza Pier 11,164 15,817 15,752 33,487 38,260

Mwanza South Pier 20,495 21,680 22,530 22,530 23,695

Kemondo Bay 10,589 5,200 4,090 19,020 10,287

Kigoma 16,115 5,210 15,875 1,769 1,897

TOTAL 62,263 56,924 65,036 88,576 87,889 Source: MSCL

There has been a varying trend of passenger traffic over the past five years due to several factors but

the most important is the weather situation in the year. When agricultural production is low due to

poor weather conditions, fewer passengers are recorded because fewer trips are made to the markets.

Table 6.19 indicates the trends of passengers in the last five years that was carried by MSCL.

Table 6.19: Number of Passengers Handled by MSCL

PORT 2001/02 2002/03 2003/04 2004/05 2005/06

Mwanza 106,173 126,866 118,742 203,533 205,625

Bukoba 68,991 67,788 80,106 81,878 86,780

Kigoma 13,182 39,594 15,514 10,040 16,230

Itungi Port 6,608 11,983 8,180 6,293 7,320

Kemondo Bay 8,777 8,781 9,378 8,433 9,420

Mbamba Bay 2,520 3,500 1,398 852 1,230

Nansio 68,450 58,316 35,198 113,374 189,320

TOTAL 274,701 316,828 268,516 424,403 515,925 Source: MSC

There was a huge increase in the passenger traffic in the year 2004/05. This was due to favourable

weather condition that resulted to higher agricultural production.



39

Modernized water way transport is expected to attract private sector to lease the waterway facilities or operations. The improvement of railways, roads, ports is expected to contribute to the increase of

passengers through the ports. In order to cope with improvements of other modes of transport, during

the first phase of TSIP projects related to the improvement of facilities are going to be implemented to

make the best use of the inland water ports and also to make the inland water resource more accessible

mode of transport especially for the people around these lakes.

6.3.5 Achievements

i) Efficiency in container handling has increased from less than 6 containers per hour in

1998 to above 15 containers per hour after concessioning of container terminal handling.

ii) Established Tanzania Port Authority which is a land lord of coastal and inland waterways

ports.

iii) Ships of all size (with exception of Panamax ships) can now enter to the Dar es Salaam

port for 24 hours a day since dredging of the port was executed in 2000. Previously ships

were entering the Dar es Salaam port in day time only.

6.3.6 Weaknesses and shortfalls

The following factors contributed in low performance in the marine transport sub sector:

(i) Increased competition for transit cargo arising from availability of alternative routes for

landlocked countries. Almost 30% of total Dar es Salaam port throughput is transit cargo.

(ii) Lack of bulk handling facilities for loading and discharging at Dar es Salaam port. The

use of conveyor belts is more cost effective if the traffic levels justify for such

investment.

(iii) Increasing competition from the ports of Mombassa, Beira and Daburn.

(iv) Inadequate capacity to handle increased container traffic at Dar es Salaam port

(v) Poor infrastructure at inland ports particulary on link span, slipways and dredging at

Mwanza North, Kemondo bay, Musoma and Kigoma port.

(vi) Poor navigation due to lack survey and maps within the lakes. No aids to navigational

exist.

(vii) Drastically decreasing water levels at all ports has affected the port landing facilities

especially at Nansio and Kigoma ports.

(viii) Lack of adequate capacity of inland Transportation system e.g. rail, road and lake

services.

(ix) Inadequate container handling facilities and equipment at Mtwara port.

(x) The lighterage operation at Tanga Port which involves double handling of cargo is costly.

The need to address these weakness and short falls is the essence of the TSIP.

6.4 Air Transport

The liberalization of aviation sector has brought on board competitive private sector operators. Room

for more airlines is available to improve competition in the supply of air passenger services

throughout the country. The domestic services also serve to satisfy business and tourism markets.

International scheduled services are governed by Bilateral Air Agreements concluded between

Tanzania and other countries.

The number of registered air operators in the country has been increasing year after year. The aviation

industry has been steadily growing with an average growth rate of 9% annually. This growth rate is

greater than the average 4% growth rate of the global aviation industry.

International Scheduled Air Services in the country has been increasing as well. As of December

2004, there are 16 foreign airlines providing international scheduled services. The number of weekly

frequencies by these airlines has been increasing thus increasing passenger traffic. As the economy

grows flight frequencies will increase and necessity for better airport facilities will be desirable.



40

Passenger Traffic 2000 to 2006

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Yr 2000 Yr 2001 Yr 2002 Yr 2003 Yr 2004 Yr 2005 Yr 2006

Overall

TAA

6.4.1 Investment and Operational Performance (2001/02 – 2005/06)

In the period 1999 to 2006 various airport capital development projects were implemented as shown

in Table 6.20 while Table 6.21 gives the TAA infrastructure routine maintenance costs for

FY2001/02 – FY2004/05. In its short span of existence (seven years) as an executive agency, it has

increased its revenue to TShs 23 billion in FY 2006/07 from TShs 4.34 billion in FY 1999/2000.

TAA has also improved the infrastructure, services and conditions of airports in Tanzania to a great

extent and has accelerated the process of rehabilitation of its airports.

Table 6.20: Capital Development Programmes implemented by TAA and KADCO from 1999 –

2006

S/N Project Name Funding Source of

Funding

Year of

completion

1 Julius Nyerere International Airport (JNIA) rehabilitation of apron, runway, Aeronautical Ground Lighting System, sewage

system and storm water drainage system

Euro 22,000,000 ORET/ING-Bank

2006

2 Dar es Salaam International Airport (DIA) rehabilitation of power

supply system

Euro 4,800,000 ORET/EIB 2004

3 DIA and KIA supply of fire tenders USD 2,540,000 ORET/EIB 2000

4 Mwanza airport rehabilitation of Runway and Aeronautical

Ground Lighting System

USD 7,000,000 EU 1999

5 KIA rehabilitation of Runway and Aeronautical Ground Lighting

System

USD 5,800,000 IDA 1999

6 Ongoing Projects Songwe Airport TShs 19,500,000,000 Ongoing

Source: TAA

Table 6.21: Routine Maintenance Costs of TAA from 2001/02 – 2004/05 (TShs.)

FY2000/01 FY 2001/02 FY 2002/03 FY 2003/04 FY 2004/05

1,841,597,265 2,209,304,705 2,432,729,706 2,414,573,067 2,130,205,435 Source: TAA

6.4.2 Passenger Traffic

According to sub-sector statistics, the overall international and domestic passenger handled steadily

increased by 105% from 1,206,821 in 2000 to 2, 470,127 in 2006. Of the 2, 470,127 passengers in

2006, 1,249,419 passengers were from Julius Nyerere International Airport (JNIA-Dar es Salaam),

which is about 51% of the over all total passengers handled countrywide as shown in Chart 6.1.

Chart 6.1: Annual Passenger Traffic 2000 – 2006

Sourc

e:

TAA/

TCAA



41

Aircraft Movements

Number of aircraft movements increased by 42% from 112,821 movements in 2000 to 160,766

movements in 2006. The traffic during this period increased steadily as shown Chart 6.2.

Chart 6.2: Aircraft Movements 2000 – 2006

Source: TAA/TCAA

6.4.3 Cargo Traffic

The cargo tonnage decreased by about 13% from 39,459 tons in 2000 to 34,524 tons in 2006 due to

among other factors, inadequate infrastructure and low export base. The decrease in cargo tonnage

during this period is shown Chart 6.3.

Chart 6.3: Cargo and Mails Tonnage 2000 – 2006

Source: TAA/TCAA

The reasons sighted being reduced export of fish fillets through Mwanza due to poor airport

infrastructure and limited exports through Mwanza airport to attract direct flight from European

markets. As the results most of the fish fillets from Mwanza are being transported by road to Nairobi

and Mombasa for export.

6.4.4 Achievements/strengths

Due to the sustained ongoing institutional reforms:

(i) The Tanzania Airport Authority (TAA) and Tanzania Civil Aviation Authority (TCAA)

were established which have increased efficiency in airport managements

Aircraft Movements 2000 to 2006

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Yr 2000 Yr 2001 Yr 2002 Yr 2003 Yr 2004 Yr 2005 Yr 2006

Overall

TAA

Cargo and mails Tonnage 2000-2006

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Yr 2000 Yr 2001 Yr 2002 Yr 2003 Yr 2004 Yr 2005 Yr 2006

Overall

TAA



42

(ii) Increased private sector participation in the scheduled market has been realized such that:

• In year 2002, the Government sold 49 percent (49%) of its shares to ATC to South

African Airline (SAA). However, the 49% has reverted to the Government (now 100%

Gov. owned shares) following the breaking of the contract between ATC and SAA.

• Precision Air is another major airline, but unlike ATCL, it is owned and managed by the

private sector. There are also other private airlines that also provide scheduled services

• One airport (Kilimanjaro International Airport – KIA) has been concessioned to KADCO

and more airports will be brought under the private sector or under public private

partnership.

6.4.5 Weaknesses / shortfalls of Air Transport

The air transport sub sector has the following major challenges/weaknesses/shortfall:

(i) Deficiencies in the provision of international air navigation services due to lack of

adequate navigational aids for the guidance of aircraft over flying its airspace and also for

those landing at some of the airports.

(ii) Inadequate airport facilities.

(iii) Low human resources capacity to adequately manage and operate the air transport

industry.

(iv) Inadequate airport planning and management skills.

(v) The Civil Aviation Master Plan (CAMP) that is in place does not accommodate the

changes in policy framework that have taken place nationally, regionally and

internationally.

(vi) Lack of knowledge of the emerging Economic Regulation concept, which is new in the

field of air transport.

(vii) Inadequate capacity in trained pilots and aircraft maintenance engineers.

(viii) Lack of a management system that will link the civil aviation headquarters and its centres

across the country that will ultimately be able to be integrated with the technical network

and be used for both data and voice transmission, so the importance of an efficient

management information system.

(ix) Manual collection and distribution of aviation data, does not match with the changing

technology.

6.5 Institutional and Capacity Building Measures

In the Transport Sector, during the period 2001/02-2005/06, the following achievements have been

made on institutional support and capacity building:

• The former Ministry of Communications and Transport and the former Ministry of Works and

their institutions under their jurisdiction continued to build skill of staff through training.

• The former MoW through ERB, NCC, CRB and AQSRB conducted several courses, seminars

and workshops for local consultants and contractors. ERB through SEAP trained over 350

young engineers. A construction Assistance Fund (CAF) was established. Establishment of a

Construction Industry Development Fund (CIDF) is being finalized.

• Training of small scale contractors in labour based technology through area-based

programmes funded by development partners.

• Regional Secretariat (RS) Engineers now in place in all regions.

• Number of civil engineers in councils substantially increased to 168.

• Capacity of supervision transport for council engineers has improved.

• The Government’s initiative to develop and implement the Local Government Transport

Programme with the aim to improve rural and urban accessibility in the entire network of

local government roads.

• As a result of the Central Tender Board being reformed to the Public Procurement Regulatory

Authority through the Public Procurement Act No.21 of 2004, ministries and its



43

institutions/agencies tender boards have been empowered unlimited capacity to award contracts of goods, services and works. This change has shortened the procurement process.

The Public Procurement Regulation Authority is now mainly responsible for: ensuring

application of fair, competitive and transparent procurement, harmonize the procurement

policies and monitor compliance of procuring entities.

6.6 Funds Allocation for the Past Five Years (2001- 2006)

Over the past 5 years the government with the assistance of development partners has invested

substantially in the transport sector particularly road sub sector. Railways, ports and airports

authorities have continued using their internally generated funds for capital expenditures with

minimum support from the government and donor community partly because most of their operations

were earmarked for privatization. On the other hand, the development partners contribution account

for about 50% of the annual budget allocations which has largely been directed to rehabilitation and upgrading of road sub sector with few funds directed to maintenance. The involvement of the private

sector in the infrastructure ownership and development has been growing gradually.

Generally, the financial support to transport infrastructure has been in three (3) categories. The first

category is the Government funds which are obtained through budget support and domestic revenues.

Second category is the contribution of implementing institutions raise from own revenues; and the

Third category is comprised of foreign funds (including loans and grants). Table 6.21 indicates funds

allocated to the transport sector between 2001/2 and 2005/6 (in TShs).

Table 6.21: Financing for transport sector - 2001-2006 (in TShs million)

Sub-sector 2001/02 2002/03 2003/04 2004/05 2005/06 TOTAL

MID Nil Nil Nil 100.0 150.0 250.0

Trunk and Regional Roads 154,200.0 210,610.0 218,500.0 276,030.0 359,090.0 1,218,430.0

Local Roads * 15,240 19,302 19,146 21,804 20,432 95,924

Railways 44,920.0 7,478.4 8,661.1 20,341.8 26,502.0 107,903.3

Airports 1,943.1 12,826.0 11,018.2 42,925.6 3,983.5 72,696.4

Ports 14,470.0 8,460.0 12,931.0 24,267.0 25,325.0 85,453.0

GRAND TOTAL 230,773.1 258,676.4 270,256.3 385,468.4 435,482.5 1,580,656.732.7

Source MID *Road Fund only

6.7 Issues for further consideration

The implementation of reforms in the transport sector is generally satisfactory. We are now

witnessing the overall good performance in the transport sector such as container handling in ports,

road development and maintenance. This is evidenced by good condition of roads network in most

regions and efficiency in container handling at the port of Dar es Salaam. However, there is still a

need for very close follow-up of some issues which need improvements and refinements particularly

but not limited to:-

• More emphasis on establishing Basic Rural Access to the rural population in support of the

MKUKUTA goals for poverty reduction and economic growth.

• Widening of internal revenue base in order to minimize development and maintenance

financing gap. On road maintenance funding, the measures being considered to broaden the

road fund base include introduction of ‘Access fees’ and re-introduction of ‘Heavy Vehicle

License fees’. In FY2007/08, the Road Fund fuel levy has been increased from TSh. 100 to

TSh.200 per liter as an initial measure to increase the Roads Fund level.

• Improving rural accessibility.



44

• Reducing congestion and pollution and improving mobility in urban areas.

• Modernizing the railway system making the sub-sector competitive.

• Increasing participation of local consultants and contractors in design and implementation of

development and maintenance works through appropriate training and packaging of works

and by increasing the amount of contracts to be tendered by the local industry only.

• Addressing properly crosscutting issues including environment, road safety, HIV/AIDS,

awareness campaign in transport sector activities, participation of women, youth, disabled and

other disadvantaged groups in the implementation of development and maintenance works.

• Continue utilization and promotions of use of Labour Based Technology in road works

• Continue with relevant and suitable capacity building programmes.

• Increase involvement of the private sector in rendering transport services.

• Further institutional reforms to facilitate efficiency in the transport sector.

• Rapid increase in traffic congestion and pollution in major cities and towns.

These issues will be appropriately addressed in the First Phase of the TSIP.



45

CHAPTER 7

7.0 SCOPE OF THE TRANSPORT SECTOR INVESTMENT PROGRAMME

(2007/08 – 2016/17)

7.1 Need for TSIP

ne of the 4th Phase Government goals is to ensure that there exist an adequate transport

infrastructure and services, which are key factors in Tanzania’s efforts to promote growth and

reduce poverty, as described in the MKUKUTA - the National Strategy for Growth and Reduction of

Poverty (June 2005). The MKUKUTA gives emphasis to increasing accessibility to economic and

social services. This not only promotes economic growth, but also improves the physical links

between people and services. This can lead to a direct improvement in well being of the people

through better access to health, education and other economic services. In rural areas, the MKUKUTA

emphasizes agricultural development, because agriculture remains the dominant sector in the

economy. It accounts for over 48% of the Gross Domestic Product; 80% of employment, and 55% of

total foreign exchange earnings of the country. However, the agricultural sector is characterized by

low productivity. As the majority of poor people lives in the periphery areas of the country in the rural

areas and is engaged in agriculture, unlocking the country’s potential for rural development is seen as

the key to making a substantial impact on poverty reduction.

A lot of effort is being made to enable Tanzania to leap frog to medium level economy. It is planned

that the economy should grow at 8% by 2008 and sustained at over 10% afterwards. The economic

reforms of late 1980’s led to an up surge in production of almost all export products, such as cotton,

sisal, coffee, cashew nuts, etc. However, some of these products could not reach markets due to

dilapidated transport infrastructure. This situation is not to be allowed to repeat.

National efforts are to raise the per capita income of USD 300 today to over USD 1,500 by 2025.

This is possible given the abundance of unexploited natural resources, largely due to inadequate

transport infrastructure. Sectors needing special transport attention as a prerequisite to support and

sustain growth are: Agriculture, Mining, Tourism, Manufacturing, Export as well as Internal Trade, and Social Services such as Education and Health.

About USD 132 billion is needed to maintain, on a sustainable basis, rehabilitate, upgrade the existing

transport network, and to expand infrastructure networks to bring accessibility standards to the level

of a middle income developing country. For this to be possible, the Government needs to invest at

least 8.4% of GDP in the Transport sector annually.

As Tanzania is serving other landlocked countries of the region, there is need to ensure that potential

transit traffic is not diverted to alternative routes (due to lack of investment in infrastructure and

services). Currently it has been observed that inadequate infrastructure and services in TAZARA and

TRC/TRL has:

(i) Caused diversion of traffic from them, and

Made some traffic to be diverted from the port of Dar es Salaam to alternative ports in the

neighbouring countries.

In drawing up the Transport Sector Investment Programme, the main goal is to ensure that the

transport sector facilitate other socio economic sectors to attain their aspirations and hence lead to

development and poverty reduction. The factors that have been considered in drawing up the

programme are:

2 Estimates from the on-going Africa Infrastructure country Diagnostic Transport: Roads, railways, Ports,

airports, Urban Transport by Vivien Foster and Robi Carruthers, World Bank

O



46

(i) Giving first priority to fully funding projects related to maintenance. All infrastructure that has been rehabilitated or upgraded and is therefore in maintainable condition will

have to receive full maintenance to ensure its sustainability.

(ii) Put in place key missing links on the key transport corridors and ensuring that all sections

on these transport corridors are rehabilitated/upgraded to ensure smooth flow of traffic

thereby promoting national integration.

(iii) Enhancing reliable all season access to rural and/or remote economic activity areas.

(iv) Facilitating the delivery of agricultural inputs to farmers and evacuation of produce from

the farms to increase yield and get prices so as to:

• Boost rural economy, and

• Bring down the level of rural poverty.

(v) Opening up all major population areas to modern economy, trade, and growth by

providing transport infrastructure and services to achieve the goals of the Vision 2025 by

giving deserving interventions in all trunk road sections. This means paving all the

remaining 5,000 Km during the 10 years of the TSIP.

(vi) Ensure that funding packages for implementation of special development plans and

programs are available. These plans and programmes are such as:

• Mini Tiger Plan;

• Corridor Development Programs;

• Export Promotion Plans;

• Local Government Reform Program, and

• Other similar programmes.

(vii) Give high priority to projects which will support manufacturing, mining, tourism, education and health. Similarly, high priority should be given to projects that are geared

to the development of the local construction industry. This not only limits the extent of

capital flight but will also enhance the local/national construction capacity

(viii) Bring on board projects related to sector regulation (in civil aviation, marine, railways,

and roads). Strengthening of regulations will assist to bring order in the development of

the sector especially with the increasing private sector involvement

(ix) Give priority to projects which will lead to promotion of export and key food crop production (meaning provision of good access to the key production areas). Transport

should be able to respond to the needs of the productive sectors. Therefore investments

and actions which have started to result into upsurge in production in agriculture, tourism,

mining, and manufacturing should be enhanced.

(x) Give priority to projects that support poverty reduction efforts, including increasing the

involvement of women in development and execution. Deserving consideration will be

given to transport infrastructure projects which are geared to prevention of environmental

degradation, HIV/AIDS, and which give due consideration to gender.

