United Republic of Tanzania
Prime Minister’s Office for Regional Administration and
Local Government (PMO-RALG)
DART Agency
Dar Rapid Transit (DART) Project
Phase 1
Project Information Memorandum
Final version
May 2014
Transaction Advisors:
With support from:
Dar Rapid Transit (DART) Project – Phase 1
Project Information Memorandum
2 / 51
Disclaimer
This Project Information Memorandum (PIM) has been prepared by RebelGroup International B.V. and
VELMA Law (the “Transaction Advisors”) on behalf of their client, the DART Agency, pursuant to their
mandate as Transaction Advisors to the DART Agency for the procurement of bus operation, fare collection
and fund management services for the development of Phase 1 of the DART system (the “Project”).
This PIM does not purport to be all-inclusive or to contain all of the information that a prospective
participant may consider material or desirable in making its decision to participate in the tender.
No representation or warranty, express or implied, is made, or responsibility of any kind is or will be
accepted by the Transaction Advisors, the DART Agency, the Government of the Republic of Tanzania or
any of its agencies, with respect to the accuracy and completeness of the information contained in this
document.
The DART Agency, by itself or through its Transaction Advisors, may amend or replace any of the
information contained in this PIM at any time, without giving any prior notice or providing any reason.
In furnishing this PIM, the Transaction Advisors, the DART Agency, the Government of the Republic of
Tanzania or any of its agencies undertake no obligation to provide recipients with access to any additional
information, or to update, or to correct any inaccuracies which may become apparent in this PIM or any
other information made available in connection with the Project prior to the issuance of the bidding
documentation. Additional information shall be provided at appropriate times during the formal tender
process.
No person has been authorised to give any information or make any representation not contained in this PIM
and, if given or made, any such information or representation may not be relied upon as having been
authorised by the Transaction Advisors, the DART Agency, the Government of the Republic of Tanzania or
any of its agencies.
All information in this PIM is qualified by the terms and conditions of the bidding documentation and any bid
bulletins that may be issued until the submission of bids. In case of any conflict between the information and
terms in this PIM and the bidding documentation and/or the draft concession agreements, those set out in
the bidding documentation and/or the draft concession agreements shall prevail.
This PIM does not constitute a solicitation of bids for any aspect of the Project. Solicitations of bids and
bidding guidelines shall be provided in the bidding documentation.
May 2014
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Abbreviations and acronyms
AF
AG
AFCS
BRN
BRT
CCTV
CPI
CSC
DARCOBOA
DART
EF
FF
FSA
FY
GDP
GPS
GoT
ITS
MAB
MoW
NKRAs
O&M
PA
PDB
PMO-RALG
POS
PPP
PPRA
RF
RFB
RFEOI
RFP
RoW
RTPI
SF
SUMATRA
TANROADS
TAZARA
TEMESA
TF
TIC
TRA
TZS
USD
UWADAR
WB
Agency Fee
Attorney General
Automated Fare Collection System
Big Results Now
Bus Rapid Transit
Closed-Circuit Television Camera
Consumer Price Index
Contactless Smart Card
Dar es Salaam Commuter Bus Owners’ Association
Dar Rapid Transit Agency
Equipment Fee
Feeder Passenger Fee
Full System Acceptance
Financial Year
Gross Domestic Product
Global Positioning System
Government of Tanzania
Intelligent Transportation System
Ministerial Advisory Board
Ministry of Works
National Key Results Areas
Operation and Maintenance
Public Announcement
Presidential Delivery Bureau
Prime Minister’s Office – Regional Administration and Local Government
Point of Sales
Public-Private Partnership
Public Procurement Regulatory Authority
Revenue Fee
Road Fund Board
Request for Expressions of Interest
Request for Proposals
Right of Way
Real-Time Passenger Information
Support Service Fee
Surface and Marine Transport Regulatory Authority
Tanzania National Roads Agency
Tanzania-Zambia Railway Authority
Tanzania Electrical, Mechanical and Services Agency
Trunk Km Fee
Tanzania Investment Centre
Tanzania Revenue Authority
Tanzania Shilling
United States Dollar
Association of Transporters in Dar es Salaam
World Bank
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Contents
1
Foreword
7
2
Executive Summary
8
3
Background
3.1
Tanzania
3.2
Dar es Salaam
3.3
Current public transport system
3.3.1
Daladalas
3.3.2
Commuter trains
3.3.3
Ferry
3.3.4
Bodabodas
3.3.5
Bajajis
3.3.6
Challenges
11
11
13
15
15
16
17
17
18
18
4
DART system
4.1
Overview
4.2
Demand
4.3
Infrastructure
4.3.1
Stations
4.3.2 Depots
4.3.3
Work progress status
4.4
Bus services
4.4.1 Trunk services
4.4.2 Feeder services
4.5
Automated Fare Collection System (AFCS)
4.5.1 Overview
4.5.2 Acquiring a smart card
4.5.3 Using trunk services
4.5.4 Using feeder services
4.5.5 Exiting the system after use of the bus services
4.5.6 Fares
4.6
Control Centre
4.6.1 Overview
4.6.2 Scheduling function
4.6.3 Controlling function
4.6.4 Reporting function
4.7
Fund management
4.8
Institutional setup
