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Sunday, October 4, 2015

Phase II gets over Tsh 300bn in AfDB funding

Dar es Salaam traffic.jpg

Traffic congestion in Dar Es Salaam!

The African Development Bank Group board of directors has approved $141.71m for the second phase of the Dar es Salaam Bus Rapid Transit (BRT) system project.


Out of the funds, which were approved on September 30, this year, $97.42m is a loan from the AfDB market window while $44.29m is a loan from the Africa Growing Together Fund (AGTF).

The financial support aims at supporting the country in decongesting the city of Dar es Salaam, a commercial hub for Tanzania and the East African region, by enabling it attain a better infrastructure system, strengthen its competitiveness and boost the country’s tourism.

The project, to be implemented within 36 months, is expected to improve mobility and accessibility in the city through the provision of enhanced transport facilities which are reliable, safe, efficient and cost-effective.

The board approved two loans totalling $141.71 million to finance the second phase of the Bus Rapid Transit (BRT) System Project.

Contrary to public perception that all the six BRT phases will be sponsored by the World Bank (WB), the Dar es Salam Bus Rapid Transit (DART), the agency set to supervise the project’s activities, clarified that any institution could support the project.

The first phase which is currently on final stages for fully operations, stretching 20.9 kilometres and cost Sh39.6 billion was sponsored by WB, according to the Agency Engineer, Mohamed Kuganda.

Again, design activities for the second and third phases had already conducted by WB but construction activities will be carried on by AfDB, he went further.

He yesterday clarified to this paper that: “AfDB felt supporting the project. We came across that its condition terms are affordable and let us apply for the sponsorship. But this is not the end of WB support as it might once again sponsor any other phase.”

Responding on the commencement of the phase, from Kariakoo to Mbagala, Eng. Kuganda said it depends on when AfDB will acquire the contractor; saying that the process might take a year and above duration time since it is an international tender.

 According to data made available by AfDB, showed that $97.42 million loan is from the Bank market window while $44.29 million is from the Africa Growing Together Fund (AGTF); both to support Tanzania government's efforts in decongesting the city.

Asked if both AGTF and AfDB institutions became willing to sponsor the project, Eng. Kuganda negated; saying it was only the later that signed the agreement but seeking help from other friends. 

Part of AfDB document read that, the project scheduled to be implemented within 36 months, is expected to carry up to 495,000 passengers per day and reduce travel time.

In addition, the use of modern BRT buses, which use cleaner fuels, will significantly reduce roadside concentration of greenhouse gas emissions thereby improving air quality and subsequently safeguarding people's health.

It was further explained that the current public transport system is inadequate to provide reliable, safe and efficient public transport system for the estimated 5 million Dar es Salaam city inhabitants who generate about 60 percent of the countries' revenue and account for 70 percent of the city's public transport users.

The Bank's contribution to the project represents 88.9 per cent of the total estimated cost of US $159.32 million, according to AfDB statement, while Tanzanian government will provide the remaining 11.1 percent.

The project, according to the document,  is aligned to Tanzania's Vision 2025, the First Five-Year Development Plan-2010-2015, and the Big Result Now (BRN) initiative, which underscores the need for increased investment in transport infrastructure with a view to improving social-economic well-being of people and thereby contributing to poverty reduction.
SOURCE: GUARDIAN ON SUNDAY

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