(xi) Conduct master plan studies so that longer-term projects can be prepared based on the

results of the studies. Examples are the Ports, Civil Aviation, Safety and Railways Master

Plans.

(xii) Give high priority to projects that will enhance exports. Examples include facilitation of

economic/export processing zones, airport-handling facilities, modernization of port

facilities, etc. This will further call for the need to easing of border crossing which has the

impact of increasing international trade and also give high priority to projects that

enhance regional trade and integration.

(xiii) Give high emphasis to actions which will enhance capacity building in strategic planning,

project planning, budgeting, data base development, monitoring and evaluation.

(xiv) Bring to minimum the growing urban mobility crisis. USD 0.5billion is estimated to be

lost in Dar alone annually-from loss in man hours, fuel consumption, and other vehicle

operating costs.



47

(xv) Balance the level of transport network, and hence good services, with that of other SADC and EAC member countries. By any standard Tanzania has the lowest road network (96 m

per square km) penetration or density in both SADC and EAC regions. Compare this

with:

• Uganda - 331 m per square km

• Kenya - 262 m per square km

• Lesotho - 233 m per square km

However, Tanzania needs to balance the challenge of additional network development with the need

to keep the existing network intact. This underlines sustained maintenance of the existing network as

the number one priority.

7.2 Maintenance of Existing Transport Infrastructure

7.2.1 Strategy

As a general principle, the TSIP will prioritize maintenance above improvements and capital works.

In this regard the strategy for maintenance will therefore be given first priority to the regular

maintenance of existing assets, which is usually of routine and relatively small-scale in nature.

Second priority will be given to periodic maintenance which is usually provided at intervals of several

years. These activities apart from generating modest economic returns, they are also important in prolonging the life of assets and contribute to its safety.

An important part of the TSIP is to balance the needs for maintenance with the available funding. In

this regard, the maintenance needs will be determined as well as the likely funds to be obtained from

the budgetary allocation. In addition, the financing level/gap will be analyzed including the way, and

when it is going to be closed. Roads maintenance is expected to be funded by the Government

through Roads Fund while other institutions in the transport sector will utilize their own generated

funds to carry the maintenance of their infrastructures. It is expected that for the first years of

implementation of TSIP, Development Partners may be required to assist in closing the maintenance

funding gap, when called upon.

7.2.2.1 Routine Maintenance

Routine maintenance for the different transport modes infrastructure can be summarized as follows:

• Roads: routine maintenance includes activities such as ditch cleaning, minor repairs to road

shoulders, pothole filling, and vegetation control. This is organized in different ways but is

often a continuous activity. In terms of priority, recurrent maintenance also falls into this

category, and includes activities required at a certain intervals in a year such as grading of unpaved roads.

• Railways: this includes the regular maintenance of the permanent way as well as the

preventative maintenance of rolling stock and the maintenance of buildings.

• Air transport: routine maintenance includes vegetation control on airfields as well as the

maintenance of buildings and air traffic navigational aids.

• Maritime transport: this covers the regular cleaning and maintenance of wharves and jetties

as well as the regular servicing and maintenance of cranes and other port equipment.

• Pipeline lines: this covers the inspection of pipelines, minor repairs, vegetation control and

regular servicing and maintenance of pumps and related equipment.

Except for roads, routine maintenance of infrastructure for other sub-sectors will be paid for out of

internally generated revenues. Routine maintenance for roads will be paid for from the Roads Fund

which will be the first priority for expenditure from the Fund.



48

7.2.2.2 Periodic Maintenance

Periodic maintenance is necessary at intervals of a number of years in order to prolong the life of the

infrastructure. These are generally more costly than routine maintenance activities. The interval

between these interventions can be estimated in advance, but may vary depending on the type of

construction, actual conditions of use and environmental factors. For roads, periodic maintenance

includes the regular resealing of paved roads and the re-gravelling of unpaved roads. Period

maintenance will be the second priority for expenditure from the Roads Fund. For other transport

modes, it includes the overhaul of equipment or repair of worn-out infrastructure. However, it does

not include the wholesale replacement, rehabilitation or refurbishment of infrastructure.

7.2.2 Road Network Maintenance

7.2.2.1 Maintenance Needs Projections (FY2007/07-FY2011/12)

The maintenance needs projections for the next five years for the road network has been made using a

combination of analysis tools (HDM4 for TANROADS and DROMAS for Local Government) and

conventional estimation methods which use unit costs, projected road condition and frequency or

schedules of interventions. The analytical tools were applied to determine periodic maintenance needs

while other needs for routine, bridges, emergency etc, a conventional method were used. The

maintenance needs for periodic maintenance were averaged from the five year analysis. The

maintenance needs for Trunk, Regional, District, Feeder and Urban roads are as shown in Table 7.1.

7.2.2.2 Road Maintenance Framework for FY 2007/2008 – FY2011/2012

During the first phase of the TSIP, periodic maintenance will be applied to roads which are in fair

condition in order to bring them back into good condition and as such extend their life span. In case of

roads whose periodic maintenance has been deferred to such an extent that they have deteriorated into

poor condition, these will have to be rehabilitated through the development programmes. The

rehabilitation will be continued until when the backlog has been eliminated and all roads are in

maintainable condition. Periodic maintenance for roads will eventually be fully paid from the Roads Fund. However, until the funding gap between total maintenance needs and Roads Fund revenues is

eliminated, periodic maintenance will be partly paid by the Roads Fund and partly by Development

Partners.

The Roads Fund is a principle source of funds for road maintenance while funds from Development

Partners support backlog maintenance and related institutional support activities. However, according

to existing Government budgeting procedures, the Development Partners programmes are included in

the development programmes and are therefore not considered as part of regular maintenance of

routine and periodic maintenance, bridge maintenance and emergency works which is carried out widely over the road network.

Table 7.1: Road Maintenance Requirements for FY2007/08-FY2011/12 (USD Million)

Activity

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/11

FY

2011/12

Trunk and Regional Roads

Routine Maintenance 22.577 23.000 23.423 23.845 24.268

Periodic Maintenance 84.811 84.811 84.811 84.811 84.811

Bridge Maintenance 5.370 5.391 5.412 5.433 5.454

Emergency Repairs 2.258 2.300 2.343 2.385 2.427

Spot Maintenance 2.046 1.842 1.637 1.432 1.228

Administration and Supervision 6.901 6.930 6.959 6.989 7.018

Non Works Activities 1.381 1.386 1.391 1.398 1.403

Sub-total million USD 125.344 125.660 125.976 126.293 126.610

District, Feeder and Urban Roads

Routine Maintenance 11.815 11.937 12.181 12.638 13.248



49

Activity

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/11

FY

2011/12

Periodic Maintenance 30.443 30.443 30.443 30.443 33.634

Bridge Maintenance 1.134 1.134 1.173 1.173 1.212

Emergency Repairs 0.782 0.782 0.782 0.782 0.782

Spot Maintenance1) 3.129 6.257 8.995 9.386 9.046

Administration and Supervision 4.418 4.404 4.458 4.504 4.888

Non Works Activities 0.000 0.000 0.000 0.000 0.000

Subtotal in million US$ 51.720 54.957 58.032 58.927 62.811

Total (All roads) in million USD 177.064 180.617 184.008 185.219 189.420 US$ = 1278.49 TShs

1) Envisaged to be financed by Development Partners

Source: TANROADS, TEMESA and PMO-Regional Administration and Local Government

Before FY2007/08, the level of funding for maintenance was about 40% of the maintenance needs.

However, in FY 2007/08 the Government took bold measures aimed at addressing maintenance

requirements. In this direction, the budget for FY 2007/2008 has increased by more than twofold from

USD 67.028 million in FY2006/2007 to USD 170.884 million in FY2007/2008 by increasing fuel

levy from USD 8 Cents to 16 Cents per liter. The approved budget for Roads Fund for FY2007/2008

is USD 170.884 million coming primarily from fuel levy. The amount includes USD 1.452 for

administrative cost of the RFB, USD 152.489 million for maintenance and USD 16.943 million for development programmes. Based on the current allocation formula between Trunk/Regional roads

and Local Government network of 70:30 and the anticipated roads fund collection, the projected

allocation of roads fund to the implementing agencies will be as indicated in Table 7.2.

The Government will continue to honor its commitment to fund road maintenance at the levels which are based on the estimates of maintenance needs in the next five years. If the funding level of

FY2007/08 is progressively increased by about 5% each year, the financing gap will be eliminated by

FY2011/12 for trunk and regional roads while for other roads it will be beyond FY2011/12 (Table

7.3). This is therefore a maintenance activity where additional support from development partners is

required in order to stabilize the paved road network.

Table 7.2: Projected Allocation to Implementing Agencies (USD million)

Allocations to Implementing Agencies Financial

Years

Total

Revenue RFB MoID TANROADS PMO-RALG

2007/08 170.884 1.452 11.860 106.742 50.829

2007/09 179.429 1.525 12.453 112.079 53.371

2007/10 188.400 1.601 13.076 117.683 56.040

2007/11 197.820 1.682 13.729 123.568 58.841

2007/12 207.711 1.765 14.416 129.746 61.784

Note: The figures for PMORALG include 10% for development works Source: RFB

Table 7.3: Projected Funding for the Road Network (USD Million) Financial Year Maintenance Needs Actual Funding Funding Level

Trunk and Regional Roads

2007/08 125.344 106.742 85%

2008/09 125.660 112.079 89%

2009/10 125.976 117.683 93%

2010/11 126.293 123.568 98%

2011/12 126.610 129.746 102%

District Urban and Feeder Roads 2007/08 51.720 45.746 88%

2008/09 54.957 48.034 87%

2009/10 58.032 50.436 87%

2010/11 58.927 52.957 90%

2011/12 62.811 55.606 89% Source: RFB



50

7.2.2.3 Allocation of Roads Funds among Local Authorities

Up to FY2006/07, 85% of funds allocated to the Local Authorities were based on equity criteria. This resulted in all the Local Authorities getting more or less the same amount regardless of differing

needs due to type of roads (paved/unpaved), road network lengths, type of area (urban/rural), etc. In

order to rectify this imbalance in addressing the needs of various local authorities, PMO-RALG and

the Roads Fund Board have developed a new allocation formula that is based upon the actual needs

i.e. taking into account network size and its condition. This has been made effective from FY2007/08

and some minor improvement of the formula will be agreed before FY2008/09.

7.2.2.4 Absorption Strategies to Match Increased Maintenance Funds

The maintenance funds of USD 152.489 million for FY2007/08 (excluding the USD 18.395 million

which is allocated for development works and RF administration) is quite substantial and poses a challenge to the implementing agencies which are to implement more road maintenance works and

utilize much of the allocated funds before end of the financial year in June 2008. This challenge will

have to be tackled even in the subsequent years as funding will be more or equal to the FY2007/08

level.

In order to overcome this challenge, the key players in the road sub-sector are required to implement

strategies which were proposed from the key stakeholders’ consultative meeting on this issue of

absorption capacity of the road fund allocations. In this regard, Table 7.4 gives actions that need to be carried out in the next three to five years.

7.2.3 Air Transport

The total routine and periodic maintenance requirements for TAA in phase 1 amount to USD 16.7

million. However the approved budget for FY2007/08 amounts to USD 3.87 million out of the

required USD 23.75 million for the same period, giving a financing gap of USD 13.24 million. The

approved amount s is from TAA own funds.

7.2.4 Rail Transport

The Tanzania Railways Corporation (TRC) has been concessioned. In that case it will be the

obligation of the concessionaire, Tanzania Railways Limited (TRL), to maintain the infrastructure.

The maintenance financing problems is expected to be solved, except the backlog maintenance

estimated at USD 10.37 million. This may, therefore, be regarded as the gap that exists for RAHCO.

Tanzania Zambia Railways Authority (TAZARA), on the other hand, has accumulated a backlog of

maintenance of USD 61.3 million.



51

Table 7.4: Actions needed to absorb the Roads Fund Allocations to Agencies

CHALLENGE KEY ISSUES STRATEGIES EXPECTED OUTCOME

Late preparation of budgets

leading to late procurement of

works

The RFB to issue preliminary budget

ceilings in January so that implementing

agencies can start advance procurement

Works implementation to start

in July each year

Lack of procurement plans

Implementing agencies should prepare

procurement plans by February of each

year aiming at completing 75% of works

by the end of June of the following

financial year

Minimize the amount of roll over funds to maximum of 25%

Lack of multi-year contracts

leading to more procurement

frequency


multi-year plans for maintenance works

This will enable having

contracts with periods of more

than one year and thus reduce frequency of tendering works

PMMR projects that could

absorb substantial funds have

taken too long to commence

PMMR contracts currently in pipeline

should be implemented quickly so that

funds allocated in the budget for the

contracts start to be utilized.

Will minimize roll over funds

Carriageway and roadside

works contracts are combined

hence taking time to complete

Separate carriageway and roadside works

to involve more contractors in all classes

This will speed up

implementation of maintenance

activities

Small scale contractors are

marginalized Implementing agencies should package

contracts according to scale of works

This will ensure that

contractors of all categories get work opportunities

Inadequate

Planning and

Procurement

Many small works contracts are

re-tendered repeatedly


long-term contracts

This will avoid having to re-

tender small works repeatedly.


Works start late due to long procurement process for small

works

PPRA should issue circular requiring implementing agencies to use quotation

method to procure contractors for small

works less than Tshs. 100 million.

This will enable works to start early and have most of them

completed before the end of the

financial year

Inadequate

Planning and

Procurement

Contractors fail to complete projects due to low contract

prices

PPRA should issue a circular providing guidance on evaluation procedures that

should consider unit rates

This will avoid having contracts awarded at very low prices

Inadequate capacity for local

contractors

PPRA should issue guidelines to require

Foreign contractors to enter into joint

ventures with local contractors

This will build up the capacity of

local contractors

Lack of outreach programmes Implementing agencies should advertise

business opportunities in road maintenance, equipment and related

works including procurement notice.

Contractors and suppliers will be

more aware of existing business opportunities.

Current tender documents are

too big and unsuitable for small

works

Implementing agencies should use the

simplified version of standard tender

documents issued by PPRA for small

contracts.

Small contractors will

understand the documents easily.

Implementing agencies do not

adhere to the Public

Procurement Act 2004 and its

regulations

PPRA and key stakeholders should

ensure that implementing agencies

adhere to the Public Procurement Act

2004 and its regulations

Transparency and accountability

will be enhanced

Inadequate

Planning and

Procurement

Some implementing agencies

use tender documents that are

not approved by PPRA

Performance Agreements should demand

compulsory use of standard tender

documents issued or approved by PPRA

Harmonisation of tender

documents will ease monitoring

of procurement process

Inadequate

Supervision and

Monitoring

There is weak oversight roles by

RFB, PMORALG, and

TANROADS

RFB, PMORALG, and TANROADS

Headquarters should strengthen their

oversight roles by improving monitoring and auditing.

Road Users will be assured that

there is value for money.

Shortcomings in

implementation are not captured

on time

A simplified reporting format for

monthly flash reporting should be

designed

This will facilitate arresting of

shortcomings on time instead of

waiting for quarterly reports

Funds are allocated based on

equity criteria especially for LGAs

RFB should ensure that funds allocated

to TANROADS and the LGAs are based on maintenance needs.

This will ensure that roads

needing maintenance get enough funds

There are no regulations that

govern proper use of funds

RFB should come up with regulations

that include penalties for poor

performance

This will ensure that there is

integrity in utilization of Road

Funds.



52


Inadequate

Capacity of

Contractors/

Consultants

Local contractors lack basic

construction equipment

Implementing agencies should

guarantee contractors to the Equipment

Suppliers so that they can buy equipment.

Equipment availability will

be increased.

Existing Road Workshops do not

have enough equipment

Existing Road Workshops should use

loans from financial institutions to

purchase more equipment for road

works.


be increased.

Local contractors have

inadequate financial capability

Implementing agencies should accept

landed properties, equipment and

insurance bonds as guarantees for

advance payments.

This will enable contractors

implement works quickly.

Loans are not easily accessible Government speeds up legislation on

leasing finance so that Banks can

provide loans to Contractors.

This will assist the private

sector and contractors

through their associations to

acquire equipment.

Various training programmes for

contractors/consultants are not

harmonized

Training programmes by ERB, CRB,

NCC, and TACECA for Contractors/

Consultants be harmonized and rolled

out to improve productivity and better

utilization of resources..

This will improve the

capacities of local

contractors and consultants

Loses in Revenue

Collections

According to the Financial Audit

report by the National Audit

Office Tshs.4.66 billion being

uncollected fuel levy was

observed during the FY 2005/2006.

A study to track fuel taxes will be

conducted from September 2007 with

the aim of finding out loopholes used to

evade paying fuel taxes including fuel

levy.

The study will also

recommend necessary

measures to plug the

loopholes and hence will

most likely increase the amount of revenue to the

Fund.

Local contractors lack basic

construction equipment

Implementing agencies should

guarantee contractors to the Equipment

Suppliers so that they can buy

equipment.


be increased.

Existing Road Workshops do not

have enough equipment

Existing Road Workshops should use

loans from financial institutions to

purchase more equipment for road

works.


be increased.

Local contractors have

inadequate financial capability

Implementing agencies should accept

landed properties, equipment and

insurance bonds as guarantees for advance payments.

This will enable contractors

implement works quickly.

Loans are not easily accessible Government speeds up legislation on

leasing finance so that Banks can

provide loans to Contractors.

This will assist the private

sector and contractors

through their associations to

acquire equipment.

Inadequate

Capacity of

Contractors /

Consultants

Various training programmes for

contractors/consultants are not

harmonized

Training programmes by ERB, CRB,

NCC, and TACECA for Contractors/

Consultants be harmonized and rolled

out to improve productivity and better

utilization of resources.

This will improve the

capacities of local

contractors and consultants

7.2.5 Marine Transport

Tanzania Ports Authority (TPA) appears to have overcome the problems of maintenance by setting

aside USD 31.0 million for FY2006/07 for the purchase of critical equipment and repair facilities.

Currently, TPA projections on maintenance cost are estimated at USD 14.5 million annually for the

first phase of TSIP.

7.2.6 Strategies for Bridging the Maintenance Funding Gap

In general, the following strategies are been proposed for addressing the funding gap in transport

infrastructure maintenance:

(i) For the road sub-sector, the financing gap will be covered by natural growth in fuel

consumption assumed to grow by 5% annually within the next five years; and in the medium-

term, the Government and the development partners are called upon to allocate additional

funds for maintenance to bridge gaps in the requirements until other proposed resources are



53

mobilised. Other areas to be looked at for improving availability of funds for road maintenance include:

• Local Authorities using funds from their own sources.

• Introduction of new fees for services.

• Examining the possibility of involving private sector participation in road

maintenance e.g. instituting Maintenance, Operate and Transfer Schemes for the

transport infrastructure.

(ii) Revenue generating agencies should have a better balance between operations, maintenance and investments. Deferring maintenance is in principle unacceptable.

(iii) Strategies for increasing Funds should go in tandem with capacity building to increase

absorption capability.

7.3 Development Programme

7.3.1 Selection Criteria

The criteria adopted for selecting infrastructure development projects under TSIP is based on the

following:

(i) Growth and poverty reduction – does the project contribute to the reduction of poverty? To

what extent can the project influence the overall increase of the GDP in transport sector?

(ii) Corridor development: to what extent can the project play the role of opening up the country?

(iii) Transit Trade facilitation: Can the project make use of the geographical advantages of

Tanzania as being a transit country for the neighbouring land locked countries?

(iv) Safety issues - the project which aims at improving safety issues in the transport sector is

justified for being selected

(v) Enhancing rural accessibility – a project, which is aimed at reducing problems of transport

and communication services in rural areas, is justifiable to be selected.

(vi) Enhancing urban mobility – Projects which are aimed at reduction of traffic jams and pollution and improvement of access to markets, service centers and unplanned settlements in

the urban areas are justifiable for selection.

