Standard gauge railway tenders announced

 

THE government has invited bidders for construction of the remaining stretch of $7.6 billion standard gauge railway line from Morogoro to Mwanza which is expected to be carried out in four phases.

Reli Assets Holding Company Limited (RAHCO) announced four tenders for design and build contract for the remaining stretch of the railway line that will link Dar es Salaam port with the landlocked neighbouring Rwanda, Burundi and Eastern part of DR Congo and facilitate transport in the central corridor.

The works include design and build contract for 336 kilometre stretch of the standard gauge railway (SGR) line from Morogoro to Makutopora, a 294 kilometre stretch from Makutopora to Tabora, a 133 kilometre long Tabora to Isaka and works contract for 294 kilometre stretch from Isaka to Mwanza.

RAHCO had announced tender for design and build contract for the 202 kilometre stretch of the SGR line from Dar es Salaam to Morogoro in September, this year.

The construction work is expected to begin within the current financial year and the government has set aside 1.0tri/- in the current financial year as initial cost of the project.

Tanzania wants to make optimal use of its long coastline and upgrade the railway network and roads to serve growing economies in the landlocked heart of Africa. The government secured a $7.6 billion loan from China’s Export-Import Bank (Exim) in July to build the SGR line that will link it to its neighbours.

The State House said in a statement that Exim had agreed to provide the concessional loan to finance construction of a major standard gauge railway line, which will start in this financial year following talks between President John Magufuli and Exim Bank President Liu Liange in Dodoma.

“The planned standard gauge railway line will improve regional trade links and help to boost the economies of Tanzania and its landlocked neighbours including Uganda, Rwanda, Burundi and the Democratic Republic of the Congo (DRC),” the statement said.

Construction of the standard gauge railway line will be one of the biggest project that is expected to be carried out by the government under President John Magufuli and it’s expected to change the phase of the transport industry and above all help in improving trade.

Transport is among key drivers of growth in Tanzania and the SGR line is expected to stimulate growth and development in the nation.