Finance and Planning Deputy Minister, Dr Ashatu Kijaji told the National Assembly on Monday that completion of the SGR project will help the government to save over 6.7bn/- spent annually for repairing roads.
Dr Kijaji was responding to queries raised by Members of Parliament during a week-long debate on the Second Five-Year National Development Plan (2016/17 – 2020/21) and national budget estimates for the 2020/202.
She said the standard gauge railway project, purchase of aircrafts and the Stiegler's Gorge Hydroelectric Power project in Rufiji have in total spent 36 percent of 2019/2020 development budget.
She said implementation of the flagship projects have stimulated the economy since most of the construction materials such as cement and steel are sourced locally. She said more than 640 local contractors are directly engaged in the SGR project.
“We have offered tenders worth 664.7bn/- to local contractors. More than 9 million bags of cement will be used for implementation of the 522-kilometre-long Dar es Salaam-Morogoro and Morogoro-Makutupora section of the SGR project”, said Dr Kijaji adding all the cement used in the project is manufactured locally.
She said the project has offered 13,117 jobs until September this year, adding more jobs will be created in future.
Upon completion, the SGR is expected to usher in the country, for the first time, a fast and modern passenger train with a speed of 160 kilemetres per hour and a freight train with a top speed of 120kilometres per hour.
The SGR will also help ease the flow of goods and people in the neighboring landlocked countries of Uganda, Zambia, the Democratic Republic of the Congo (DRC), Burundi and Rwanda.
The Deputy Minister informed that House that a total of 1,456 jobs have been created through implementation of the Stiegler's Gorge Hydroelectric Power project, insisting most of the tenders will be given to local contractors.
Construction of the dam and hydroelectric power plant is expected to be completed in 2022 at a cost of $1.38 billion (6.5trn/-). The plant will produce 2,115 MW.