(vii) National and Regional integration – Projects with national and region impacts are eligible

for being selected.

(viii) Public service obligation – Public service obligation is a service rendered at non-cost

recovery tariff for strategic, political, and social reasons by the government.

(ix) Cross cutting issues – Projects with due consideration to cross cutting issues such as

environment, HIV/AIDS and gender issues.

Projects selected for each transport sub-sector are given in Annexes 2 to 6.

7.3.2 Prioritization

Prioritization of projects selected for each transport sub-sector was carried out separately for each sub-

sector as described below.

7.3.3 Road Sector Prioritization of Projects

7.3.2.1 Goal

To facilitate road transport corridor development through construction, rehabilitation and

maintenance so as to have a smooth flow of goods and services and hence attract investment in

other sector.



54

7.3.2.2 Objective

To bituminize all unpaved trunk roads by year 2018 while at the same time ensuring that all

regional roads as well as key district and urban roads are sufficiently rehabilitated and maintained

to ensure smooth and safe flow of traffic. Efforts will be made to introduce new technologies for

unpaved roads, where appropriate, to have better and longer lasting roads than the gravel ones.

7.3.2.3 Prioritization of Trunk Road Projects

The scheduling of the works for trunk roads will adopt the following order of priority:

(i) Priority 1: Preservation of existing assets by carrying out routine & periodic maintenance

and rehabilitation works on the paved road network as and when determined by the

HDM- 4 Model;

(ii) Priority 2: Upgrading of gravel road sections along the corridors, giving highest priority to those sections carrying highest traffic first such as >500 AADT, >400 AADT, >300

AADT and >250 AADT in that order of priority; and

(iii) Priority 3: upgrading of paved urban road sections to decongest traffic

(iv) Priority 4: Social or security obligations projects which must be justified on a case by

case basis.

7.3.2.4 Regional Roads

The regional roads are prioritized based on the economic justification of the investment. The economic indicator adopted for the prioritization has been the Benefit/Cost ratio. All development

works showing such ratio greater than zero have been retained for implementation. The discount rate

was set at 6%. This discount rate has been used to take into account the overall development objective

set out by GOT, the Agriculture Development Strategy and the MKUKUTA.

The priorities were set as follows:

(i) The first priority is the elimination of backlog works.

(ii) The second priority considers the remaining roads selected for development (other than

those already prioritized under backlog works).

(iii) The third priority considers the balance of roads selected for development (other than

those prioritized under backlog works and first priority).

(iv) Road works not economically justified. The improvement of such works is decided

according to the level of programme and availability of funds.

7.3.2.5 Local Government Roads

The overall objective of the proposed investment programme for local roads is to support national

policies and strategies on rural development and poverty alleviation through capacity building and

development of the local transport infrastructure. In other words, the proposed investment programme

shall support the achievement of the Tanzania Development Vision 2025, the Millennium

Development Goals (MDGs), the MKUKUTA and the Rural Development Policies/Strategies.

It is believed that the best way to support rural development and poverty alleviation through improved

local roads is to implement projects that will improve access and mobility in rural areas as to facilitate the following key impacts:

(i) Increased income from the agricultural sector;

(ii) Opening up of potentially economic areas;

(iii) Improved health and educational level of the people; and

(iv) More time spent on productive activities and less on transport.



55

To improve access and mobility, the main strategy is to provide Basic Rural Access (BRA) for the major share of the population within as short time as possible rather than high quality access and

service level for the few. Thus, the main priority for the first five years will be to provide Basic Rural

Access in the entire network of District, Feeder and Urban Roads. BRA is the minimum level of

service required in the local roads network to sustain socio-economic activities in rural areas. BRA

Interventions are those with the least life-cycle cost to ensure reliable all-year passability for the

prevailing means of transport in rural areas (i.e. 2WD pick-up trucks) and average travel speeds of at

least 20 km/h.

In view of the above and the priorities for TSIP stated in chapter 7.3.1 the following criteria will be

used to select projects for the local government roads investment programme:

(i) Group 1: Projects that will facilitate Basic Rural Access on district and feeder roads.

(ii) Group 2: Projects that will improve village travel and transport, i.e. projects that will

reduce time, cost and effort by rural people to gain access to social and economic services

and facilities and domestic activities.

(iii) Group 3: Rehabilitation/upgrading projects on economically important district and feeder

roads, e.g. those that will increase agricultural production, increase farm gate prices and

open up new economically potential areas.

(iv) Group 4: Projects that will reduce congestion and pollution on urban roads, e.g. in Dar es

Salaam.

(v) Group 5: Projects in urban areas that will improve access to neighborhood services and market centres and unplanned settlements.

In the first five years of the TSIP, the main priority will be on projects facilitating Basic Rural Access

(BRA). The available funding should allow for BRA on most of the district and feeder roads by the

end of the first five year period. The VTTP will be expanded to all districts within the same period.

Within the constraint of available funding and implementation capacity, rehabilitation of district,

feeder and urban roads in group 3-5 will start and continue into the following five year period.

Further prioritization within the groups will be as follows:

(i) Projects in Group 1 ranking of projects will be done within each district using the cost-

effectiveness-indicator (CEI) relating investment to population served.

(ii) Projects in Group 2 will be prioritized by the communities themselves as reflected in their

comprehensive O&OD village plans.

(iii) Projects in Group 3 ranking will be done on economic bases reflecting reduced transport

cost and the estimated increase in production and income from the agricultural or any

other sector.

(iv) Projects in Group 4 will focus on enhancement of urban mobility will be implemented

with the intention to reduce traffic congestions in urban areas, particularly Dar es Salaam.

The projects also include among others, feasibility studies on:

• Use of other modes of transport other than roads (e.g. railway and water) in Dar es

Salaam and Mwanza; and

• Comprehensive urban transport plan for Dar es Salaam.

(v) Projects in Group 5 will be prioritized based on socio-economic criteria and community

participation.

The Dar es Salaam Rapid Transit (DART) Project, which is one of the institutional support projects

under PMO-RALG, is meant to improve commuter services in the urban areas in the City of Dar es

Salaam. It has gone through the inception and conceptual design stages and the implementation for

the same is scheduled to commence soon. This project has been designed in such a way that, issues

such as environmental pollution, provision of basic infrastructure including embarkation and

disembarkation platforms, waiting sheds for commuters and right of way for other types of traffic

have been considered in the project.



56

The first phases of the DART infrastructure development are estimated to cost USD 62.57million for the construction of roads in the main corridors totaling 63 km in the five years commencing in

FY2007/08. During the implementation of DART, projects for promoting multimodal transport will

be considered aiming at creating a modal linkage between different modes of transport in terms of

infrastructure and services.

7.3.4 Air Transport

7.3.2.1 Goal

TTo improve and expand air transport infrastructure to foster both domestic and international trade

and tourism.

7.3.2.2 Objective

The objective is to create conducive environments that will enable the promotion of private sector

participation to manage and operate commercially viable airports projects through concession of

the commercially viable airports and airstrips; reviewing of the existing legal issues and providing

incentives to strategic investors.

7.3.2.3 Prioritization of TAA projects

Prioritization and ranking of projects considers on-going projects first in case of additional funds

required to conclude these projects. This basically means all projects that are part of the Medium

Term Expenditure Framework (MTEF). Next to it are the proposed new projects, which are ranked in

order of their EIRR values based on the 1996 study, of which studies for 7 airports are in the process of being updated under the World Bank funding. For airports that have no studies, ranking is based on

the current traffic levels as well as condition of pavements at particular air ports, those to be upgraded

are prioritized higher than those in need of maintenance.

However, at particular airports in case of budget constraints priority for implementation will follow

the following order:

(i) 1st priority: Safety related projects such as pavements on runways, apron, taxiways,

airfield ground lighting system (AGL), fire tender, control towers including control

facilities and equipments etc.

(ii) 2nd

Priority: Security related facilities such as X-Ray machines, CCTV systems, and walk through metal detectors, security fences and security control related facilities and

equipments.

(iii) 3rd

Priority: Facilitation related facilities such as terminal buildings, aerobridges, escalators, air-condition systems.

(iv) 4th

Priority: Commercial related buildings and facilities such as aircraft maintenance

hangars, cold storage facilities, ground handling equipments, shopping and recreation

facilities etc. are not part of the proposed projects and are already dealt with though

private sector participation.

The above criteria for airports, not withstanding the issue of selectivity of type of intervention starting

with runway, aprons and taxi ways should be given top priority in as far as infrastructure investment

is concerned.

It should be noted that these priority order may change basing on the status of the airport

infrastructure as in Table 7.5.



57

Table 7.5: Summary of Prioritization of Projects at Particular Airport

Airport Pavements

(RWY/apron/taxi

way)

AGL, Fire,

Equipment

Security

Equipment

Facilitation

(Buildings, etc)

Julius Nyerere (DSM) 1st 3rd 3rd 2nd

Songwe Airport 1st 1st 2nd 3rd

Mwanza Airport 1st 3rd 2nd 2nd

Mafia Island Airport 1st 1st 2nd 3rd

Kigoma Airport 1st 1st 2nd 3rd

Arusha Airport 1st 1st 2nd 3rd

Bukoba Airport 1st 1st 2nd 3rd

Tabora Airport 1st 1st 2nd 3rd

Dodoma Airport 1st 1st 2nd 3rd

Singida Airport 1st 1st 2nd 3rd

Lake Manyara Airport 1st 1st 2nd 3rd

Shinyanga Airport 1st 1st 2nd 3rd

Musoma Airport 1st 1st 2nd 3rd

Tanga Airport 1st 1st 2nd 3rd

Mtwara Airport 1st 1st 2nd 3rd

Moshi Airport 1st 1st 2nd 3rd

Source: TAA

7.3.2.4 Prioritisation of TCAA projects

The Authority is facing various challenges as civil aviation regulatory body. These challenges

include:

(i) Lack of adequate air navigational aids for guiding aircraft flying in our airspace.

(ii) High operating cost resulting from hiring office premises.

(iii) Lack of strong Aviation Training Centre.

(iv) Shortage trained pilots and Aircraft Maintenance Engineers to support the growth of

aviation industry.

(v) Lack of Aviation Master Plan that accommodate changes in policy framework.

(vi) Lack of experts in field of Economic Regulation that is important for promoting aviation

industry.

(vii) Lack of Management Information System that links the headquarters and its centres

across the country.

(viii) Lack of Civil Aviation Statistics database that allows accurate and timely collection of

data.

Selection criteria and prioritization of the projects to be undertaken are based on the need to address

the above-mentioned challenges. The following projects are to be implemented in the first phase of the Transport Sector Investment Program (TSIP).

(i) Procurement of Air Navigational Aids Project: Provision of air navigation services for

guidance for aircraft using our airspace, it will enhance safety of our airspace.

(ii) Construction of Aviation House: Implementation of this project will enable the

Authority to reduce operational cost incurred on renting office premises, hence efficiency

and cost effectiveness.

(iii) Enhancement of the capacity of Civil Aviation Training Centre: Enhancing capacity

to provide training for local experts; Cost minimization for training experts abroad; and

Training centre will be also be used to train other experts from other neighbouring

countries.

(iv) Establishment of Training Fund: Currently, aviation industry is facing shortage of

trained personnel. The available experts are getting older and therefore there is a need to

have training fund to address the problem.

(v) Management Information System: The project will enhance Authority’s efficiency and

effectiveness through both data and voice transmission.



58

(vi) Civil Aviation Master Plan: The project will enable the Authority to review the policy framework to accommodate changes that take place nationally, regionally and globally.

(vii) Building Economic Regulation Capacity: The project will enable the Authority to have

adequate experts in the field of Economic Regulation. Three year training programme is

to be implemented, including short and medium courses of up to one year.

(viii) Civil Aviation Statistics Database: The Database will enable the Authority to have

timely and accurate data which is extremely important for planning. The Database will

enable operators to file key information on daily basis.

7.3.5 Railways

7.3.2.1 Goal

To rehabilitate, improve and expand railway network to enable exploitation of transport bulky

natural resources and evacuation of products especially where long distance transport is involved..

7.3.2.2 Objective

The policy objective on the railway transport is to improve and expand railway network to enable

the railway to play its role in the economic development of the country. The envisaged strategy to

achieve this objective among others is to:

(i) Facilitate private participation in the provision of interchange and interface facilities;

providing linkages (bridges, crossings) as well as locomotives and wagons for effective

transportation of goods, and

(ii) Undertake a Railway Master Plan study during Phase 1 of TSIP to determine the extent of

the network expansion and modernization.

Generally, for railways operational activities to be effective, acceptable availability levels in track,

communication performance indicators levels in track, communication, motive power and rolling

stock availability and rolling stock are critical.

7.3.2.3 Prioritization of TAZARA Projects

Records on performance indicators for TAZARA reflect levels on some areas to be far below the

acceptable limits thus calling for radical actions to reverse the trend (Table 7.6).

Table 7.6: TAZARA Operational Performance Indicator

Performance Indicator Required Standards TAZARA Actual

Track availability >95% 88.5%

Locomotive availability >75% 68.8%

Wagon availability >85% 68.2%

Coach availability >85% 70.0%

Communication channel availability >94%. 28.0%

Source: TAZARA

According to Table 7.6, TAZARA has been adversely hit especially in 4 areas viz. motive power,

rolling stock, track and communications. Therefore, the submitted projects by TAZARA in excess of USD 100.0 million are taking into considerations the fact that problems facing core business of the

organization are fully addressed. Prioritization of the TAZARA ensures that the impact of these

projects on the operational efficiency of TAZARA are complementing each other, and that failure to

perform by one component will greatly affect other areas in particular and the overall performance of

the organization in general. With the exception of the proposed new railway links project i.e. Lindi-

Mtwara-Makambako, Tunduma-Sumbawanga-Kigoma and Sumbawanga-Kasanga, all other

remaining projects are of rehabilitation nature along TAZARA line. In view of the above, execution



59

of TAZARA projects related to operational areas are treated as a package since each of the four components is in a dire/poor state.

7.3.2.4 Prioritization of RAHCO & TRL Projects

The first priority for Reli Asset Holding Company (RAHCO) is to enhance the load carrying capacity

of the trains by working on critical sections of the rail line including Makutupora -Saranda (km 546 –

km 568) section along the Tabora - Dodoma, which is the main capacity restriction point. Also,

capacity will be enhanced through extending loops in some stations for 30 wagons trains i.e. 13

stations on the central line, and introduction of Centralized Traffic Control between Morogoro and

Dodoma.

Other projects are the following:

• Develop other Inland Container Depots such as Mwanza, Kigoma, Tabora, etc.: Through

such inter-modal terminals, TRL will become a cohesive part of Tanzania transport services

catering for North South and regional traffic streams. TRL will indeed compete effectively

with road transport;

• Bridges rehabilitation;

• Signalling and Telecommunications investment;

• Purchase of equipments for depots (wagon maintenance).

7.3.6 Maritime Transport

7.3.2.1 Goal

To enable the economy use waterways transport as a cheaper type of mode and an alternative to

other modes for areas which border rivers, lakes and the ocean.

7.3.2.2 Objective

To develop, rehabilitate and maintain marine transport infrastructure and improve human

resources responsible for managing and operating the infrastructure and services.

7.3.2.3 Prioritization of Maritime Projects

Prioritization of Ports Projects considers On-going projects which are part of the Medium Term

Expenditure Framework (MTEF) are considered first, urgent rehabilitation and replacement projects,

and projects to be determined by the Port Master Plan Study. A summary of prioritization of ports

projects is given as follows:

(i) First Priority: Ongoing projects: rehabilitation and replacement of equipment at cargo

terminal, grain terminal operational improvement, Kurasini Oil Jet (KOJ) improvements,

improvement of marine services at DSM port, establishment of port community system,

implementation of ISPS code, navigational aids, improvement of Tanga and Mtwara ports

operations.

(ii) Second Priority: Critical rehabilitation and replacement of Single Point Mooring (SPM) and

pipeline, conversion of 2 berths at general cargo terminal to handle bulk carriers and

construction of Jetty on Mafia Island.

(iii) Third Priority: To be determined by Port Master Plan Study – The list of ports for the study

are rehabilitation of Mwanza port north, rehabilitation of link span and improvement of port

infrastructure on lake Victoria, Kemondo bay rehabilitation, dredging of DSM port entrance

channel, Lakes Tanganyika and Nyasa navigational aids, development of Mbamba Bay and

Itungi ports and Bagamoyo port construction.



60

7.4 Sub Sectoral Investment Requirements

7.4.1 Roads

The proposed investment for the period FY 2007/08-2011/12 will include development projects and

maintenance of trunk, regional, district, feeder, urban and community roads, and institutional

development and capacity building. Projects considered for the program include all ongoing projects.

The projects also include construction of the infrastructure for the initial phases of the Dar es Salaam

Rapid Transit (DART), procurement of six new ferries, rehabilitation of five existing ferries and their

maintenance. Others are construction of the Kigamboni and Kilombero bridges, road safety programs

and procurement of solar system for Dar es Salaam traffic lights. The total estimated cost is USD

3,845,467 million of which USD 2,984.91 million is for rehabilitation and upgrading of trunk and

regional roads, USD 630 million is for maintenance of trunk and regional roads, USD 15 million is

for procurement and maintenance of ferries, and USD 429 million is for the improvement and maintenance of local roads. Table 7.7 outlines required investment for trunk and regional roads while

Table 7.8 outlines the cost estimate for local roads for the first phase of the five years programme.

The proposed investment for local roads will provide Basic Rural Access in most of the 15,000 km of

district and feeder roads where reliable access is still a problem. The budget for the VTTP allows for

implementation of the Program in all districts.

Table 7.7: Investment Requirements for Trunk and Regional Roads (USD 000) S/N Project Description FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Planned Cost

1 Trunk Road Development (Upgrading/rehabilitation,

including Dar es Salaam Rapid Transit) Projects393,094 456,057 535,796 685,603 868,857 2,984,910

2 Trunk and Regional Roads Maintenance Works 125,344 125,660 125,976 126,293 126,610 629,883

3 Regional Roads Development

Projects 46,614 29,697 41,455 12,473 12,473 142,712

4 Rehabilitation and Procurement of

Ferries

7,144 0 0 2,811 2,811

12,766

5 Maintenance of Ferries 430 460 480 500 520 2,390

6 Kigamboni and Kilombero bridges 156 0 11,733 7,000 6,111 25,000

7 Maintenance of Bridges 5,281 5,301 5,322 13,245 14,091 43,240

8 Road Safety 391 575 785 795 820 3,366

9 Dar es Salaam traffic lights 0 600 200 200 200 1,200

TOTAL 578,454 618,350 721,747 848,920 1,032,493 3,845,467

Source: Ministry of Infrastructure Development

Table 7.8: Investment Requirements for Local Roads (USD 000)

S/N Project Description FY 2007/08 FY

2008/09 FY 2009/10 FY 2010/11 FY 2011/12

Planned

Cost

1 Establishing Basic Rural Access 5,866 11,733 19,554 22,769 22,769 82,691

2 Improved Village Travel and

Transport (VTTP) 1,075 782 782 410 412 3,461

3 Rehabilitation/upgrading of

economic rural roads

2,096

4,161

5,475 6,825 8,365 26,922

4 Reduced urban roads congestion 3,289.04 1,626.92 2,815.82 56.00 58.22 7,846

5 Improved urban roads access 462 923 1,385 2,154 2,923 7,846

8 Maintenance (routine/periodic and

bridges) 51,720.0 54,957.0 58,032.0 58,927.0 62,811.0 286,447

9 Capacity Building and Program administration

3,365 3,346 2,808 2,558 2,115 14,192

Total 67,873 77,529 90,852 93,699 99,453 429,406

Source: PMO-RALG



61

Map 7:1: Proposed Trunk Roads Projects for TSIP (Phase 1)

Source: TANROADS

Table 7.9 shows the total requirements for the road sector for both development and maintenance

programme for the first phase of TSIP.

