Parliamentary Committee Warns Against Costly Government Contracts

Parliamentary Committee Urges Institutions to Curb Costly Contracts

Tanga, March 16, 2025 – The Parliamentary Committee for Infrastructure Development has issued a strong caution to government institutions, urging them to avoid contractual agreements that could lead to significant financial losses and budget overruns.

During the conclusion of the committee’s oversight visit to institutions under the Ministry of Transport— including the Tanzania Railways Corporation (TRC), Tanzania Ports Authority (TPA), and Tanzania Airports Authority (TAA)—Committee Chairman Mr. Deusdedit Kakoso emphasized the need for prudent financial management.

“Institutions must ensure they engage in realistic and well-structured contracts. We need to prevent agreements that burden the government with excessive costs,” Mr. Kakoso stated on Thursday.

Concerns Over Rising Project Costs

The chairman cited an example where an initial contract estimated at 95 billion Tanzanian shillings eventually exceeded 100 billion shillings. He warned against such cost escalations, which could drain government resources.

Additionally, he urged senior executives in the Ministry of Transport to address bureaucratic inefficiencies that lead to inflated government expenditures and delayed project completion. Such inefficiencies, he stressed, must be eliminated to ensure projects remain within budget and are completed on schedule.

Progress in Railway Development and Infrastructure Enhancement

Despite these concerns, Mr. Kakoso commended the TRC for leveraging Tanzanian youth task forces to expedite the construction of the Standard Gauge Railway (SGR). He praised this approach for maintaining cost-effectiveness while accelerating project completion.

He further encouraged the Tanzania Roads Agency (TANROADS) to adopt a similar methodology to reduce road construction costs. Addressing railway infrastructure, he lauded TRC’s efforts in expanding rail transport in the northern region, aligning with President Samia Suluhu Hassan’s vision of strengthening connectivity across Tanzania.

However, Mr. Kakoso expressed concerns over inadequate budget allocations for the Ruvu-Korogwe-Moshi-Arusha railway project, noting that the funds assigned do not match the strategic importance of the route.

“This railway line is crucial as it will help lower living costs for people in the northern region by providing an affordable and efficient transport alternative,” he emphasized.

Major Railway Rehabilitation and Expansion Plans

TRC’s Director of Infrastructure, Engineer Machibya Massanza, detailed the government’s ambitious railway rehabilitation and expansion agenda. He revealed that TRC had signed contracts worth $132.54 million with China Civil Engineering Construction Corporation (CCECC) to rehabilitate 533 kilometers of track.

The project includes:

• Replacing outdated light rails with stronger ones,

• Enhancing bridge load capacity from 13 tonnes to 18.5 tonnes per axle,

• Installing 80-pound per yard (40 kg/m) heavy rails.

Once completed, these upgrades will boost train speeds from the current 20 km/h to 75 km/h, ensuring more efficient and safer transportation for both passengers and freight.

Additionally, Eng. Massanza highlighted the completion of feasibility studies and designs for a new Standard Gauge Railway (SGR) line connecting Tanga to Musoma, covering 1,028 kilometers. This critical railway route is set to link Tanga Port with key mining regions, including Magadi Mines (Engaruka), Mijingu Phosphate, and Nickel (Dutwa), passing through Kilimanjaro, Arusha, Manyara, Shinyanga, Simiyu, Singida, and Mara regions.

Efforts to secure funding for these transformative railway projects are ongoing, with private sector participation expected to play a significant role in financing and implementation.

Expansion of Cargo Transport Trials on SGR

Meanwhile, TRC’s Director of Operations, Mr. Focus Sahani, shared promising updates on the Standard Gauge Railway’s operational expansion. He confirmed the successful trial runs of cargo transport on the SGR up to Morogoro and announced that similar trials to Dodoma were imminent.

“The successful completion of these trials will be a game-changer in cargo transportation from the central zone to Dar es Salaam,” Mr. Sahani stated.

He further disclosed that TRC had already acquired 264 new cargo train carriages, reinforcing the corporation’s commitment to enhancing freight transport efficiency and capacity across Tanzania.