Compensation challenges haunts SGR projec

04Nov 2018
James Kandoya
Dar es Salaam
Guardian On Sunday
Compensation challenges haunts SGR projec

TANZANIA is yet to compensate residents residing along the central railway line on which the standard gauge railway (SGR) line is being constructed.

prime minister kassim majaliwa

TRC director general Masanja Kadogosa revealed this yesterday to Premier Kassim Majaliwa, who was on an inspection tour of the SGR project.

He said the project, whose construction had now reached 47 per cent was still faced with compensation challenges.

The much-awaited SGR from Dar es Salaam to Morogoro is being undertaken by a Turkish firm, Yapi Merkez, and a Portuguese company at a cost of Sh2.7trillion ($1.2billion), now expected for completion in April next year.

The firms are also undertaking a 422-kilometre line from Morogoro to Makutupora in Dodoma at a cost of $1.92 billion.

For his part, Premier Kassim Majaliwa said when at the construction camp at Soga in Kibaha district, Coast region, that completion of the project will facilitate quick movement of passengers as well as goods.

Upon its completion, the SGR train is expected to transport between 17-25 million tonnes annually.

Tanzania requested the Turkish state-owned Export Credit Bank (Eximbank) to help finance the 400-km stretch of the new railway, which is also being funded by the government of Tanzania.

Construction of the project is divided into four parts and put out separate tenders to design it. The three remaining sections are Makutupora-Tabora (294 km), Tabora-Isaka (133 km) and Isaka-Mwanza (248 km).

The country plans to spend $14.2 billion over the next five years to build the 2,561-km SGR connecting the main port of Dar es Salaam with land-locked neighbours, including the Democratic Republic of Congo, Rwanda and Uganda.

In July 2016, China, through its Exim Bank, agreed to advance Tanzania $7.9 million for the railway project despite its key firms having been omitted from the project.

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