Table 7.9: Summary of requirements for roads sub sector (USD ‘000)

Organization FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Planned Cost

TANROADS 578,454 618,350 721,747 848,920 1,032,493 3,845,467

PMO-RALG 67,873 77,529 90,852 93,699 99,453 429,406

Total 646,327 695,879 812,599 942,619 1,131,946 4,274,873

The details and the timings for implementation of the roads programmes are shown in Annex 2.

To achieve the road physical infrastructure projects set in the First Phase of the TSIP (2007/08-

2011/12), about USD 4,275 million have been estimated out of which USD 1,716 million or 40% has

already been committed or secured.



62

7.4.2 Air Transport Investment Requirements

In the air transport sub sector, aviation investment sub-programme covers among others the Tanzania Airports Authority (TAA) and Tanzania Civil Aviation Authority (TCAA). They include airports

infrastructure projects as well as economic projects to enable smooth management and operations of

the regulatory arrangements (Map 7.2). Timing and approximate costs for implementation of the

TAA projects is shown in Annex 4. The summary of financial requirements for Air Transport

maintenance and development projects for first phase of the TSIP are outlined in Table 7.10.

Table 7.10: Summary of Development and Maintenance Requirement for Aviation Sector (USD 000’)

Organization FY2007/08 FY2008/09 FY2009/10 FY2010/11 FY2011/12 Planned Cost

TCAA 3,775.86 5,410.30 4,461.57 1,130 1,130 15,907.73

TAA* 3,872 3,744 3,723 2,679 2,679 16,697

TAA 31,443 38,934 49,043 75,635 75,635 270,690

Total 39,090.86 48,088.3 57,227.57 79,444 79,444 303,294.73 Source: TCAA & TAA

TAA* - Maintenance requirement

7.4.2.1 Air Transport Regulation Investment Requirements

The issues listed in Table 7.6 will be addressed by TCAA during the first phase of the TSIP at a cost

of USD 15.91 million:-

(i) Addressing Deficiencies in the Air Navigation Field including procurement of Air

Navigation Aids;

(ii) Building Economic Regulation Capacity;

(iii) Civil Aviation Master Plan (CAMP);

(iv) Civil Aviation Statistics Data Base;

(v) Construction of Civil Aviation House;

(vi) Capacity Enhancement of the Civil Aviation Training Centre (CATC);

(vii) Establishment of Training Fund; Management Information System

Timing and approximate costs for implementation of the TCAA projects is shown in Annex 3



63

Map 7.2: Proposed Airports Projects for TSIP (Phase 1)

Source: TAA 7.4.1.2 TAA Investment Requirement

To achieve the air transport physical and security infrastructure development and maintenance

programmes set in the First phase of the TSIP (2007/08-2011/12) USD 303 million of which USD

15.91 million is for improvement of safety by TCAA and USD 270.7 million is for development and

rehabilitation of airports. Out of the total investment of USD 303 million, USD 168.47 million or

56% has already been committed or secured from internal revenue collection projections.

The private sector will be involved as much as possible in the management of the strategic airports.

Investments for increasing capacity in these airports will depend on the level of traffic generated

annually. Some Government financial support will be engaged to guarantee their safety operation and

service. The total estimated cost is USD 301 million.

Existing

Airports

Proposed Airport

Projects



64

7.4.2 Railway Transport

The total cost of the required development investment and maintenance requirement in the railway

sector in the First Phase of the TSIP (2007/08-2011/12) amounts to USD 763.351 million (Table

7.11), out of which USD 351.6 million or 37% has already been committed from the internal revenue

collection projections and other sources.

Table 7.11: Summary of Development Investment and Maintenance Requirement for the

Railways Sub sector (USD 000’) Financing

Requirement

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/11

FY

2011/12

Project

Cost (USD)

TRC 44,403.94 104,130.49 116,456.96 243,755.18 235,511.14 744,257.71

TAZARA 18,919.21 35,331.07 46,760.58 50,793.07 50,402.07 202,206.00

Total 63,323.15 139,461.56 163,217.54 294,548.25 285,913.21 946,463.71 Source: TRC & TAZARA

7.4.2.1 RAHCO and TRL Investment Requirement

The total amount required by RAHCO and TRL in the next five years of TSIP for investing into the

railway in terms of improvement of the railway infrastructure, maintenance of permanent way,

strengthening of operations and existing rolling stock and institutional support is USD 744 millions.

The Action plan to implement the proposed RAHCO and TRL development and rehabilitation

projects for the First Phase of TSIP is appended as Annex 5.

Recommended areas for investments in TRL network include; critical section of Makutupora to

Saranda (km 546 –km 568) between Tabora and Dodoma, which is the main capacity restriction point

in the Central line. About 6% of the total traffic does not touch the critical section. According to

recommended levels of investment required to increase capacity through the Transport Infrastructure

Master Plan study for Tanzania Mainland year 2002; the investments to increase capacity lies on the

enhancement of RAHCO line infrastructure through extending loops in some stations for 30 wagons

trains; 13 stations on the Central line and also introduction of Centralized Traffic Control between

Morogoro and Dodoma.

Furthermore, in order to increase future capacity for Inland Container Depots (ICD), other Inland

Container Depots at Mwanza, Kigoma, Tabora, Morogoro and Arusha will be developed in the first

instance followed by others at Tanga, Shinyanga, Arusha, Dodoma and Mpanda. It is considered that,

through such inter modal terminals; it will be possible for TRL to become a cohesive part of Tanzania

transport services catering for North South and regional traffic streams as well as historical port of Dar es Salaam to the hinterland traffic. This will also help TRL compete effectively with road

transport. In line with the concession agreement, the Government and the Concessionaire will fund

the investment required for infrastructure improvement and rehabilitation to lead to higher business.

Other areas for future investments in TRL in the first phase of the programme are the following

categories:

• Permanent way and bridges rehabilitation;

• Signaling and Telecommunications investment ;

• Purchase of equipments for depots (wagon maintenance).

Furthermore, several feasibility studies will be conducted during implementation of TSIP as follows:

• Feasibility study Isaka - Rusumo - Kigali Railway

• Railway Master Plan Study

• Feasibility Study of Arusha –Musoma line

Maintenance requirements for RAHCO Line in the first phase of the TSIP add up to USD 105 million

as shown in Table 7.12.



65

The Government plan after the first phase of the programme is to build new railway lines to carter for increased demand. The lines will include a link between Burundi and Rwanda (Kigali) to the TRL at

Isaka and a new transit route for Uganda traffic to Tanga via Musoma (lake services) and Arusha

(new railway). The above proposed additional railway infrastructures will provide land locked

countries with the capacity of moving 60% of their traffic. Traffic generated from the new railway

line will justify Tanga to a deep –water port from a lighterage port. Likewise, with the new railway

infrastructure after just completed concessioning of TRC and later TAZARA, the two railway lines

will be party to the provision of tourist services through private sector train operators.

Table 7.12: TRL Maintenance requirements for first phase of the TSIP (USD 000’) YEAR FY2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Total

Maintenance

Requirements 11,732.59 20,195.54 20,695.55 4,345.18 28,031.14 105,000

Source: RAHCO

7.4.2.2 TAZARA Investment Requirement

The total investment required for short, medium and long term investment programmes of TAZARA, including its railway infrastructure, strengthening of its operations and institutional support is

estimated at USD 202 million. The Action Plan to implement the proposed TAZARA development

and rehabilitation projects for the First Phase of TSIP is appended as Annex 6. What may be noted is

that TAZARA is jointly owned by two governments of Tanzania and Zambia. Modalities for

mobilization of funds and implementation of projects need to be worked out.

TAZARA will proceed with replacement of aged assets, to cater for traffic growth particularly heavy

mineral traffic (coal deposits etc). It will also proceed with investments geared towards increasing container handling facilities to meet the private sector development of container transfer terminals

requirements The increase in traffic levels, will necessitate the introduction of automatic train

stopping equipment at all stations and on all locomotives to enhance safety and avoid collision.

Furthermore, TAZARA will build two new lines to provide links between the Southern part of

Tanzania (including the Mtwara Corridor), TAZARA, the Central Corridor and the Great Lakes

Region through ports along Lake Tanganyika (Map 7.3). The completion of these two lines shall

facilitate the tapping of the mineral rich potential of Liganga and Mchuchuma iron and Coal ores

respectively to the outside market and hence effectively support the market growth requirement of the region i.e. Tanzania, Malawi, Zambia and the Great Lakes Countries. Creation of new jobs is also

expected from these new lines.



66

Map 7.3: The Proposed and Existing Tanzanian Railway Network

A= Central Line

B= Tanga Line

C = Link Line

D=Mwanza Line

E=Mpanda Line

F = Singida Line

G = Kidatu Line

Source: MID

TAZARA Maintenance requirements for first phase of the TSIP are shown in Table 7.13.

Table 7.13: TAZARA Maintenance requirements for first phase of the TSIP (USD 000’)

Source: TAZARA

7.4.3 Maritime Transport Investment Requirement

To ensure that the maritime sub-sector development is harmonized and an integrated development is

achieved, TPA intends to conduct a Strategic Port Master Plan study which will determine the short

and long term developmental requirements. The study will cover all ports, i.e. sea ports and inland

waterways ports. It is expected that implementation of projects identified in the Master Plan will

commence during the first phase of TSIP. For the First Phase of the TSIP (2007/08-2011/12), about

USD 457 million (Table 7.14) has been estimated out of which USD 239 million or 52% has already been committed from the internal revenue collection projections and other sources. Map 7.4 shows

the proposed Tanzania Ports Authority Projects for TSIP (Phase 1) while the Action Plan to

implement the proposed TPA components for the First Phase of TSIP is appended as Annex 7.

YEAR FY2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Total

Maintenance

Requirements 10,775.21 8,614.07 9,442.58 10,444.07 10,444.07 49,720.00

Makambako

Mchuchuma/Liganga

Mtwara

Musoma

Sumbawanga

Kigali

Lindi

Proposed Line

Kasanga Port



67

Table 7.14: Summary of Development Investment and Maintenance Requirement for the

Marine Sector – Phase 1 of TSIP (USD ‘000)

S/N Project Description

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/11

FY

2011/12

Amount

(USD)

1 Development Projects 45,088.35 97,680.20 96,716.60 73,111.57 71,734.08 384,330.80

2 Maintenance of Port Facilities

and Infrastructure 7,117.77 16,865.99 17,709.29 15,403.47 15,403.48 72,500.00

TOTAL 52,206.12 114,546.19 114,425.89 88,515.04 87,137.56 456,830.80

Source: TPA

The principal objective of the programme is to undertake carefully identified projects, which will

sustain continuous growth of port traffic, cope with shipping technological changes and increase

efficiency and productivity of the port sector. The programme is also intended to ensure the

sustainability of compliance with regard to Security and Safety requirements, to provide better outlet

to foreign markets for landlocked countries, restore capacity lost through deterioration of facilities in

the inland ports and human resource capacity building.

Furthermore, the present condition of some of the port facilities requires immediate attention in order to maintain the terminals’ capacity and level of service. Some will require capital for rehabilitation

due to the fact that the concessioning of most of the coastal ports like Tanga, Mtwara and Mafia as

well as inland water ports like Mwanza and Kigoma are unlikely to occur in the short term. There has

been large increase of the container traffic at the port of Mtwara. With the development of the Mtwara

Corridor, the traffic is going to increase rapidly and therefore studies to determine the level of

infrastructure required will definitely be undertaken. The same intervention will be required for the

port of Tanga. Similarly there is an immediate need for improvement of the basic port facilities in Mafia Island port. Also, a number of cargos handling equipment and floating craft to supplement the

existing fleet will be acquired

Parallel to the privatization plan for the Marine Services Company Limited (MSCL), there is an

urgent need for infrastructure rehabilitation investments for the inland ports particularly on the Link

span, Slipways and dredging at Mwanza North, Kemondo Bay, Musoma, and Kigoma port.



68

Map 7.4: Proposed Tanzania Ports Authority Projects for TSIP (Phase 1)

7.5 Institutional Support

Projects focused on institutional support of the transport sector will act as a lever to strengthen

capacity building, and, hence, speed up the transport sector growth through institutional support.

The areas of focus include strengthening transport sector in the collection and processing of transport

data, transport policy development, strategic planning, coordination, evaluation and monitoring and

strengthening capacity in decision making. These will require investments in human resources and

technological development e.g. ICT, meteorology, etc. The essential requirement is to have an

interfacing knowledge sharing and equipment interface, effective and efficient medium of information

exchange. Investment requirement for institutional support development and human resources

capacity building is summarized in Table 7.15. The total cost required for institutional support and human resource capacity building for the transport sector amounts to USD 157.57 million.

Source: TPA

11.. RReehh.. ooff MMwwaannzzaa PPoorrtt NNoorrtthh

2. RReehh.. OOff KKeemmoonnddoo bbaayy

Mwanza Kemondo Bay

1. Improvements to Tanga Port

1. IInnssttaallllaattiioonn ooff nnaavviiggaattiioonn

AAiiddss LLaakkee TTaannggaannyyiikkaa

11.. DDrreeddggiinngg EEnnttrraannccee

cchhaannnneell

&&iimmpprroovveemmeennttss ooff

tthhee PPoorrtt

22.. GG//CCaarrggoo TTeerrmmiinnaall ––

iinnffrraassttrruuccttuurree &&

ssuuppeerrssttrruuccttuurree

33.. GGrraaiinn tteerrmmiinnaall

uuppggrraaddiinngg

44.. PPoorrtt CCoommmmuunniittyy

SSyysstteemm

55.. IISSPPSS ccooddee

iimmpplleemmeennttaattiioonn

66.. KKOOJJ IImmpprroovveemmeenntt

77.. IImmpprroovveemmeenntt ttoo

MMaarriinnee SSeerrvviicceess 8. UUppggrraaddee

NNaavviiggaattiioonnaall AAiiddss

aalloonngg ccooaassttaall wwaatteerrss

CCoonnssttrruuccttiioonn ooff MMaaffiiaa

JJeettttyy

1. Nav. Aids Lake Nyasa

2. Construction of piers at Mbamba Bay

and Itungi

Itungi

Mbamba bay

1. Improvements to Mtwara

port

Mtwara

Kasanga



69

Table 7.15: Investment requirement for Institutional Support Development and Human

Resources Capacity Building (USD)

S/N Institution FY 2007/08 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Amount

1 MID 13,000,000 13,000,000 13,200,000 13,200,000 13,250,000 65,650,000

2 PMO-RALG 4,971,801 3,402,451 2,854,930 2,600,724 2,150,975 15,980,882

3 TANROADS 5,679,168 4,267,691 2,630,032 1,482,233 664,847 14,723,971

4 TAA 425,000 494,000 483,000 278,000 370,000 2,050,000

5 TCAA 1,900,000 4300000 1600000 1050000 800000 9,650,000

6 TRC** - - - - - 0

7 TAZARA** 155,602 2,444,290 977,716 - - 3,577,067

8 TPA** - - - - - 0

9 TMA 1,848,142 3,609,339 1,834,984 1,815,195 3,353,340 12,461,000

10 SUMATRA 100,000 150,000 200,000 300,000 350,000 1,100,000

11 ERB 960,000 1,200,000 1,400,000 1,700,000 1,920,000 7,180,000

12 CRB 200,000 250,000 300,000 375,000 500,000 1,625,000

13 NCC 4,090,000 4,480,000 5,000,000 5,495,000 6,020,000 25,085,000

14 RFB 260,056 236,806 153,622 145,000 140,000 935,484

15 AQSRB 286,000 286,000 286,000 286,000 286,000 1,430,000

16 Training

Institutions 5,000,000 5,000,000 5,000,000 5,000,000 5,000,000 25,000,000

Total 28,969,198 33,906,145 30,546,606 30,842,095 33,307,030 157,571,074

** Institutional support costs covered in sub sector investment requirements Source: MID

7.5.1 Human Resource Development

Enhancement of technical and managerial capacity in the transport sector is of paramount importance

in order to enable the sector acquire necessary skills to face the global challenges posed by the

development of science and technology. Short and medium term programs for training transport staff

have been earmarked as well as long term courses. For the long term course, consideration has been

given for specialized professionals required by the sector for future planning. Such long term courses

are directed to areas like training on the transport planning/economics, Statistician, transport

engineering/management and policy formulation etc.


Training institutions within the transport sector are an important area considered for funding by the

program. Areas of concern by these institutions include; improvement of library facilities and building

structures; training the training staff; strengthening of curriculum development, etc. Such institutions

include the National Institute of Transport, Dar es Salaam Maritime Institute, Morogoro Works

Training Institute, Civil Aviation Training School, Bandari College, Tabora Railway Training

College, Mbeya Appropriate Technology Training Institute and Kigoma Meteorological College.

7.5.3 Data Base Development

The Ministry of Infrastructure Development plans to have a database for purposes of monitoring and

evaluation of the the sub sectors of transport, communications and meteorology. The data base will

include software and hardware (computers, server and lap tops), linkages through the Internet and

designing a data web page in the Ministry’s website. The issue of data base sustainability in terms of

human capacity development will also be addressed.

The performance of TSIP needs to be monitored and verified with support of some form of data. In

the course of these verifications, in the case of establishing what the trends in the development are,

data is necessary as a guidance to draw the necessary correct conclusions. Data and statistics are



70

required to express the trends to both the government and general public including the donors. This will enable carrying out objectively policy formulation and strategic planning, make corrective

decisions where necessary and link the trends of these developments with the development and

performance of other socio-economic sectors. Reliable information and statistics in this case will form

the basis of sound decision making.

7.5.4 Capacity Building of Local Consultants and Contractors

Under the ongoing reforms, several measures have been undertaken to ensure availability and

sustainability of local technical and managerial capacity to man the transport sector. Under TSIP,

local consultants and contractors will be continually assisted and empowered to perform their duties at

international levels. Review of skills enhancement training programmes to meet needs of local capacity building is also in progress.

7.6 Cross Cutting Issues

The total cost required for Cross cutting issues for the transport sector amounts to USD 53.50 million

out of which USD 3.30 million or 6% has already been committed or secured. The cost of carrying

out this cross cutting issues is summarized in Table 7.16:

Table 7.16: Investment requirement for the Cross Cutting Issues

S/N Project Description FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/11 FY 2011/12

Amount

(USD)

1 HIV/AIDS 500,000 500,000 500,000 500,000 500,000 2,500,000

2 Safety Issues 391,086 1,173,259 1,564,345 13,435,655 13,435,655 30,000,000

3 Gender mainstreaming 200,000 200,000 200,000 200,000 200,000 1,000,000

4 Environment issues 4,000,000 4,000,000 4,000,000 4,000,000 4,000,000 20,000,000

TOTAL 10,700,000 10,700,000 10,700,000 10,700,000 10,700,000 53,500,000 Source: MOID

More information on support required in the institutional strengthening area is provided in Annex 8.

7.6.1 Safety & Security

Success of the modern transportation system depends on how it can guarantee high level of safety and

security of passengers and freight transported. The main factors identified that contribute to safety

problems are:

• Poor enforcement

• Inappropriate and ineffective institutional set up

• Weak mandatory inspection system

• Inadequate skills among operators

• Insufficient public awareness of safety elements

• Lack of comprehensive safety consideration during design

• Inadequate navigational and communications facilities

• Axle load control

Safety matters in the transport sector are managed by various institutions. These include:

(i) The Surface and Marine Transport Regulation Authority (SUMATRA) is responsible for

regulating safety, security and environment in the regulated sectors; i.e. road, rail and

maritime transport. It is the duty of an authority to promote safety, security and minimize

environmental degradation in the surface and maritime transport sector.