4.8.1 DART Agency
4.8.2 TANROADS
4.8.3 SUMATRA
4.8.4 Traffic police
20
20
21
21
21
26
27
27
27
29
30
30
31
32
32
32
32
32
32
33
33
34
34
34
34
36
36
36
5
Implementation strategy
5.1
Operational ramp-up
5.1.1
Interim stage
5.1.2
Stage A
5.1.3
Stage B
5.1.4 Stage C
5.2
Daladala transition policy
5.2.1
Awareness and support
5.2.2 Reallocation of daladala routes
37
37
37
37
37
38
38
38
38
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5.2.3
Reorganisation of the industry
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38
6
Contractual structure
6.1
Overview
6.2
Service Provider contract
6.2.1 Trunk services component
6.2.2 Feeder services component
6.2.3 Equipment component
6.2.4 Support service component
6.2.5 Remuneration
6.3
Fund Manager contract
40
40
40
41
41
42
43
44
45
7
Investment framework
7.1
Foreign investment policy
7.2
Finance regime
7.3
Tanzania Investment Centre
7.4
PPP regime
7.5
Procurement regime
7.6
Big Results Now (BRN)
7.7
Local content requirement
7.8
Tax regime
7.9
Employment regime
46
46
46
46
47
48
48
49
49
49
8
Tendering process
8.1
Overview
8.2
Service Provider tendering process
8.3
Fund Manager tendering process
50
50
50
50
9
Contact
51
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Figures
Figure 1.
Figure 2.
Figure 3.
Figure 4.
Figure 5.
Figure 6.
Figure 7.
Figure 8.
Figure 9.
Figure 10.
Figure 11.
Figure 12.
Figure 13.
Figure 14.
Figure 15.
Figure 16.
Figure 17.
Figure 18.
Figure 19.
Figure 20.
Figure 21.
Figure 22.
Figure 23.
Figure 24.
Figure 25.
Figure 26.
Figure 27.
Figure 28.
Figure 29.
DART System Map ............................................................................................................... 8
DART System Phase 1 .......................................................................................................... 9
Map of Tanzania .................................................................................................................. 11
Tanzania GDP Annual Growth Rate .................................................................................... 12
Tanzania Consumer Price Index and Inflation Rate .............................................................. 12
Tanzania Shilling Historical Exchange Rate to the United States Dollar ................................ 13
Map of Dar es Salaam’s Road Network ............................................................................... 14
Daladala in Dar es Salaam ...................................................................................................15
Map of Main Daladala Routes ............................................................................................. 16
Dar es Salaam Commuter Train ........................................................................................... 17
Kivukoni – Kigamboni Ferry ................................................................................................. 17
Bodabodas ......................................................................................................................... 18
Bajaji in Dar es Salaam........................................................................................................ 18
Traffic jam in Dar es Salaam ............................................................................................... 18
DART System Map ............................................................................................................. 20
Trunk Station Type A .......................................................................................................... 24
Trunk Station Type B .......................................................................................................... 24
Trunk Station Type C .......................................................................................................... 24
Trunk Station Type D .......................................................................................................... 24
Shekilango Station Layout.................................................................................................. 25
Kivukoni Terminal Layout ................................................................................................... 26
Jangwani Bus Depot Layout ................................................................................................27
Trunk Bus Layout (Indicative) ............................................................................................. 28
Phase 1 Trunk Services Map ................................................................................................ 29
Feeder Bus Layout (Indicative) ............................................................................................ 29
Phase 1 Feeder Services Map .............................................................................................. 30
Control System................................................................................................................... 34
DART Agency Organisational Chart .....................................................................................35
Service Provider procurement process ................................................................................ 50
Tables
Table 1.
