World Bank
BY AISIA RWEYEMAMU
14th December 2014
The World Bank wanted the construction to be done at the same location, at the Ubungo upcountry bus station, but the City Council suggested that the place was too congested and wanted it to be built at Mbezi Luis where it would not prejudice the road traffic.
The United States has lately warned aid-reliant Tanzania that further assistance, under a program that rewards countries for good governance, depended on its success in fighting corruption.
The remarks by the US envoy on Thursday were directed at President Jakaya Kikwete who is expected to give his position on parliamentary resolutions on the Tegeta Escrow saga, as MPs have demanded action on several cabinet ministers and top government officials.
A report by the Controller and Auditor General and investigations by the Prevention and Combating of Corruption Bureau (PCCB) raised questions on the way senior government officials authorized the transfer of at least $122 million from the escrow account to a disputed new owner of Independent Power (T) Ltd.
Tanzania won a five-year package of grants in 2008 worth $698 million under the U.S. government's Millennium Challenge Corporation (MCC) program, but the award of a second round of grants would now depend on the government's anti-graft effort.
An October report of the Budget Support Development Partners (DP) Group said the group of 12 international donors delayed budget support for Tanzania until findings of an investigation into charges of corruption in the energy sector were released and appropriate action taken.
The government denied the charges of graft related to the energy sector special central bank account in question. It affirmed in Parliament that due procedure was followed, but MPs were not impressed by those explanations.
The donor group - comprising Finland, Germany, Britain, Norway, Sweden, Denmark, the European Commission, Ireland, Canada, Japan, the World Bank and the African Development Bank - has so far disbursed $69 million of $558 million pledged, said Kati Manner, head of cooperation at Finland's embassy.
The city authorities announced yesterday that the World Bank rejected funding construction of Mbezi Luis upcountry bus station project, compelling the Dar es Salaam City Council (DCC) to look for new sources of funds for construction work to proceed.
Explaining the situation yesterday, City Mayor Dr Didas Masaburi said the World Bank insisted on implementing the project at the old Ubungo bus terminal, while the terminal had been shifted to Mbezi Luis as there is ample space and less contention with road traffic.
Hetold reporters that the construction of the new bus terminal for upcountry buses would no longer continue after the World Bank refused to disburse funds.
The bank is the third major donor agency to refuse to disburse funds since the IPTL Tegeta Escrow account surfaced in the House, after the European Union and then the United States.
“As of now we are depending on funds in terms of loan for construction of the terminal at Mbezi Louis from the Tanzania Investment Bank (TIB),” Dr Masaburi noted.
The city authorities sought audience with the bank but the latter insisted on the location, apparently believing that some city officials would benefit from making Ubungo terminal a redevelopment area.
“A total of Sh35bn is needed for the construction of the upcountry bus terminal at Mbezi Luis, at local standards,” he said, gesturing that raising it to international standards according to the World Bank, not less than $300m would be needed for the project.
TIB Development Bank has agreed to lend the City Council Sh30bn for constructing infrastructure to complement the new bus terminal, he said.
Currently upcountry buses continue using the Ubungo Bus Terminal in Dar es Salaam until the new bus terminal at Mbezi Luis is completed, following the completion of a feasibility study.
The city mayor admitted that the quality of service provided inside the Ubungo bus terminal doesn’t met required standards, saying that the reason is the low amounts of fees charged, at Sh200 per head.
In August last year, Tanzania Bus Owners Association (TABOA) threatened to withdraw their services if the municipal authorities wouldn’t address the challenges of basic facilities like toilets and kiosks at the terminal.
Extreme poor conditions were fueled by demolitions of structures ordered by the government so as to pave the way for work on the Dar Rapid Transit system.
However the relocation of UBT to Mbezi Lois was long overdue but the Ubungo erminal is still in use, lacking necessary basic infrastructure and utilities.
According to TABOA, the current terminal accommodates up to 500 buses, over 2,000 travelers and 600 bus terminal staff.
Meanwhile Dr Masaburi has reacted over the ongoing Escrow saga, pointing a finger at Mechmar Corporation of Malaysia as being the root cause for all problems that are being experienced today.
SOURCE: GUARDIAN ON SUNDAY
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