(ii) Tanzania Civil Aviation Authority (TCAA) is responsible for the oversight of safety and

security of the aviation sub-sector by ensuring that the international standards are complied

with in accordance to the Convention on International Civil Aviation.



71

(iii) Road Safety Unit (RSU)

(iv) Other Institutions involved in the safety issues are; Ministry of Finance, Ministry of Human

Security and Safety, Ministry of Justice and Constitutional Affairs, Ministry of Healthy,

Ministry of Education and Vocational Training, National Road Safety Council, etc.

Investment required for enhancing safety issues include:

(i) Safety awareness covering all the modes of transport.

(ii) To assist in analyzing regulations and issues governing safety issues, the following issues will

be taken into account:

• Safety of the transport facilities

• Transport facilities operators training, testing and licensing

• Traffic management

(iii) Strengthening capacity of institutions involved in safety matters.

(iv) Establishing an institute which will cover, among others, the following:

• Search and Rescue Operations

• Trauma Management

• Accident Investigation and Accident Prevention

7.6.2 Environmental Issues

Transport activities and operations if not well managed can have impact to environment in different

ways. Land degradation, involuntary resettlements, air, soil and water pollutions are some of transport sector impact to environment.

Investment required to ensure sustainable and safe transport operations include:

• Establishment of an effective environmental unit within MOID manned by qualified

personnel;

• Review of the sub sector laws and ordinance to include environmental section;

• Preparation of transport sector environment management tools (guidelines, regulations,

standards, EMP, etc);

• Conduct training, workshops and seminars on environmental management to

stakeholders; and

• Purchase of equipment for environmental monitoring in the sector.

For close follow up, a full directorate for safety and environmental issues has been proposed under the

new organization structure of MOID.

7.6.3 HIV/AIDS

Investment is required on:

• Undertaking situational analysis to determine if and how transport activities are related

with issues such as spread of HIV/AIDS.

• Conducting training/educational programs for all transport stakeholders on how to combat

HIV/AIDS epidemic.

• Conduct awareness campaign on HIV/AIDS through EIC (Education, Information and

Communication)

• Training Peer Educators and TAC members to equip themselves with necessary skills for

prevention of HIV/AIDS/STIs.



72

7.6.4 Gender Mainstreaming

Vulnerable group suffers a lot from transport problems all over the country. Traditionally women are more active in the day to day economic activities especially in the rural areas. They spend most of

their time walking long distances to find social services like health, energy (firewood), water and

other economic services. Due to lack of well developed transport system in the rural areas, socio

economic services tend to be scarce and unaffordable.

In order to alleviate gender transport related problems, the proposed investments are:

• To undertake studies on gender segregations in the sector and advice actions to be taken,

• Enable vulnerable groups participate effectively in the transport activities so as to

improve their income,

• To increase the participation of women in management and operations of the transport

sector through training and empowerment,

• To promote cheap non-motorized means of transport (NMT) technology as a cost-

effective transport like cats, bicycles and tricycles.

7.7 First Phase Transport Sector Investment Programme Requirement

The cost for components of the Transport Sector Investment Programme (TSIP) First Phase running

from 2007/08 – 2011/12 are summarized in Table 7.17.

Table 7.21: Summary of the Transport Sector Investment Requirement (USD Millions) Phase 1

of the TSIP.

SN

Programme

Component

FY

2007/08

FY

2008/09

FY

2009/10

FY

2010/11

FY

2011/12 Total

1 Roads 646.3 695.88 814.60 965.62 1,106.95 4,229.37

2 Air Transport 39.09 48.09 57.23 79.44 79.44 303.29

3 Railways 63.32 139.46 163.22 294.55 285.91 946.46

4 Maritime Transport 52.21 114.55 114.43 88.52 87.14 456.83

5 Institutional Support 28.47 33.91 30.55 30.84 33.31 157.57

6 Cross Cutting Issues 10.70 10.70 10.70 10.70 10.70 53.50

Grand Total 840.09 1,042.59 1,190.73 1,469.67 1,603.45 6,147.02

Source: MID

To achieve the transport sector physical infrastructure development, maintenance and institutional

development programmes set in the First Phase of the TSIP (2007/08-2011/12), about USD 6,192.52

million have been estimated out of which USD 2,475.17 million or 40.0% has already been

committed or secured. Therefore the identified funding gap in this programme is about USD

3,717.35 million or about 60.0%. The financing gap will be bridged by Government revenues, donor assistance, loans from financial institutions and the private sector. The financing of TSIP will enable

the attainment of the MDGs, National Vision 2025, MKUKUTA and the National Transport Policy.

According to a World Bank on-going Study entitled Africa Infrastructure Country Diagnostic:

Transport: Roads, Railways, Ports, Airports, Urban Transport3, it is estimated that Tanzania will

need to invest at least USD 12,989 million in order to meet the basic scenario i.e. accessibility

standards applicable to developed and Middle Income developing countries that will increase Tanzania’s competitiveness of the economy and to improve social cohesiveness. Therefore, the total

TSIP investment of just about USD 6,000 million in five years is about 46% of the investment

required. This implies that Tanzania will have to sustain this level of investment in the next 10 to 15

years to be able to meet the basic scenario objectives. Furthermore, the report noted that Tanzania will

3 Findings of the on-going Africa Infrastructure Country Diagnostic Transport: Roads, Railways, Ports,

airport, Urban Transport by Vivien Foster and Robi Carruthers, World Bank presented at the SSATP

Annual General Meeting in Ouagadougou, Burkina Faso 5-7 November 2007.



73

need to spend at least 8.4% of GDP to sustain this level of investment. Consequently, the Government wishes to call on the developing Partners and the Private sector to increase their level of

investment in the transport sector as the study recommended that Government can affordably invest

into the Transport Sector only 8.4% of GDP (USD 1,857 million -2006 estimate) equivalent to

USD156 million annually.

7.8 Public Private Partnership (PPP) in the implementation of TSIP Option

During the implementation of TSIP, involvement of private sector in the development of transport

infrastructure through public private partnership (PPP) concept in areas where the private sector can

easily invest alone or in partnership with the public sector is a must. PPP is being considered as a

unique option for engaging private sector capital in the improvement of transport infrastructure and

services, through a sense of share of investment risks with the public sector. While investment into

the roads sub-sector infrastructure will remain mainly the responsibility of Government and

Development Partners, it is expected the other sub-sectors such as seaports, airports, and railway will attract heavy investment from the private sector.

Consequently, partnership between the government and appropriate qualified private sector i.e.

operator/agency/group of agencies for the purpose of financing, designing, constructing and or

operating infrastructure or services will be given a chance as a major alternative for securing funds

for the implementation of TSIP. Different forms of PPP are being thought along the transport modal

investments that will be encouraged, by ensuring that the roles and responsibilities as well as shares

of risks of each party are well defined and the financial rewards have been appropriately realized.

The different forms of PPPs to be applied in the implementation of TSIP are: Service Contract and or

Management Contract between the government and the service operator, Leasing of assets, Joint

venture between private sector and the government, BOT, Concessions, BOO or divestiture.

In the ongoing privatization of public operational entities, the Government has already managed to

transfer various operational entities to the private sector in the form of PPP. Such operations include;

Dar es Salaam Container Terminal which was concessioned to a private company (i.e. TICTS). The

Container Terminal is now operating under leasing contract between the government and the private

operator. The other facility is the Kilimanjaro International Airport whose operations were

concessioned to a private operator, Kilimanjaro Airport Development Company (KADCO). Tanzania

Railway Corporation has been concessioned to M/s RITES of India. The Air Tanzania Corporation of whose shares of about 49% were sold to a private company i.e. South African Airways (SAA) had the

marriage lasting for just a short while and the partner (SAA) has withdrawn.

More investment opportunities in the form of PPP are sought along the line of TSIP implementation.

Such predicted areas of investment are:

• Road infrastructure through construction of roads of which were sighted to sustain

financial feasibility (i.e. through BOT);

• Building of bridges and or fixed/mobile ferries; charging of toll roads for the well

financial generating roads;

• Construction of airports and fixing of some airports/ports facilities under BOT. The

airport projects include those on the airside as well as those on the landside.

• Rehabilitation and construction of new maritime port facilities; and operations

• Rehabilitation and construction of new rail facilities; and operations

• Establishment of the commuter city bus transport companies; Partnership among private

operators to create medium-size commercial fleet operators;

• Provision of infrastructure facilities for major cities like Dar es Salaam, the facilities may

include Parking facilities, Bus Bays and shelters etc.



74

The focus of government on TSIP is to attract as many investors as possible during its implementation period. The financing modalities under TSIP have been identified to include; Government revenues,

donor assistance, loans from financial institutions and private sector participation through:

• Projects purely financed by government revenues

• Projects financed through a combination of GOT and development partners

• Projects financed through a combination of Government, development partners and

private sector under Public – Private Partnership (PPP)

• Projects financed through loans

• Full participation of the Private sector in execution of TSIP projects

In order to enable PPPs become a dynamic issue in the transport infrastructure in Tanzania, various

strategies are being undertaken including; the process of preparing an institutional framework on

PPP issues for procuring PPPs, formulating policy guidelines for the PPPs and the technical

guidelines for preparing PPPs under Tanzania’s public Procurement framework. This will pertain to

the legal, procedural and institutional issues for PPPs that would partly need to be resolved as Public

Procurement Act, 2004 under Section 59 (3) of Public Procurement Act has narrowly addressed on

the PPPs.

Under PPP modalities, it is expected that more investors will be encouraged to put more resources in

the transport development projects through partnership with the public sector. Most importantly, the

Government will ensure that, selection of a PPP projects has adequately matched with the public

sector objectives for partnership and risks sharing were strictly made manageable.

7.9 The impact of the Proposed TSIP on MKUKUTA

Under the National Strategy for Growth and Reduction of Poverty, the transport sector has been

identified as one of the key sectors that contribute toward poverty reduction. The National Strategy

for Growth and Reduction of Poverty (NSGRP) is a second organizing framework for putting focus

on poverty reduction in the country’s development agenda which builds on the Poverty Reduction

Strategy Paper (PRSP) implemented during 2000/01 – 2002/03.

Poverty remains overwhelmingly in rural areas where about 87% of the poor population live, and is

highest among households who depend on agriculture. The targets of NSGRP are a reduction to 24%

by 2010. This will require an accelerated growth of 6.8% in GDP.

Transport sector contributes directly and indirectly towards poverty reduction directly by providing

off-farm employment opportunities to the poor and indirectly by playing a complimentary role in

stimulating production activities and improvement in the social services. The details are outlines below.

Employment Creation

Some impact studies which have been carried out in transport infrastructure construction projects

revealed that average of 700 to 800 Tanzanians which include skilled, semi-skilled and unskilled

staffs are employed on a project. Some of the unskilled staff are employed on a causal basis and earn

between TShs 2,000/= to 4,000/= per day. This amount tends to increase household income.

Reduction in Vehicle Operating Costs (VOC)

Reduction in transport operating costs is calculated by carrying out economic analysis using economic

models. These models include HDM-4 and RED models. Reduction in transport operating costs leads

to reduction in transport costs.



75

Improved Marketability

The increase in farm-gate prices is due to improved accessibility and hence agricultural products

become more competitive. The increase in farm-gate prices increases income to the households and

hence encourages farmers to grow a wider range of crops, use more inputs and land for more

production. For example, an impact study which was carried out by the consultant on Msalabani-

Tawa road in Morogoro Region, indicated that a bunch of bananas used to fetch TShs 1,000/= to

2,000/= before the improvement of the road, but one year after improvement the price raised from

TShs 2000/= to TShs 3,000/=. Oranges prices went up from TShs 5/= to TShs 10/= per orange.

Reduction in Travel Time

Reduction in travel time due to improved transport infrastructure and services will enable the petty

households traders to increase the frequency of travel and thus generate more income for themselves and their households’ members. Reduction in travel time will be spent for other socio-economic

activities and hence increase their income.

Access to Social Service

Improved transport infrastructure will enable the households to accused use health facilities more

frequently and more effectively and hence reduce mortality rate. The markets will be easily accessible

and hence facilitate trade among the communities and hence increase their income. Roads will also

improve accessibility to education centres such as schools and hence reduce illiteracy rate and

increase enrolment rate.

The above stated benefits for transport sector are also known as social and economic indicators and

could be measured by comparing the baseline data and the current data.

Macroeconomic Stability

List of interventions is through improvement of transport infrastructure, which will have an immediate impact of lowering transport cost and time of delivery of goods and stimulation of

production activities. The ultimate impact will be enhanced macroeconomic stability. Transport sector

plays an important role of ensuring that the operational target of accelerated GDP growth rate of 6 –

8% per annum is attained by 2010. Intervention to be used in attaining that GDP growth rate will be

through developing, rehabilitating and maintaining the transport infrastructure. This will be done

through implementation of the Transport Sector Investment Programme (TSIP).



76

CHAPTER 8

8.0 FINANCING OF THE TSIP PROGRAMME

8.1 Infrastructure Development – Key to Economic Transformation

Infrastructure is a key component of the investment climate, reducing the costs of doing business and

enabling people’s access to markets. It cuts across all sectors of activity and contributes to improving

public welfare through services provision to the population thereby contributing to the achievement of

millennium development goals (MDGs). Infrastructure is therefore regarded as the engine for

development. It is now known that the first key factor that contributed to the rapid economic

transformation of emerging economies is infrastructure development. These countries invested

heavily in basic infrastructure, especially roads.

The World Bank Report on the Investment Climate identifies lack of infrastructure as one of the main

disincentives to investment. According to the report, differences in infrastructure would account for

up to one third of the difference in output per worker in Asia; a similar story would hold true for

Africa.

Poor infrastructure is a critical barrier to accelerating growth and welfare improvement in Africa.4 In

Tanzania, the road sector has been singled out to be a bottleneck in the agricultural sector mainly

because the network is not stable (unpaved - mainly earth and gravel) particularly during the rain

season. Vehicle operating costs in such highly trafficked roads is higher than on a paved road. For

instance, the cost of transporting maize from Sumbawanga to Tunduma (unpaved road) about 232 km

is almost equal to the cost of transport the same quantity of maize from Tunduma to Dar es Salaam

(paved road) about 927 km by the same road mode. The critical issue, given the partial maintenance

funding situation, is state of the road (paved or unpaved) rather than distance; the distance to Dar es

Salaam from Tunduma is almost four times the distance from Sumbawanga to Tunduma.

Through implementation of the National Strategy for Growth and Reduction of Poverty (NSGRP),

popularly known as MKUKUTA, the Government recognizes that availability of efficient and

affordable transport is a crucial condition for economic development and poverty reduction.

8.2 Financing Strategy of TSIP Through Traditional Sources of Funding

The First Phase of the TSIP (2007/08-2011/12) is estimated to cost USD 6,192.52 million out of

which USD 2,475.17 million or 40.0% has already been committed or secured through the traditional

sources of funding mainly the GOT and the DPs with contributions from own funding in the case of

Sea Ports, Air Ports and Railways, and PPP for targeted projects in maritime, air and railway

transport. The identified funding gap in this programme is about USD 3,717.35 million or about 60.0%. For maritime, air and railway projects, it is hoped that the financing gap will be bridged by

Government revenues; donor assistance including non-traditional donors the Government is

approaching; financial institutions loans, and to large extend the private sector through PPPs.

However, for the road sub-sector which is traditionally funded solely by Government and

Development Partner assistance, Government has to find alternative ways of financing the national

road network.

8.3 Traditional Sources of Funding Road Infrastructure Not Adequate

While all Transport sector modes face chronicle financing gaps in maintenance and development

requirements, it is the road network which is solely funded by Government and Development Partners

that is critically affected and yet it is the lifeline for socio-economic activities in the country.

Although both Government and DPs recognize that road infrastructure is crucial for other sectors to

4. Studies have shown that “apart from traditional variables (income, assets, education, and direct health interventions),

better access to basic infrastructure services has an important role to play in improving child-health outcomes,” Fay,

Leipziger, Wodon and Yepes, 2005, p. 1267. See, for example, Holloway, Nicholson, Delgado, Staal and Ehui, 2000.



77

deliver services effectively, their resource envelops are limited and yet several sectors compete stiffly to have their importantly appealing crucial investment projects funded. This situation has forced the

transport sector to differ commencement of crucial road improvements into future years to the

detriment of sector performance which in turn has affected performance of other socio-economic

sectors in terms of service delivery. Worse still preservation of road assets through timely periodic

maintenance treatment is not possible leading to more costly (four times) rehabilitation treatments.

By FY2006/07, the Road fund was able to cover only 40% maintenance needs. With additional DP

targeted road maintenance programmes in some regions, coverage of road network maintenance needs was estimated at 53%.

With regard to development budget, recent examples show that while in FY2007/08 MOID needed

TSh 400 billion from the Government for development of the road network, the budget ceilings

allowed for only TSh. 225 billion, about half of what is required. In FY2008/09, the budget ceilings is

kept at the same level i.e. TShs. 225 billion. Due to the counterpart funding requirements (usually

10%), the DP funding is also limited by the budget ceilings for instance in FY2008/09 it is set at

TSh198.1 billion.

Therefore, in order to fund fully the required investments in the road sector, there is a need for

Government to be innovative by mobilizing funds from the private sector. For instance, Ghana which

is at the same level of economic development as Tanzania has successfully issued local and

international bonds to finance her infrastructure development requirements for roads and energy.

Other countries such as Kenya, Zambia and Nigeria are considering issuing bonds for road

development. Other African countries with high level economies that have already issued bonds for

road development are South Africa, Egypt and Morocco. For road projects that are self-sustaining like

the Kigamboni Bridge in Dar es Salaam and some Road Corridors with high traffic especially those with high proportion of heavy commercial vehicles, Public-Private Partnership could make available a

larger proportion of the required investment thereby releasing more funds from the Government &

Development Partners for other needy social service sectors.

Furthermore, Maintenance of roads will be financed through PPP by getting into Performance Based

Management and Maintenance of Roads (PMMR) contracts with the private sector. Since October

2007, TANROADS with funding from IDA of the World Bank is running 4 contract packages, 2 in

Mwanza and 2 in Rukwa regions including consultancy contracts as well. A third contract package for Tanga Region is at advertisement for tender stage. A facilitation and training contract at TANROADS

Hqts. is under negotiations. Unfortunately, IDA has pulled out from financing the PMMR contracts.

This is now a challenge to TANROADS as more funds will be required to finance PMMR in the

coming financial years. However, with lack of a PPP National Policy coupled with low budget

ceilings the funds for these contracts are not guaranteed for the five year contract period.

8.4 Financing Infrastructure Through Private Sector Participation

The Government of Tanzania, like most governments of the developing world, is constrained with a

narrow domestic tax base to raise finances required for implementing its development agenda.

Moreover, the existing state of socio-economic infrastructure is another impediment for attracting

investments to the magnitudes sufficient to defray the development financing gap. Furthermore,

official development assistance has not been able to fill the gap. To sustain progressive socio-

economic development, therefore, Tanzania requires innovative tools for financing development projects in order to expand its production frontier as well as improve economic competitiveness.

Vision 2025 requires the Government to permit and facilitate various actors to participate in economic

growth, inter alia, by encouraging the private sector to undertake investments in infrastructure

development. Such investment can be achieved through Public-Private Partnerships frameworks.

Indeed, PPPs have been identified as a viable means to effectively address constraints of financing,

management and maintenance of public sector projects and delivery of public services.

Therefore, during the implementation of TSIP, the priority will focus on the involvement of private

sector in the development of transport infrastructure through public-private partnership (PPP) concept

in areas where the private sector can easily invest alone or in partnership with the public sector. PPP is



78

being considered as a unique option for engaging private sector capital in the improvement of transport infrastructure and services, through a sense of share of investment risks with the public

sector. The packaging of Performance Based Management and Maintenance of Roads contracts

initiatives is a good case in point on how the private sector is going to get involved. In addition

international and local banks can be appointed to issue infrastructure bonds to finance the gap in the

investments required to implement TSIP or the stabilization program of the national road network to

be prepared by December 2008.