Table 2.
Table 3.
Table 4.
Table 5.
Table 6.
Phase 1 Operational Highlights ........................................................................................... 21
Phase 1 Stations ................................................................................................................. 23
Phase 1 Trunk Services ....................................................................................................... 28
Phase 1 Feeder Services ...................................................................................................... 30
Fare Schedule ..................................................................................................................... 32
Service Provider Fees Overview .......................................................................................... 44
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1 Foreword
“The Government of Tanzania has a clear vision in mind: to
provide a modern, efficient and environment-friendly public
transportation system at a reasonable cost to the residents of
Dar es Salaam through a successful and mutually beneficial
partnership with proven successful private Service Providers.
This vision is now about to be realised with the DART project.
I am particularly excited and proud at the idea of Tanzania
becoming the first African country to effectively embark upon
a large-scale BRT project through Public-Private Partnership,
thus paving the way for innovative urban transport solutions
for fast-growing cities across the continent.
In addition to providing a high-quality, accessible and affordable mass transit system and improving urban
mobility for the residents of Dar es Salaam, the Government of Tanzania’s ambition is, making use of the
country’s globally unique mobile payment ecosystem, to develop the DART transport smart cards into a
completely open contactless payment scheme to be used not only for other modes of transportation, but also for
small payments at retailers, loyalty programmes and whatever creative uses your business can come up with.
The only limit is your imagination in innovation-friendly Tanzania !
Finally, the DART project is meant to illustrate the Government of Tanzania’s commitment to attract and retain
investment from both foreign and domestic sources and to reinforce the role of the private sector as the main
driver and engine of sustainable economic growth. The multiple implications thereof are a completely open and
transparent selection process, a healthy level of return for investors and a reliable, trustworthy and determined
public partner, the DART Agency.
As this Project Information Memorandum will reveal, the DART project is a one-of-its-kind investment
opportunity in a dynamic, attractive and conducive business environment underpinned by effective and investorfriendly political, economic and social policies. I am pleased and honoured to invite you to come and see for
yourself how much Tanzania’s friendly human capital is eager to make your business and our country grow
together.”
Welcome to Tanzania – Come grow with us !
Honorable Hawa A. Ghasia
Minister of State in the Prime Minister’s Office
for Regional Administration and Local Government
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2 Executive Summary
The Government of Tanzania has set itself an objective to create a quick, clean and cost-effective solution to
its capital city’s existing traffic problems. Public transport in Dar es Salaam is currently essentially provided
by about 5,200 privately-owned so-called daladala buses. This basic transport solution is starting to show its
limits due to increased congestion on the city’s main arterial roads. The Dar Rapid Transit (DART) system is
therefore being introduced with the aim and ambition to provide a better, more modern and more efficient
public transport service to the residents of Dar es Salaam. The DART system, which will ultimately become
the core public transport provider in the city, is part of the Big Results Now (BRN) initiative launched by His
Excellency President Dr. Jakaya Mrisho Kikwete to fast-track the delivery of the step-change required to
transition the country from a low to middle-income economy using joint capacity of the international and
local private sector expertise.
The DART system is a Bus Rapid Transit (BRT) scheme, i.e. a high-capacity transport solution which
functions in a way very similar to a tramway, except that the vehicles used for transporting passengers are
buses. The DART system consists of trunk buses operating on exclusive bus lanes at the centre of major
roads. Additionally the system makes use of feeder buses which operate on mixed traffic lanes and which
feed passengers to the trunk system. The DART system is a closed BRT system, meaning that passengers
need to access stations and terminals through turnstiles, where they pay a fare by means of a Contactless
Smart Card (CSC).
The DART system is planned to be built in six phases as follows.
Figure 1.
DART System Map
Source: DART Agency
Currently Phase 1 of the DART system is being implemented, which consists of:
 20.9 kilometres of trunk lanes;
 57.9 km of feeder routes;
 5 terminals;
 27 stations;
 7 feeder stations;
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
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3 connector stations with the existing public transport system;
2 bus depots.
Figure 2.
