Turkey company signs $1.1bn TZ railway deal

Dar es Salaam. Tanzania has signed a deal with Turkish and Portuguese construction companies to undertake the Dar es Salaam-Morogorostandard gauge railway project.

The Reli Assets Holding Company (Rahco), Turkey’s Yapi Merkezi in and Portugal’s Mota-Engil Africa yesterday inked the agreement for the Sh2.6 trillion project to construct a 300km part of the Central Railway.

The railway runs from Dar es Salaam to Kigoma and Mwanza with a branch to Mpanda.

The pact involves the construction of the 205km main way and 95km of interchange railway as well as railway stations along the way.

Yapi Merkezi and Mota-Engil Africa won the tenders out of 40 bidders after meeting financial and technical requirements. They will also have to build power infrastructure from Dar es Salaam to Morogoro and at interchange stations plus railway stations.

Six stations will be built for passengers and the other six for interchange railway.

Rahco acting managing director Masanja Kadogosa, Yapi Merkezi’s Erden Arioglu and Mota-Engil Africa’s Mariano Tonello signed the pact.

Works, Transport and Communications minister Makame Mbarawa who witnessed the signing said the construction was scheduled to kick off after one and half months and would be completed in the next two and half years.

The project will be financed by the government and foreign lenders. “With Sh1 trillion, of which already we have in hand, we will start the construction. But we appeal to donors to pool money for the project.” said Prof Mbarawa.

It was the government duty to seek money from various sources including donors and creditors for the project, he said. “We hope to complete the project as scheduled.”

According to Mr Kadogosa, upon the project completion the train speed will be running at 160km per hour, up from the current 30km per hour.

This will make Tanzania the second country after Morocco to have a the fastest train in Africa. Morocco is underway to have trains whose speed will be 200 km per hour.

He explained that the modern railways would have the capacity to transport 17 million tonnes of cargo annually, more that thrice the current 5 million tonnes.

“The construction of the Dar es Salaam-Morogoro standard gauge is just the beginning… more is coming as we are committed towards creating a country with modern infrastructure.”

He said other four parts of the railway to Mwanza City will also be constructed.

They include those from Morogoro to Makutupora (336km), Makutupora to Tabora (294km), Tabora to Isaka (133km) and Isaka to Mwanza (248km)

According to Prof Mbarawa, tenders for constructing the segments have been floated and are expected to be opened in April this year.

But he warned that the government would not accept bogus companies.

“Those who fail to manage the country’s projects as the law and procedures state will be deregistered immediately and their names made public to deter those who might be tempted to engage in such acts,”he once said.

Last April, China assured President John Magufuli of full support in the construction of the Central Railway Line to the standard gauge.

The Chinese ambassador to Tanzania, Dr Lu Youqing , met the President at the State House and told him that his country was ready to cooperate with Tanzania to implement the $6.8 billion project covering 2,561km.