Fortunately, Tanzania is in the process of putting in place a PPP Policy and Regulatory Framework to

enable the private sector to actively engage in the infrastructure development agenda of the country.

MOID is spearheading this process which is now at an advanced stage – preparation of a Cabinet

Paper for Government to approve the PPP National Policy. It is hoped that when the PPP National

Policy and institutional Framework are in place, the Government will greatly involve the private

sector in investing into the road infrastructure through issuance of bonds to finance backlog periodic

maintenance, rehabilitation and upgrading of highly trafficked road sections to ensure stabilization of

the road network or contracting out medium-term Performance Based Management and Maintenance

Roads contracts.

8.5 Roadmap for Private Sector Participation in Infrastructure Development

The Government is committed to ensuring that more resources are mobilized for infrastructure

development from the private sector through Public-Private Partnerships. Therefore, a roadmap to this

commitment is as follows:

(i) MOID will ensure that the Draft National PPP Policy reaches the Cabinet for approval by

August 2008 and that an appropriate institutional framework is put in place by September

2008. A Nucleus PPP Unit should be set-up in MOFEA to kick-start PPP and infrastructure

bond projects by September 2008. A critical mass of a cadre of staff with PPP knowledge is

being created through 3 tailor-made courses being offered here in Tanzania by the IP3 -

Institute for Public-Private Partnership through World Bank assistance, a total of 140 staff

would have been trained by September 2008. The course has been advertised to all MDAs.

(ii) MOFEA is urged to commit the Central Bank to accept the idea of issuing infrastructure

bonds to finance gaps in critical sectors such as roads, energy, etc. so that programmes

designed to leapfrog Tanzania to a medium developed country are fully funded.

Pronouncement on this should be made by September 2008. Thereafter, the MOFEP and the

Central Bank can make appropriate preparatory work that can allow international and local

banks to participate in issuance of infrastructure bonds. Experience of Ghana and South

Africa can be sought.

(iii) MOID will come up with a shortlist of suitable transport projects for PPP and other

Ministries should do the same under the coordination of the Nucleus PPP Unit in MOFEP.

This must start immediately within the Ministries while waiting for the setting up of the PPP

Unit.

(iv) Advertisements for PPP projects will be done by January 2009 so that the projects can be

incorporated in the FY2009/10 budget process.

The proposal for private sector participation in infrastructure development may not solve the

immediate funding gap in FY2008/09 however the Ministry will make concerted efforts to ensure

that on-going road projects are fully funded in FY2008/09 while ensuring that alternative financing

modalities come into play in FY2009/10.



79

CHAPTER 9

9.0 MONITORING AND EVALUATION

9.1 Approach

The TSIP implementation will have to be monitored, evaluated and reviewed throughout its

implementation period. The results derived from the monitoring and evaluation exercises are not only

used to adjust existing programmes and projects under implementation, but also form the necessary

ingredients to prepare new programs and projects. This entails putting in place monitoring mechanism

and evaluation using the identified indicators. A reasonable monitoring and evaluation period need to

be put in place which may be flexible.

Monitoring of the TSIP will be an on-going exercise. The objective of monitoring is to provide

information at different levels of the TSIP with a view of resolving implementation problems and

assess progress in relation to what has been planned. It will involve systematic collection of data with

specified indicators to record the use of allocated funds and other inputs. It will be used to track

progress of activities and achievements of predetermined targets or objectives. Monitoring will

provide an early warning system.

The main purpose of monitoring shall be:

• To keep track of progress of the program.

• To provide information on the actual performance to enable recognition of best practice

and corrective action or decision making.

• To provide early warning signals about the required development and subsequent change

and/or review.

• To guide future implementation strategies.

The monitoring exercises shall be done by staff involved in the programme and primary partners

within the duration of a specific project.

Evaluation will be periodically carried out with a view of outlining the achievements, effects and

impacts of the TSIP. The main purpose shall be:

• To assess overall outputs, effects and impact.

• To determine the relevance of the project design.

• To provide answers to specific issues and lessons learnt and provide information for

strategic planning and policy options.

The implementation of the evaluation exercise shall be done by internal and external specialists. The

task shall be commissioned by the Ministry of Infrastructure Development. In any case by the end of

the first phase of the programme, local capacity should be in place to ensure sustainability of the

process.

It is of paramount importance to note here that the overall performance monitoring of the program will be carried out centrally through the reports coming from the different implementation points and

sometime physical inspection of the projects. The Ministry will form a team or engage consultants to

conduct the evaluation exercise. At the Ministry level the Directorate of Policy and Planning will play

the leading coordination role in the strategic coordination while at the institutional/agency level their

respective coordination units will lead the process.

9.2 Compliance of TSIP with the MDGs

The aspirations of TSIP are the same as those of Millennium Development Goals (MDGs). Both have

the growth and poverty alleviation objectives. The aspirations of TSIP are to achieve a level of



80

transport systems in the country that would enable sufficient provision of transport services that are effective and affordable. These services should be able to adequately support other socio-economic

sectors to achieve the aspiration of growth and poverty alleviation. The MDGs Transport Indicators

have been set. These are benchmarks to be achieved by the end of the programme. Indirectly, this

means developing the transport systems to a level that would have a direct impact on poverty

alleviation and economic growth.

9.3 Compliance of TSIP with Vision 2025

The TSIP is built within a broader focused framework of the National Development Vision 2025. The

monitoring and evaluation framework for the TSIP is also compliant with the Vision 2025 in the sense

that the benchmarks and indicators of TSIP are based on those of the Vision 2025. However, while the

Vision 2025 sets what is to be achieved in terms of poverty alleviation by 2025, the TSIP sets what

should be done by 2016 in order for the transport sector to enable and facilitate other sectors to achieve the required momentum for poverty alleviation and development. The Vision 2025 will be a

benchmark towards which achievement of the programme will be measured.

9.4 Compliance of TSIP with the NSGRP

National Strategy for Economic Growth and Reduction of Poverty (NSGRP/MKUKUTA) is geared

towards alleviating poverty and fostering development in Tanzania. It is inline with the National Development Vision 2025. However, the NSGRP has shorter periods for reviews and is streamlined

to the MDGs. Since TSIP is also streamlined with the National Vision 2025, they are indirectly

compliant with each other. However, NSGRP needs to clearly, coherently and three dimensionally

cover issues related to transport sector as a whole. Like the Vision 2025 the MDGs and NSGRP will

be bench marks upon which achievements will be measured.



81

10.0 APPENDICES

10.1 Annex 1: Transport Sector Stakeholders

10.1.1 Key Ministries

There are key Ministries in the transport sector. These are Ministry of Infrastructure Development

(MID), Prime Minister’s Office – Regional Administration and Local Government (PMO-RALG) and

the Ministry of Public Safety. Each one of these has a distinct roles and responsibility. The specific

role of these Ministries includes:

a) The Ministry of Infrastructure Development is responsible for:

(i) Transport policy development.

(ii) Transport policy implementation strategies and setting of strategic goals.

(iii) Putting in place laws and regulations for the overall transport sector.

(iv) Providing inter-sectoral and regional coordination for transport matters.

(v) Designing strategies for private sector involvement in the transport sector.

(vi) Providing mechanisms through which the views of stakeholders can be

presented.

(vii) Coordinating and aligning the regional and international transport related

policies, strategies and programs with those of the country Formulation of

construction policy.

(viii) Construction and maintenance of the trunk and regional roads infrastructure.

(ix) Formulation of construction policy.

(x) Development of Construction Policy implementation strategies.

(xi) Strategic planning for trunk and regional roads infrastructure development

and maintenance.

(xii) Encouraging participation of private sector in the public works activities.

b) Prime Minister’s Office – Regional Administration and Local Government (PMO-RALG) is

responsible for planning, development and maintenance of urban, district and feeder roads

transport systems. Execution of its transport programmes is done largely through the urban

and district authorities.

c) There are also specific economic activities in villages like roads, airports or ports that are

owned and maintained by the respective village governments/ communities or and beneficiaries respectively.

d) Ministry of Public Safety and Security is responsible for: Transport Law enforcement which

include:

e) Implementation of road traffic regulations.

f) Enforcing safety regulations and security in the sector.

g) The Ministry of Finance, which is responsible for registration of motor vehicle, and collection

of revenues from imported fuel for the Road Fund. The Ministry is also responsible for

mobilization of public resources for investment, especially in infrastructure.

h) Ministry of Planning, Economy and Empowerment which is the formulator of macro

economic strategies, national strategies, resources projections, reforms and empowerment.

i) Other Ministries

j) The Ministry of Industry, Trade and Marketing, which among other things, is responsible for

registration of transport companies, setting of standards, oversees the trade and competition

laws, as well as manufacturing and importation of transport equipments.

k) Vice President’s Office is responsible for environmental management and control.



82

l) Ministry of Lands and Human Settlement which is responsible for planning and management of land use. This is important for the planning of transport infrastructure development.

m) The Ministry of Health and Social Welfare is undertaking educational programs on the

knowledge and awareness of HIV/AIDS by the transport crews. It is also responsible for post

accident and trauma management in general.

n) The Office of the Attorney General plays a coordinating role in the formulation of the

relevant laws in the sector. It also acts as a bridge between the sector and the Legislature in

ratifying all the international transport agreements and conventions, which Tanzania has

signed.

o) The Ministry of Science Technology and Higher Education, is responsible for higher

education and the enhancement of science and technology in the country.

p) Ministry of Education Vocational Training. is responsible for Vocational training through

Vocational Education Training Authority (VETA)

q) Ministry of Natural Resources and Tourism, which is responsible for developing and

maintenance of road sections under their jurisdiction (National Parks and Game reserve areas)

r) Ministry of Agriculture and Cooperation, is the major user of roads for transportation of

agricultural inputs and products

10.1.2 Regulatory Authorities and Boards

Tanzania has two transport regulatory authorities namely the Tanzania Civil Aviation Authority

(TCAA) for air transport and the Surface and Marine Transport Regulatory Authority (SUMATRA)

for marine and surface (i.e. road and railway) transport.

a) Tanzania Civil Aviation Authority (TCAA)

Tanzania Civil Aviation Authority is a regulatory body established under the TCAA Act 2003. The

new Authority replaces the former TCAA, which was established on 26th March 1999 as a

Government Executive Agency, is responsible for safety and economic regulation and provision of air

navigation services.

b) Surface and Marine Transport Regulatory Authority (SUMATRA)

SUMATRA was established by an Act of Parliament of 2001 as the economic regulatory body for surface

and maritime transport. Its responsibility is to issue, renew and cancel transport licenses related to surface

(i.e. roads and railways) and maritime transport, establish standards for regulated goods and services,

regulate rates and charges, make rules of operations, monitor the performance of the regulated sub-

sectors.

c) Engineers Registration Board (ERB)

The Board was established under the Act of Parliament no 16 of 1977. The responsibilities of the

body are:

• To maintain and keep a register of engineers, including consulting engineers or firms

providing engineering services;

• To consider and decide on applications for registration;

• To promote and provide opportunities and facilities for the study of and for professional

training in engineering;

• To sponsor, arrange and provide for facilities for conferences, seminars, workshops and

consultations on matters related to the field of engineering;

• To Promote and maintain professional conduct and integrity of the engineering profession;

• To monitor the conduct and activities of engineers, including consulting engineers or firms;

• To arrange for the publication and dissemination of materials produced in connection with the

work and activities of the board;



83

• To certify academic awards given by training institutions for consideration in an application

and to carry out such other functions as the Minister may, from time to time direct after

consultation with the Board.

d) Contractors Registration Board (CRB)

The Board was established under the Act of Parliament No 17 of 1977. The responsibilities of the

body are to register, develop and regulate contractors activities including:

• To consider and decide upon application for registration, to effect registration of

contractors; to maintain a register of contractors and to prescribe fees for registration and

annual subscription;

• To regulate the activities and conduct of contractors;

• To enter and inspect any site for construction, installation, erection or alteration works for

the purpose of verifying and ensuring that the works are being undertaken by registered

contractors; and that the works comply with all governing regulations and laws on the

country;

• To take legal action against unregistered contractors who undertake construction,

installation, erection or alteration works;

• To verify and ensure that every site for construction, installation, erection, alteration

works has a sign board which shows the names and address of the project, client,

consultants and the contractors of the project, and to take legal action against defaulters,

• To promote and provide opportunities and facilities for the study of, and for the training

in pre-contract and post contact management, construction, erection, installation or

alteration of structures and allied subjects connected with them revoke;

• To promote and Maintain professional conduct and integrity of contractors;

• To Arrange for the publication and general dissemination of materials produced in

connection with the work and activities of the Board;

• To take disciplinary action against registered contractors who contravene the provisions

of this Act or the By-laws of the Board .ETC

e) National Construction Council (NCC)

NCC was established through Act of Parliament No. 20 of 1979 and become operational in

August 1981. Functions of NCC are

• To promote the development of the construction industry in Tanzania; To plan and

Coordinate the activities of persons engaged in the construction industry in Tanzania;

• To provide advisory services and technical assistance for, or incidental to the proper

development of the construction industry institutions and other persons engaged in the

construction industry,

• To provide and promote training facilities for persons engaged in or employed or to be

employed in the construction industry;

• To advice the government on all matters relating to the development of the construction

industry and to formulate proposals and recommendations for their implementation;

• To promote the documentation and dissemination of information on any aspect of

research into any activity connected with the construction industry;

• To monitor the implementation of standards and regulations relating to the construction

industry;

• To monitor construction costs and make suggestion for their control, to give advice on

the economical use of materials for construction and to encourage the maximum use of

local materials;

• To carry out and promote research activities in various aspects of the construction

industry;



84

• To advise the government or institutions engaged in the construction industry, on the

adaptation of technology in the construction industry;

• To participate in , or to make arrangements for, conferences, seminars and discussions on

matters connected with the activities or the council and to establish and monitor

guidelines for tendering procedures so as to ensure fairness, speed and economy.

f) Architect and Quantity Surveyors Registration Board (AQSRB)

The Board was established under Parliament Act No. 16 of 1997 and bylaws 2002.The Board main functions are:

• To maintain a register of architects, a register of quantity surveyors, and a register of

consulting firms and consider and decide upon applications for registration; registration of

architects, quantity surveyors and consulting firms and to prescribe fees for registration

and annual subscription;

• To regulate the activities and conduct of architects, quantity surveyors and consulting

firms;

• To enter and inspect the construction, installation or erection sites for the purpose

verifying and ensuring that the works designed are supervised by registered

professionals, and that they comply with all government regulations and laws of the

country;

• To take legal action against unregistered architects, quantity surveyors or consulting

firms;

• To verify and ensure that, every site for construction, installation, erection "or alteration

work. has a signboard which shows the names and addresses of the project, client,

consultants and the, contractors of the project and to take legal action against defaulters;

• To promote and provide opportunities and facilities for the study of and for the training

in architecture quantity surveying and allied subjects,

• To conduct examinations or professional interviews as a means, of satisfying the Board

for purposes of registration, as to the competence to practice as professionally qualified

architects or quantity surveyors or as to the adequacy of practical training in

architecture or quantity surveying as may he approved by the Board;

• To sponsor, arrange and provide facilities for courses, conferences seminars, discussions

and consultations on matters relating to the subjects referred to in paragraph (vi),

• To arrange for pubic and general dissemination of materials produced in connection

with the work and activities of the Board;

• To liase with other institutions involved in architecture and quantity surveying;

• To certify academic awards issued by training institutions for the purposes of

consideration of awards for registration;

• To grant diplomas, certificates and other awards of the Board for examinations

conducted by the Board;

• To take disciplinary action against registered architects, quantify surveyors and consulting

firms. contravening the provisions of this Act;

• To offer advisory services to the construction industry;

• To liase with both local and international professional boards and associations involved

in ,the construction industry for the purposes, of- consultations, exchange of ideas, and

experiences; and

• To carry out any other functions which are in the public interests and which the Minister

may in writing, direct.



85

10.1.3 Operational Agencies/Parastatal Organizations

a) Tanzania Ports Authority (TPA)

Tanzania Ports Authority (TPA) was established by the government under the Ports Act 2004 to take

over the functions of the Tanzania Harbours Authority (THA). TPA is responsible for both coastal

and inland ports. Major functions includes; setting long term development Plans, Developing and

maintaining infrastructures under its jurisdiction, providing landlord services., Port Safety and

Security, etc.

b) Tanzania Airport Authority

The Tanzania Airports Authority (TAA) was established by the Executive Agencies Establishment

Order, December 1999. The Authority is a semi-autonomous government agency and its major

functions includes, Management of all mainland airports, fosters competition in the provision of

airport services, Ensures airport development, expansion, maintenance and managing airports

concession agreements.

c) Tanzania National Roads Agency (TANROADS)

The Tanzania National Roads Agency (TANROADS) was established by the Executive Agencies

(The Tanzania National Roads Agency) (Establishment) Order, 2000, GN293 of 2000 made under

section 3(1) of the Executive Agencies Act No. 30 of 1997. The Agency is a semi-autonomous

government agency responsible for; Managing, developing and maintaining all trunk and regional

roads network and Implementation of the Road Sector Development Plan initiated by the Ministry .

d) Roads Fund and the Roads Fund Board

The Roads Fund Board and the Roads Fund were established in 1998 by statutory instruments of the

Parliament (Rods Toll Amendment No. 2 Act of 1998) to manage road fund monies and disburse

them to road implementing Agencies who are currently TANROADs (63%), MoID (7%) and PMO-

RALG (30%). The main functions of the board are to collect revenue, disburse the funds and monitor

its utilization. According to the Act, the sources of the revenue are; Fuel levy, Overloading fees,

Transit fees, Heavy vehicle License fees (was abolished from July 2005) and other source at the rate

or rates to be determined by the parliament from time to time. However, the Roads Fund collections

so far suffice the maintenance requirements of only about 40% of the whole road network i.e Trunk,

Regional Roads under MoID and District, Feeder and Urban Roads under PMORALG. Recommendations to bridge the financial gap have been submitted to the relevant authority for

consideration and implementation.

e) Tanzania Government Flight Agency (TGFA)

TGFA was established in 2003 under the Executive Agencies Act No. 30 of 1997 from a Government

Department in the Ministry of Infrastructure Development and is responsible for providing air

transport services to the government leaders locally and internationally and hired air transport services

to the public.

f) Tanzania Meteorological Agency (TMA)

TMA was established in 1999 under the Executive Agencies Act No. 30 of 1997 from a Government Department in the Ministry of Infrastructure Development. TMA is responsible for providing

meteorological services in the country and representing the Government in the World Meteorological

Organization.

g) Tanzania Buildings Agency (TBA)

Established under section 3(i) of the executive Agencies Act No 30 of 1997 with aim of providing and

improving accommodation for the government and Public servants.

h) Tanzania Electrical Mechanical and Electronics Services Agency (TEMESA)

Established under section 3(i) of the executive Agencies Act No 30 of 1997 with aim of providing

engineering services in electrical, Mechanical and Electronic fields. Reliable ferry operations and

hiring of equipment in the most effective manner to support the economy of the country



86

i) Tanzania Railways Corporation (TRC)

Tanzania Railways Corporation (TRC) was established by the TRC Act of 1977 after the collapse of

the East African Railways Corporation (EARC) responsible for provision of freight and passenger

services on commercial principles and provision and maintenance of railway infrastructure and

operating equipment.

TRC is undergoing restructuring which entails unbundling of its activities to allow for private sector

participation in the provision of services. However, the ownership of the infrastructural assets will

remain under the government through the Reli Asset Holding Company (RAHCO) established by the

Railways Act of 2002.

