The Minister for Finance and Planning, Dr Philip Mpango
The Minister for Finance and Planning, Dr Philip Mpango told the
National Assembly that the $ 7.6 billion project (Sh15 trillion)
undertaking was excessively expensive to be financed by government
funds.
The minister was compelled to provide explanations as MPs from both
sides of the House demanded to know why the project has not kicked off
despite promises that it would be launched in September last year.
Dr. Mpango remained tight-lipped as to when the project would
start, just stating that “It is not true that the government is not
looking for other source of funds for the project. Let me tell
Tanzanians that we cannot afford it using our own means.”
He explained further that for the project to be viable it is
designed to connect other East African countries of Rwanda, Burundi and
the Democratic Republic of Congo (DRC).
His explanations came as a cross sections of legislators from
various regions that depend much on rail transport teamed together to
push the government to start implementing the project.
The central line is the most important railway line in Tanzania,
running west from Dar es Salaam to Kigoma on Lake Tanganyika via Dodoma.
A branch leads to Mwanza on Lake Victoria from Tabora, a dormant
trading centre.
Last year, the government announced that a standard gauge railway
line would be constructed from Dar es Salaam to Isaka in north western
part of the country and Kigali, the capital of Rwanda, with a link to
Burundi running from Keza to Musongati through Gitega.
In May last year, then Transport Minister Samwel Sitta issued a
parliamentary statement declaring that a Chinese consortium led by China
Railway Materials Inc. had been awarded a $7.6 billion contract to
build a 2,561 km standard gauge railway from Dar es Salaam to Burundi,
Rwanda and DR Congo.
The consortium would finance 10 per cent of the total costs, while
financial adviser Rothschild was finalizing procedures for sourcing the
remaining funds from commercial banks.
But a group of MPs in the latest session of Parliament said this
was mere political rhetoric and grouped to form a Railways Caucus,
involving MPs from various political parties.
The group is chaired by Msalala MP Ezekiel Maige (CCM) while Kigoma Urban MP Zitto Kabwe (ACT-Wazalendo) is its secretary.
Nzega Urban MP Hussein Bashe (CCM) emerged a passionate member of
the caucus, challenging the government to come up with a detailed plan
for the project.
Declaring “ No rail, no budget”, he said that the group would block
the coming 2016/17 government budget if no clear plan for the central
railway is tabled in the House.
But the Finance Minister later explained the project was to be
undertaken by support of the World Economic Forum (WEF) and the African
Development Bank (ADB), as the central corridor was found to be the most
commercially viable railway project in the sub-region, followed the
Beira corridor railway project.
Dr Mpango admitted that there’s a rush towards tapping vast
resources in DRC, noting that WEF and ADB are working closely with
Tanzania to raise the required funds.
Under the original plan, fourth phase president Jakaya Kikwete was scheduled to launch the construction project on September 15.
However, in November, the Reli Assets Holding Company (Rahco)
released a report saying the launch had been delayed due to “the busy
campaigning timetable Mr Kikwete and the launch will be undertaken by
the new President, Dr John Magufuli.”
Yesterday Dr Mpango told reporters that what he knows is that the
contract was only revoked after the Public Procurement Regulatory
Authority (PPRA) found that there were serious flaws in its tendering.
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