RAHCO will be responsible for development of the TRC rail infrastructure and act as the land lord of

TRC infrastructure and will oversee the implementation of the concession agreement on behalf of the

government.

j) Tanzania Zambia Railway Authority (TAZARA)

Tanzania Zambia Railway Authority (TAZARA) was established under the TAZARA Act of 1975

and began commercial operations on 1st July 1976, is jointly owned by the Government of the United

Republic of Tanzania and the Government of the Republic of Zambia on 50:50 basis. TAZARA has

responsibilities of provision on sound commercial principles of a secure, efficient and safe transport system and provide maintenance of railway infrastructure and operating equipment

10.1.4 Development Partners (Foreign countries and International Organizations)

Development partners, both multilateral and bilateral, have been playing a key role in supporting the

development of infrastructure, improvement in the provision of services and technical assistance.

Most of these partners are governments (bilateral) and international development institutions with

different priorities in the various transport sub-sectors. They include and not limited to the European

Union, Governments of Belgium, Kuwait, Germany, the Netherlands, United Kingdom, Japan, China,

Sweden, Norway, Denmark, Finland, India, Canada, Unites States of America, Australia, Ireland,

UNDP, ILO, etc.

10.1.5 Financial Institutions

International and local financial institutions have been playing a vital role in the financing of

development of the transport sector in particular transport infrastructure. Their roles range from

capital support to financing technical assistance, to the provision of resources for infrastructure as

well as operational improvement. The international institutions include the World Bank, ADB, Arab

Bank for African Development (BADEA), OPEC, African Development Bank (ADB), Kuwait Fund

and European Investment Bank. The local financial institutions include Tanzania Investment Bank

(TIB), NBC, Cooperative for Rural Development Bank (CRDB), National Social Security Fund (NSSF), Parastatal Provident Fund (PPF), Local Authority Parastatal Fund (LAPF) and National

Provident Fund (NPF).


Training institutions under MID are playing a big role in capacity building of staff in the sector.

Training institution under the Ministry including National Institute of Transport (NIT), Morogoro

Works Training Institute (MWTI),Dar es salaam Maritime Institute (DMI), Civil Aviation Training

School (CATS) Bandari College, Tabora Railway Training College, Kigoma Meteorological and

Mbeya Appropriate Technology Training institute (ATTI).

10.1.7 Private Sector

Private sector is an engine of the sector for service provision. Among the private sectors operating

within the transport sector are Tanzania Bus Operations Association (TABOA), Tanzania Tank

Operators Association (TATOA), Dar es Salaam Commuters Bus Association (DACUBOA),



87

Association of Consulting Engineers Tanzania (ASET), Tanzania Civil Engineers Contractors Association (TASECA), Tanzania Roads Association (TARA), International Forum Group (IFG),

Contractors and Tanzania Truck Operators Association (TAROTA). Pipeline transportation (gas and

crude oil) has been earmarked for privatisation.



88

10.2

An

nex 2

: P

rop

ose

d R

oad

Proje

cts

for F

irst

Ph

ase

of

TS

IP

U

S$

M

ILL

ION

S

PR

OJ

EC

T N

AM

E

LE

NG

TH

(KM

)

LE

NG

TH

TO

BE

DE

VE

LO

PE

D

(KM

)

FY

2007

/08

FY

200

8/0

9

FY

20

09

/10

FY

2010

/11

FY

2011

/12

F

INA

NC

IER

EIR

R

(%)

RA

NK

ING

R

EM

AR

KS

CO

RR

IDO

R N

AM

E

US

D

TA

NZ

AM

Pro

ject

s u

nd

er c

on

stru

ctio

n /

Up

gra

din

g

Ruvu Bridge (Construction)

0.135

0.135

1.56

-

-

-

-

GO

T

N.A

Construction is on going

Kidatu – Ifakara

127

75

1.88

3.91

3.91

15.64

27.38

GO

T/S

DC

/ G

OT

-

Committed project

Ibanda - Itungi Port (

S/Dressing 2.7 km)

26

2.7

0.31

-

-

-

-

GO

T

-

Completed

Msimba- Ruaha M

buyuni/

Ikokoto – M

afinga

167

167

9.73

11.09

9.78

-

-

DA

NID

A/G

OT

18.0

8.0

Funds committed under

RSPS3

Mafinga-Makam

bako-Igaw

a

142

142

-

-

-

19.55

23.47

GO

T

-

High priority to preserve

investm

ent. NPV/C ratio

is 3.03

Ifakara-M

ahenge-Songea

336

40

-

-

-

1.50

25.00

GOT

-

Carrying out feasibility

study to determ

ine

economic viability.

Su

b t

ota

l 7

98

.14

4

24

.14

1

3.4

8

15.0

0

13.6

9

36.7

0

75.8

4

CE

NT

RA

L

Morogoro-D

odoma

256

0

0.20

-

-

-

-

EU

/GO

T

N.A

N.A

Rehabilitation completed

Dodoma – M

anyoni

127

40

22.02

11.73

-

-

-

GO

T

N.A

N.A


Singida-Issuna

63

13

4.86

-

-

-

-

GO

T

N.A

N.A


Issuna-Manyoni

55

55

3.91

9.39

9.39

8.60

-

GO

T

N.A

N.A


Singida - Shelui

110

50

15.40

3.91

-

-

-

GO

T/I

DA

N.A

N.A

Construction completed

Ilula - Tinde / Isaka - Nzega

169

0

0.78

-

-

-

-

EU

N.A

N.A


Mwanza - Shinyanga Border

10

10

0.16

-

-

-

-

GO

T

N.A

N.A

Rehabilitation completed

Isaka - Lusahunga

245

245

0.81

15.64

15.64

15.64

5.87

EU

12.8

14.0


investm

ent

Su

b t

ota

l 1

,035

.00

41

3.0

0

48.1

3

40.6

7

25

.03

24

.25

5

.87

LA

KE



89

PR

OJ

EC

T N

AM

E

LE

NG

TH

(KM

)

LE

NG

TH

TO

BE

DE

VE

LO

PE

D

(KM

)

FY

2007

/08

FY

200

8/0

9

FY

20

09

/10

FY

2010

/11

FY

2011

/12

F

INA

NC

IER

EIR

R

(%)

RA

NK

ING

R

EM

AR

KS

Kyam

yorw

a - Buzirayombo

120

45

12.51

3.49

-

-

-

GO

T

N.A

N.A


Buzirayombo - Geita

100

40

11.73

7.39

-

-

-

GO

T

N.A

N.A


Geita - Usagara

92

92

7.82

11.85

15.53

0.78

-

GO

T

20.8

2.0

Construction on going

Kagoma - Lusahunga

154

154

10.32

14.49

12.03

-

-

GO

T/A

DF

N.A

N.A

Contract for works

term

inated

Mwanza - Nyangunge, Mwz-

Airport &

T/Roads

58

0

0.31

-

-

-

-

GO

T

N.A

N.A


Nyanguge - Musoma/ Kisesa

Bypass

201

201

1.14

11.73

19.55

19.55

11.73

EU

15.60

10.0


investm

ent

Mutukula (Uganda/TZ Brd)-

Kyaka-Bugene-Rusumo

(TZ/Rwanda Brd)

182.4

58

-

-

1.50

25.00

15.3

11.0

Feasibility Study is

required. AADT is

around 1000

Su

b t

ota

l 9

07

.40

5

90

.00

4

3.8

5

48.9

6

47.1

1

21.8

4

36.7

3

GR

EA

T N

OR

TH

Arusha - Nam

anga

(Rehabilitation)

105

105

7.04

17.21

17.21

15.64

-

JB

IC/A

DF

/GO

T

17.0

9.0

Committed. Procurement

of a Contractor on going

Arusha-Minjingu

rehabilitation

103

103

0.70

-

11.73

11.73

9.39

ND

F/G

OT

19.4

5.0


investm

ent

Dodoma - Babati

263

100

0.02

-

-

23.47

27.38

GO

T

12.1

16.0

High priority. Part of the

Great North Road

Dodoma - Iringa

267

100

0.74

-

-

23.47

27.38

ND

F/G

OT

-

-

High priority. Part of the

Great North Road

Arusha Outer Ring Road and

Arterial Roads

140

140

-

-

49.00

49.00

GO

T

-

-

High priority to reduce

traffic congestion in

Arusha City

Su

b t

ota

l 8

78

5

48

.00

8

.51

1

7.2

1

28.9

4

123

.31

1

13

.14

NO

RT

H E

AS

T

Marangu-Tarakea-Rongai-

Kamwanga

98

85

25.52

15.64

15.64

3.91

-

BA

DE

A/N

OR

AD

/

GO

T

N.A

N.A


Wazo Hill - Bagamoyo

43

0

0.31

-

-

-

-

GO

T

N.A

N.A


Tanga - Horohoro

65

65

4.38

11.73

11.73

7.82

-

GO

T/M

CC

13.9

12

Construction to be

financed under

Millennium Challenge

Corporation (MCC)

compact

Chalinze - Segera - Tanga

Rehabilitation

248

248

15.96

18.77

18.77

15.64

-

DA

NID

A/G

OT

N.A

N.A

Funds committed under

RSPS3

Sam

e - M

kumbara - Korogwe

165

165

11.42

11.73

11.73

10.95

-

GO

T/I

DA

19.8

3

Funds committed

Bagam

oyo - Saadani - Tanga

178

70

0.16

0.39

-

15.64

23.47

GO

T

Contract for carrying out

feasibility signed in



90

PR

OJ

EC

T N

AM

E

LE

NG

TH

(KM

)

LE

NG

TH

TO

BE

DE

VE

LO

PE

D

(KM

)

FY

2007

/08

FY

200

8/0

9

FY

20

09

/10

FY

2010

/11

FY

2011

/12

F

INA

NC

IER

EIR

R

(%)

RA

NK

ING

R

EM

AR

KS

January 2008

Bagam

oyo - M

sata

65

60

-

22.75

22.75

Feasibility study on

going

Bomang'ombe - Sanyajuu

100

0

0.39

-

-

-

-

GO

T


going

Su

b t

ota

l 9

62

.00

6

93

.00

5

8.1

3

58.2

7

57.8

8

76.7

2

46.2

2

SO

UT

HE

RN

CO

AS

TA

L

Dar es Salaam - M

bagala

Road (Kilwa Road) - Phase 1,

2 &

3

14.6

15

10.99

7.82

7.82

7.82

3.91

GO

T/J

AP

AN

/GO

T

19.55

4

Reconstruction on going

for phase 1. Contract for

works for phase 2 will be

signed soon.

Nangurukuru - M

bwem

kulu

95

30

10.95

7.82

-

-

-

GO

T

-

-


Mbwem

kulu-M

ingoyo

95

30

21.24

11.73

-

-

-

GO

T

-

Rufiji (Mkapa) bridge &

approaches

13.95

0

0.31

-

-

-

-

GO

T

-


Mkuranga - Kibiti

60

3

1.10

-

-

-

-

GO

T

-


Ndundu - Somanga

60

60

9.78

9.78

7.82

5.48

-

KU

WA

IT/O

PE

C

/GO

T

-

Funds committed and

evaluation of tenders for

works on going

Su

b t

ota

l 3

38

.55

1

37

.60

5

4.3

6

37.1

5

15.6

4

13.3

0

3.9

1

SO

UT

HE

RN

Unity Bridge

0.6

1

8.60

1.16

-

-

-

GO

T/M

OZ

N.A

N.A

Construction of a bridge

ongoing

Masasi - Mangaka

54

54

5.87

11.73

7.82

-

-

GO

T/J

AP

AN

N.A

N.A

Contract for works has

been signed. It is under

mobilisation period

Mangaka - Tunduru

142

85

0.08

1.56

15.64

15.64

15.64

GO

T

-

It is part

of

Mtwara

Development

Corridor

which accords the

high

priority

to

the

Government

Tunduru - M

atemanga –

Songea

264

120

4.15

11.73

11.73

15.64

23.47

GO

T/M

CC

/ G

OT

-

Partly will be financed

by M

CC. It is part of the

Mtwara

Development

Corridor.

Songea- Mbinga - Mbam

ba

Bay

166.5

167

8.37

15.64

19.55

19.55

27.38

GO

T/M

CC

/ G

OT

-

Partly will be financed

by M

CC. It is part of the

Mtwara

Development

Corridor.

Su

b t

ota

l 6

27

.10

3

06

.10

2

7.0

6

41.8

4

54.7

5

50.8

4

66.4

8



91

PR

OJ

EC

T N

AM

E

LE

NG

TH

(KM

)

LE

NG

TH

TO

BE

DE

VE

LO

PE

D

(KM

)

FY

2007

/08

FY

200

8/0

9

FY

20

09

/10

FY

2010

/11

FY

2011

/12

F

INA

NC

IER

EIR

R

(%)

RA

NK

ING

R

EM

AR

KS

WE

ST

ER

N

Tunduma - Sumbaw

anga

231

231

10.25

31.29

31.29

23.47

25.81

GO

T/

MC

C

12.2

15

To be

be

financed by

MCC.

Mwandiga - M

anyovu

60

60

4.69

10.17

10.17

7.82

-

GO

T

-

Trade facilitation with

Burundi.

Kidahwe - Kasulu –

Nyakanazi

302

100

0.63

-

19.55

15.64

23.47

GO

T

19.14

7

Sumbaw

anga -

Kasesya/Matai - Kasanga Port

151

70

0.16

-

-

15.64

23.47

GO

T


going

Sumbaw

anga -M

panda –

Kanyani

499

100

-

-

3.13

23.47

23.47

GO

T

13.9

12

Feasibility study for

Sumbawanga-M

panda

completed. Detailed

design on going.

Feasibility study for

Mpanda- Kanyani also is

on going

Su

b t

ota

l

1,2

43

.0

3

31

.0

15.7

2

41.4

6

64.1

4

86.0

4

96.2

1

MID

WE

ST

Mbeya - Makongolosi (Phase

1- 36 km)

115

72

4.69

9.39

14.08

14.08

14.08

GO

T

-

Upgrading of 36km on

going.

Makongolosi - Rungwa

(182km)

0.23

-

-

-

-

GO

T

-

The allocated funds are

for spot im

provement

Rungwa - Ipole

172

0.23

-

-

-

-

GO

T

-


for spot im

provement

Ipole - Tabora

94

0.16

-

-

-

-

GO

T

-


for spot im

provement

Nzega - Tabora

116

80

0.41

-

12.51

11.73

19.55

ND

F/G

OT

-

Feasibility study is on

going

Makongolosi - Rungwa

(Upgrading)

182

80

-

-

1.50

25.00

GOT

-

Connectivity

with

the

Mbeya-Makongolosi

section

(under

upgrading)

and

the

central corridor through

Rungwa

and

Itigi

is

required

Su

b t

ota

l 6

79

.0

80.0

5

.7

9.4

2

6.6

2

7.3

5

8.6

IM

PO

RT

AN

T

LI

NK

S

Wes

tern

/ M

id W

est

Corr

idors

Ipole - Koga - M

panda Road

Link

100

0.31

-

-

-

-

GO

T

-


for spot im

provement

Rungwa - Itigi - Mkiwa

(122km)

0.39

-

-

-

-

GO

T

-


for spot im

provement

Rungwa - Itigi - Mkiwa

(Upgrading)

122

80

-

-

1.50

25.00

GOT

-

Connectivity

with

the

Mbeya-Makongolosi



92

PR

OJ

EC

T N

AM

E

LE

NG

TH

(KM

)

LE

NG

TH

TO

BE

DE

VE

LO

PE

D

(KM

)

FY

2007

/08

FY

200

8/0

9

FY

20

09

/10

FY

2010

/11

FY

2011

/12

F

INA

NC

IER

EIR

R

(%)

RA

NK

ING

R

EM

AR

KS

section

(under

upgrading)

and

the

central corridor through

Rungwa

and

Itigi

is

required

Su

b t

ota

l 2

22

.0

80.0

0

.7

0.0

0

.0

1.5

2

5.0

Cen

tra

l /

Mid

Wes

t/ W

este

rn C

orri

dors

Kigoma -Kidahwe -U

vinza

134

30

3.13

7.37

10.50

-

GO

T

N.A

Open up economic

potential of the area.

Kidahwe - Uvinza - Ilunde -

Malagarasi

130

Malagarasi - Kaliua

156

100

-

7.82

15.64

15.64

15.64

GO

T

-

Open up economic


Kaliua-Urambo-Tabora

126

30

-

-

-

-

15.64

GO

T

-

Open up economic


Manyoni-Itigi-Tabora

249

200

-

15.64

31.29

27.38

31.29

GO

T

-

Open up economic


Su

b t

ota

l 7

95

.00

36

0.0

0

3.1

3

30.8

4

57.4

3

43

.02

6

2.5

7

La

ke/

Gre

at

North

Corri

dors

Natta- Loliondo - M

to wa

Mbu Road Link

452

50

0.39

-

-

15.64

19.55

GO

T

13.4

13.0

Open up economic


Feasibility study to be

carried out.

Su

b-T

ota

l 4

52

5

0.0

0

.39

-

-

1

5.6

4

19.5

5

Cen

tra

l/G

rea

t N

ort

h C

orr

idors

Singida - Babati - Minjingu

Road Link

223

223

10.17

27.38

28.16

28.16

28.16

GO

T/A

DB

19.2

6.0

Funds committed and

procurement of civil

works and supervision on

going

Su

b t

ota

l 2

23

2

23

1

0.1

7

27.3

8

28.1

6

28.1

6

28.1

6

Cen

tra

l/L

ak

e C

orri

dor

Mwigumbi - Maswa - Bariadi

- Lam

adi

171

0

0.05

0.36

0.24

-

-

GO

T

Allocated funds are for

feasibility and detailed

design

Su

b t

ota

l 1

71

0

.00

0

.05

0

.36

0.2

4

-

-

North

East

Corr

ido

r

Sam

e - Kisiwani - Mkomazi

96

0.63

-

-

-

-

GO

T


for spot im

provement

Su

b t

ota

l 9

6

0

.63

-

-

-

-

Gre

at

Nort

h/C

entr

al

Corr

idors

Lin

k



93

PR

OJ

EC

T N

AM

E

LE

NG

TH

(KM

)

LE

NG

TH

TO

BE

DE

VE

LO

PE

D

(KM

)

FY

2007

/08

FY

200

8/0

9

FY

20

09

/10

FY

2010

/11

FY

2011

/12

F

INA

NC

IER

EIR

R

(%)

RA

NK

ING

R

EM

AR

KS

Korogwe-Handeni-Kiberashi-

Kondoa-Singida

547

1

00

-

-

-

2.00

25.00

GOT

Open up economic



carried out.

Su

b-T

ota

l 5

47

1

00

-

-

-

2.0

0

25.0

0

TA

NZ

AM

Cen

tral

- N

ort

h E

ast

Corr

idors

Lin

k

Mikumi-Kilosa-D

umila-

Handeni-Mkata

353

100

0.20

-

2.00

25.00

GO

T

Open up economic



carried out.

Su

b-T

ota

l 3

53

10

0.0

0

0.2

0

-

-

2.0

0

25.0

0

IMP

OR

TA

NT

UR

BA

N R

OA

DS

Sam

Nujoma Road

4

3

7.05

1.33

-

-

-

GO

T

N.A

N.A

Reconstruction is on

going

Mwanza Urban Roads

5

0

0.40

-

-

-

-

GO

T

N.A

N.A

Completed

Port Access (N

elson

Mandela) Road

15.8

15.8

7.24

9.13

6.63

-

-

GO

T/E

U

N.A

N.A

Reconstruction is on

going

DART (Dsm

Rapid Transit)

63.8

40.2

33.43

33.43

33.43

38.60

38.60

IDA

/GO

T


traffic congestion in Dar

es Salaam

Dar es Salaam Outer Ring

Road (FS)

50

30

0.12

-

-

11.73

19.55

GO

T

Feasibility study is on

going

New Bagam

oyo Road

(Kaw

awa/Ali Hassan Jct-

Wazo-H

ill-Mpiji)

35

20

-

3.13

11.73

11.73

11.73

GO

T

38.6

1


traffic congestion in Dar

es Salaam

Su

b t

ota

l 1

73

.6

8

9.0

0

48.2

3

47.0

2

51.7

9

62.0

7

69.8

9

TO

TA

L T

RU

NK

1

0,5

00

.79

4

,52

4.8

4

338

.47

4

15

.53

4

71

.40

6

14

.68

7

58

.20

OT

HE

R R

OA

DS

RE

LA

TE

D I

TE

MS

Road Safety Activities

0.39

1.17

1.56

1.96

2.35

NO

R/I

DA

/DN

D/

GO

T

Rehabilitation of five Ferries

4.64

-

-

-

-

GO

T/I

DA

Procurement of Kigamboni

Ferry

1.57

-

-

-

-

GO

T/I

DA

Procurement of Kinesi Ferry

0.43

-

-

-

1.56

GO

T

Procurement of Ruhuhu Ferry

0.51

-

-

-

-

GO

T

Nanganga Bridge (30m):

Mingoyo - M

asasi Rd

0.31

0.78

-

-

-

GO

T

Kilombero bridge

0.16

-

-

11.73

19.55

GO

T



94

PR

OJ

EC

T N

AM

E

LE

NG

TH

(KM

)

LE

NG

TH

TO

BE

DE

VE

LO

PE

D

(KM

)

FY

2007

/08

FY

200

8/0

9

FY

20

09

/10

FY

2010

/11

FY

2011

/12

F

INA

NC

IER

EIR

R

(%)

RA

NK

ING

R

EM

AR

KS

Procurement of Kome Ferry

-

-

-

-

1.56

GO

T

Procurement of Utete Ferry

-

-

-

-

1.56

GO

T

Kigamboni Bridge

-

-

11.73

15.64

19.55

GO

T

Procurement of Kyela-

Mbam

ba Bay Land craft

-

-

-

-

1.02

GO

T

Procurement of 2 engines for

MV Geita

-

-

-

-

0.78

GO

T

Procurement of Solar System

for Dar Traffic Lights

-

0.60

0.20

0.20

0.20

GO

T

Su

b t

ota

l

8

.01

2.5

6

13.5

0

29.5

3

48.1

5

TR

UN

K R

OA

D T

OT

AL

(I)

3

46

.48

4

18

.09

4

84

.90

6

44

.21

8

06

.35

Reg

ion

al

Roa

ds

Regional Roads

Rehabilitation/Upgrading

41.58

24.85

35.20

31.29

43.02

AD

B/O

PE

C/

DA

NID

A/I

DA

/

GO

T

Regional Roads

Rehabilitation/Upgrading

(Road Fund)

5.04

4.85

6.26

5.48

7.04

GO

T

Su

bto

tal

reg

ion

al

roa

ds

(II)

4

6.6

1

29.7

0

41.4

6

36.7

6

50.0

6

GR

AN

D T

OT

AL

( I

+ I

I )

393

.09

4

47

.78

5

26

.35

6

80

.98

8

56

.41

Note

: (i

) E

xch

an

ge r

ate

use

d 1

US

$ =

TS

hs

1,2

78.4

9



95

10.3

An

nex 3

: P

rop

ose

d T

CA

A P

roje

cts

for

Fir

st P

hase

of

TS

IP (

in T

shs.

mil

lion

)

Prio

rit

y

PR

OJE

CT

S U

ND

ER

TS

IP

Co

mm

en

cem

en

t

Peri

od

Co

mp

leti

on

Perio

d

Proje

ct

Sta

tus

Proje

ct

Cost

FY

20

07/0

8

FY

200

8/0

9

FY

20

09/1

0

Tota

l

20

07-2

01

0

Fin

an

cie

r

O

ng

oin

g p

roje

cts

1

Procurement of Air

Navigation Aids

Jan.2008

Jan. '10

Ongoing

4,000.00

4,000.00

4,000.00

TCAA

Im

port

an

t p

roje

cts

wit

h n

o f

un

ds

co

mm

itte

d

2

Enhance the Capacity of the Civil

Aviation Centre

Jan.2008

Jan. '10

New

625

625

0

625

TCAA

2

Establishment of Training Fund

Jan.2008

Jan. '10

New

3,750.00

0.00

937.5

2,062.50

3,000.00

TCAA

2

Managem

ent Inform

ation System

Jan.2008

Jan. '10

New

500

0.00

500

0

500

TCAA

2

Civil Aviation M

aster Plan

Jan.2008

Jan. '10

New

375

0.00

375

0

375

TCAA

2

Building Economic Regulation

Capacity

Jan.2008

Jan. '10

New

250

0.00

87.5

87.5

175

TCAA

2

Civil Aviation Statistics Database

Jan.2008

Jan. '10

New

312.5

0.00

312.5

0

312.5

TCAA

2

Construction of Aviation House

Jan.2008

Jan. '10

New

6,250.00

0.00

3,075.00

2,500.00

5,575.00

TCAA

T

ota

l

4,0

00.0

0

5,9

12.5

0

4,6

50.0

0

14,5

62.5

0



96

10.4

A

nn

ex 4

: T

AA

Dev

elop

men

t P

roje

cts

for

firs

t p

ha

se o

f T

SIP

(U

SD

00

0s)

Prio

rit

y

Ord

er

Proje

ct N

am

e

Pla

nn

ed

Co

st

Ap

proved

FY

20

07/0

8

FY

200

8/0

9

FY

20

09/1

0

FY

201

0/1

1

FY

20

11/1

2

1

J.Nyerere International Airport (on going)

54,0

90

10,820.1

10,817.4

10,817.4

10,817.4

10,817.4

1

Songwe Airport (on going)

15,2

52

6,163.5

4,544.4

4,544.4

1

Mwanza Airport (on going)

30,3

09

6,061.8

6,061.8

6,061.8

6,061.8

6,061.8

1

Mafia Island Airport

7,6

56

782.2

1,173.3

1,231.9

2,234.4

2,234.4

1

Kigoma Airport

6,3

67

1,173.3

1,251.5

1,314.1

1,314.1

1,314.1

1

Arusha Airport

6,3

86

1,517.4

1,173.3

1,231.9

1,231.9

1,231.9

1

Dodoma Airport

66,0

68

352.0

9,386.1

19,296.2

18,516.8

18,516.8

1

Singida Airport

12,1

11

78.2

782.2

821.3

5,214.5

5,214.5

1

Seven Airports Design

1,2

51

625.7

312.9

312.9

2

Bukoba Airport

10,4

29

5,214.5

5,214.5

2

Tabora Airport

7,9

78

3,989.1

3,989.1

2

Lake Manyara Airport

6,9

61

3,480.7

3,480.7

2

Shinyanga Airport

8,1

35

4,067.3

4,067.3

2

Musoma Airport

4,0

67

2,033.6

2,033.6

2

Tanga Airport

5,0

84

2,542.1

2,542.1

2

Mtwara Airport

8,9

95

4,497.5

4,497.5

2

Moshi Airport

2,8

55

1,427.5

1,427.5

G

RA

ND

TO

TA

L

253,9

95.3

27,5

74.2

35,1

90.0

45,3

19.1

72,9

56.0

72,9

56.0

Note

:

* Approved budges for Dodoma and 7 airports design is only for study and design, therefore the im

plementation plan rem

ains the same which will depend on availability of funds for

works

* Seven Airports Design includes Arusha, M

afia, Tabora, Kigoma, Bukoba, Shinyanga and Sumbawanga



97

10.5

A

nn

ex 5

: R

AH

CO

Dev

elo

pm

ent

Proje

cts

for

Ph

ase

1 o

f T

SIP

US

D I

n M

ill

Prio

rit

y

Proje

ct

Nam

e

Pla

nn

ed

cost

Ph

ase

1

20

07

2

008

20

09

20

10

20

11

1

Relaying with 80lbs/yd m

aterials 197kms of track central line

33.20

9.00

14.52

9.68

1

Track repair and improvem

ent of drainage in Kidete - Gulw

e Section (41kms)

5.30

5.30

1

Feasibility study Isaka-Rusumo - Kigali Railw

ay

135.62

0.08

68.59

66.95

1

Bridge strengthening Dar es Salaam - M

orogoro

18.77

3.13

3.91

3.91

3.91

3.91

1

Track realignment and regrading Pugu/M

piji; Kinonko/M

ikese

15.38

0.71

4.89

4.89

4.89

1

Installation of fibre - optic cable Tabora - M

wanza (380km)

17.46

5.48

6.84

2.57

2.57

1

TRC Dry port (Shinyanga & M

wanza

0.29

0.29

1

Truck streghthening M

anyoni - Singida and Kaliua / Mpanda railway lines

0.08

0.08

1

Building of gang cam

ps on the Manyoni / Singida and Kaliua / Mpanda railway lines

0.08

0.08

1

Concrete Sleepers Plant Tura

1.50

1.50

1

Relaying 173 km DSM / M

OR 80 lb/yd

27.57

7.04

8.80

3.91

3.91

3.91

2

Installation of fibre - optic cable Tabora - Kigoma 411km

13.00

7.82

2.59

2.59

2

Relaying Tanga - Arusha 56lb/yd to 80lb/yd (427 km)

35.19

15.64

19.55

2

Installation of fibre - optic cable M

ruazi - Arusha (375 km)

21.51

6.84

9.78

4.89

2

Construction of 250 km 95 lb/yd Arusha - Wosiwosi

75.84

19.56

27.39

16.89

12.00

3

Upgrading Tabora - Kigoma Line 411kms

4.54

2.93

1.61

3

Reducing curve 163No. DSM / M

OR

20.52

6.84

6.84

6.84

3

Relaying 20 km 80 lb/yd Itigi/Tabora (balance on 197 km)

1.72



98

Prio

rit

y

Proje

ct

Nam

e

Pla

nn

ed

cost

Ph

ase

1

20

07

2

008

20

09

20

10

20

11

4

Rebuilding 20No. 88 class m

ainline locomotive

9.78

4.89

4.89

4

Procurement of 20km 80lb/yd track m

aterials

2.10

2.10

4

Procurement of one accident relief crane

1.47

1.47

4

Upgrading Munisagara/Mzaganza Section (103km)

8.71

4.80

3.91

4

Rehabilitation of 100 wagons.

0.92

0.92

4

Procurement of 300 various types of wagons

7.82

3.91

3.91

4

Procurement of 66 third class passenger coaches

9.76

4.87

4.89

4

Procurement of 2No. Container handling cranes.

1.00

1.00

4

Procurement of workshop m

achinery.

3.91

1.91

2.00

4

Procurement of 27 shunting locomotives 700HP

9.78

4.89

4.89

4

Relaying Tabora - M

wanza (379km)

19.56

9.78

9.78

4

Upgrading of Dar es Salaam-M

orogoro to 115lb/yd track

24.45

9.78

14.67

4

Feasibility study Arusha/L. natron Railw

ay

1.00

1.00

4

Feasibility study Arusha/Minjingu Railw

ay

0.50

0.50

4

Loop Lengtherning to 800m at Pugu, Ruvu, Ngerengere and Kinonko

0.02

0.02

4

Procurement kof 4 Tam

ping m

achines and 4 Ballast Regulators

4.89

2.89

2.00

4

Bridge strengthening Tabora-M

wanza

2.44

1.44

1.00

4

Feasibility study of Arusha - Musoma line

2.93

1.93

1.00

4

Realignment of Kazuramim

ba - Luiche (44 km)

8.80

3.91

4.89

4

Installation of RETBs, DTC with GRS enhancement

14.67

4.89

9.78



99

Prio

rit

y

Proje

ct

Nam

e

Pla

nn

ed

cost

Ph

ase

1

20

07

2

008

20

09

20

10

20

11

4

Procurement of eight 2000 HP locos

15.64

7.82

7.82

4

Procurement of 37 locos 3000 HP

32.26

12.71

19.55

4

Procurement of 18 locos 1000 HP

16.62

6.84

9.78

4

Installation of fibre - optic cable Ruvu - Tanga (251 km)

1.61

1.61

4

Installation of Fiber Optic cable Isaka Kigali 350 km

11.06

6.84

4.22

4

Installation of fibre-optic cable Kaliua - Mpanda 210km

6.84

6.84

4

Feasibility study Buguruni/Wazo Hill Railw

ay

4.89

4.89

4

Feasibility study and detailed Design: New

1435mm gauge line DSM/KGM/M

ZA

5.00

5.00

4

Bridge strengthening Kaliua - Mpanda

1.27

1.27

4

Bridge strengthening Kilosa/K

idatu and Link Line

1.67

1.67

4

Procurement of Two W

agon Ferries Lake Victoria and Tanganyika

-

4

Bridge strenghthening Tanga - Arusha

-

4

Relaying Ruvu - M

ruazi Junctions (188 km)

-

Realignment of Makutupora/Aghondi (55 kms)

T

OT

AL

6

39.2

7

32

.69

8

3.9

3

95

.76

2

19.4

1

20

7.4

8



100

10.6

A

nn

ex 6

: T

AZ

AR

A's

Devel

op

men

t P

roje

cts

Dis

bu

rsem

ent

In U

SD

000

's

P

rio

rit

y

Proje

ct

Nam

e

Nam

e

of

Corrid

or

Len

gth

Km

Len

gth

to

b

e

develo

ped

K

m

Pla

nn

ed

Cost

FY

2007

/08

FY

2008

/09

FY

20

09

/10

FY

2010

/201

1

FY

20

11

/201

2

1

Permanent Rectification of land slides

and stabilization of railway form

ation

in location susceptible to slids

i.e

Mlimba-Makambako section (79km).

Tazara/DSM

975

79

27,377

401

7,966

7,966

6,011

5,033

1

Signalling and communication

Tazara/DSM

975

670

22,487

117

7,059

7,059

5,104

3,148

1

Procurement

and Rehabilitation of

lomomotives wagons and coaches.

Tazara/DSM

975

44,095

7,626

11,537

9,582

8,702

6,648

2

Institution Suport

Tazara/DSM

975

1,133

- 155

978

- -

3

Rehabilitation

of

bridges

culverts,

tunnels, tretm

ent of garders

Tazara/DSM

975

970

29,334

-

-

9,778

9,778

9,778

3

Rail welding Ilongo-Tunduma

Tazara/DSM

975

185

13,688

- -

1,955

1,955

9,778

4

Feasibility study and design Lindi-

Mtwara-Makambako

Tazara/DSM

800

800

3,910

-

-

-

1,955

1,955

4

Feasibility

&

design

Tunduma-

Sumbaw

anga-Kigoma& Sumbaw

anga-

Kasanga

Tazara/DSM

700

700

3,422

-

-

-

1,955

1,467

4

Procurement of plant & equipment

Tazara/DSM

,040

- -

- 4,889

2,151

TO

TA

L

15

2,4

86

8,1

44

26,7

17

37,3

18

40,3

49

3

9,9

58



101

10.7

A

nn

ex 7

: T

PA

Pro

pose

d P

roje

cts

(US

D '

000)

Prio

rit

y

S.N

O.

PR

OJ

EC

T N

AM

E

DU

R

Pla

nn

ed

Cost

for

ph

ase

I

Ap

proved

Bu

dg

et

FY

20

07

/08

FY

20

08

/09

FY

2009

/10

FY

2010

/11

FY

2011

/12

FIN

AN

CIE

R

1

1

Grain Terminal operational improvement

3

9776.9

512.3

4632.3

4632.3

-

-

TPA/D

onor

1

2

Establishment of Port Community System

4

2186.9

-

546.7

546.7

546.7

546.7

TPA/W

B

1

3

Navigational Aids

3

799.6

-

199.9

199.9

199.9

199.9

TPA/D

onor

1

4

Maintenance Dredging Mwanza &

Kigoma ports

3

12596.2

938.6

2914.4

2914.4

2914.4

2914.4

TPA

1

5

Conversion of 2 berths at General cargo terminal to

handle bulk carriers

3

15688.8

-

7844.4

7844.4

-

-

GOT/D

onor

1

6

Dredging of DSM port entrance channel

3

13261.5

-

6630.7

6630.7

-

-

Donor

1

7

Lake Tanganyika Navigational Aids

4

4879.2

1219.8

1219.8

1219.8

1219.8

Donor

1

8

Constrction of Jetts Lake Ports

5

40459.4

1368.8

9772.7

9772.7

9772.7

9772.7

1

9

Construction of Mbegani port Bagamoyo

5

88000.1

22000

22000

22000

22000

UAE

1

10

Development of new Container Terminal Berths,

Berth 12 &

13 DSM ports

5

31286.8

7821.7

7821.7

7821.7

7821.7

TPA/D

onor

1

11

Replacement of SPM and Pipeline

3

31521.5

234.7

7821.7

7821.7

7821.7

7821.7

TPA/D

onor

1

12

Port M

aster Plan Study

1

1250.7

1250.7

-

-

-

-

WB

1

13

Intergreted Security System

ISPS-C

ode for sea ports

3

9745.9

5847.5

1949.2

1949.2

-

-

WB

1

14

Instutional Support

-

-

-

-

-

-

2

15

Improvement to M

arine services at DSM port

5

13015

2976.2

2509.7

2509.7

2509.7

2509.7

Donor

2

16

Improvement to Lake Ports' operations

5

5623.8

4063.4

390.1

390.1

390.1

390.1

2

17

Lake Nyasa Navigational Aids

2

4976

1244

1244

1244

1244

Donor

3

18

Rehabilitation and Replacement of Equipment at the

General Cargo Terminal

5

20887.9

4360.6

4131.8

4131.8

4131.8

4131.8

TPA



102

3

19

Rehabilitation of facilities at container terminal

3

12893.9

1564.3

5664.8

5664.8

-

-

TPA

3

20

KOJ im

provements

4

7257.9

234.7

2341.1

2341.1

2341.1

-

TPA/D

onor

3

21

New Port Control Tower

2

2709.4

782.2

963.6

963.6

TPA

3

22

Improvement to Tanga port operations

5

3079.1

946.4

533.2

533.2

533.2

533.2

TPA/D

onor

3

23

Improvement to M

twara port operations

5

8684.4

1235.8

1862.2

1862.2

1862.2

1862.2

TPA/D

onor

3

24

Consultancy Services for Replacement of SPM and

Pipeline system

DSM

1

625.7

625.7

-

-

-

-

TPA

3

25

Maintenance Dredging Berths 1 -11 DSM port

3

8387.9

1564.3

1705.9

1705.9

1705.9

1705.9

TPA

3

26

Maintenance Dredging Tanga port

5

6083.7

547.5

1062.2

1062.2

1705.9

1705.9

TPA

3

27

Construction of one stop block

1

2346.5

2346.5

-

TPA

3

28

Construction of Jetty on M

afia Island

5

10801.3

3128.7

1918.2

1918.2

1918.2

1918.2

GOT/D

onor

3

29

Installation of Flow m

eters Mtwara, M

wanza and

Musoma ports

1

547.5

547.5

-

-

-

-

TPA

3

30

Development of Mbegani Port -Bagamoyo port

(Feasibility Study)

1

391.1

391.1

-

-

-

-

TPA

3

31

Lindi port Siltation study

2

4960.9

15.6

-

-

2472.6

2472.6

3

32

Acqusition of additional Land at DSM Port

1

9605.1

9605.1

-

-

-

-

TO

TA

L

384

330.8

45

088.3

97

680.2

96

716.6

73

111.6

71

734.1

Exch

an

ge r

ate

use

d o

f 27th

Oct

ob

er

200

6:

1U

S$ =

TS

hs

1,2

78.4

9

Documents

THE UNITED REPUBLIC OF TANZANIA...10 Year Transport Sector Investment Programme (TSIP) Phase I 2007/08 – 2011/12 United Republic of Tanzania – Ministry of Infrastructure Development10