System Phase 1
DART
SYSTEMDART
(PHASE
I)
FR004
Mbezi
Kimara Terminal
Terminal (5)
Station with overtaking lane (23)
Station without overtaking lane (4)
Feeder Station (7)
Feeder Route
Korogwe
Bucha
Feeder Route Terminal
Kawe
Baruti
Connector Station (3)
Kona
Kibo
Ubungo Maji
Chuo Kikuu
Mwenge
Ubungo Terminal
FR005
Shekilango
FR007
Mabibo
Urafiki
Manzese Tip Top
Manzese
FR008
Kagera
FR009
FR010
Manzese Argentina
Makumbusho
Mwembe Chai
Usalama
FR001
Masaki
Morocco Terminal
Magomeni Mapipa
Jangwani
Fire
Kariakoo Terminal
Muhimbili
Msimbazi Police
DIT
Kisutu
City Council
Posta ya Zamani
Kivukoni Terminal
Magogoni Ferry
Source : DART Agency
The estimated maximum capacity of the Phase 1 infrastructure is 28,000 passengers per direction per hour.
The estimated maximal initial demand during the morning peak hour at Jangwani is 17,000 passengers per
hour. This will position the DART system as one of the BRT systems with the highest demands in the world
right from inception.
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The Phase 1 infrastructure – bus ways, stations, terminals and depots – is being implemented by the
Tanzania National Roads Agency (TANROADS) through private contractors (STRABAG for the main part)
and consultants (SMEC for the main part). Financing is being provided through a credit of the World Bank
(WB) to the Government of Tanzania (GoT). Currently (May 2014) 60% of the overall works have been
implemented. Completion of all works is planned for end 2015. However the main trunk corridor on
Morogoro Road from Kimara to Kivukoni (15.4 km) as well as the Jangwani depot will be ready for use by end
2014. On this main section it is planned to commence operations in 2015.
The core of Phase 1 operations will be provided under a Public Private Partnership arrangement. The DART
Agency, under the Prime Minister’s Office – Regional Administration and Local Government (PMO-RALG), is
the procuring and management entity for the services to be provided by private sector companies. The
DART Agency currently intends to procure the services through one Service Provider contract and one Fund
Manager contract:

The Service Provider contract will comprise the following 4 components:
o Trunk services component;
o Feeder services component;
o Equipment component;
o Support service component;

The Fund Manager contract will comprise the provision of escrow account management services.
The DART Agency will hold an open and transparent competitive bidding process to procure those services
from the private sector. The present Project Information Memorandum is aimed at providing initial project
information to private parties interested in providing those services.
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3 Background
3.1 Tanzania
Tanzania measures 885,800 square kilometres. It lies between 1 and 12 degrees south of the Equator and it
borders to its east on the Indian Ocean, to the north on Kenya and Uganda, to the west on Rwanda, Burundi,
DRC, Zambia and Malawi and to the south on Mozambique. Its climate is tropical.
Figure 3.
Map of Tanzania
Source: TANROADS
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The United Republic of Tanzania was formed in 1964 as a merger of Tanganyika, the mainland, and
Zanzibar, a group of islands to the east of the mainland. The 2012 census counted a population of 44.9
million people, up from 34.4 million in 2002. Average annual growth of population was 2.7% over the ten
years. Average population density is 51 persons per square kilometre.
Tanzania’s economic growth rate is amongst the highest in the world. The average annual growth rate was
7% between 2002 and 2012. The key factors explaining Tanzania’s strong and steady performance include
the rapid growth of a number of economic sectors (communications, financial services, construction, oil and
gas, mining, manufacturing and retail), a resilient domestic demand and the economy’s limited dependence
on external trade. Despite its low growth rate, agriculture is also a driver of growth due to its large share of
GDP.
Figure 4.
Tanzania GDP Annual Growth Rate
Source: www.tradingseconomics.com / National Bureau of Statistics of Tanzania
Historically quite high, Tanzania’s overall rate of inflation has been steadily declining over the past few
months and is expected to be below 6% in 2014.
Figure 5.
Tanzania Consumer Price Index and Inflation Rate
Source: National Bureau of Statistics of Tanzania
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The value of the Tanzania Shilling (TZS) has been steadily depreciating against the United States Dollar
(USD) up and until the end of 2011. In the last two years however the exchange rate has remained
remarkably stable thanks to the shilling being strongly supported by an influx of foreign capital investments,
mostly driven by the recent discovery of important offshore gas reserves. This stabilised trend is expected to
continue in the foreseeable future as the development of the local oil and gas industry will guarantee a
sustained flow of hard currency revenues for the country.
Figure 6.
Tanzania Shilling Historical Exchange Rate to the United States Dollar
Source: www.tradingeconomics.com / OTC Interbank
3.2 Dar es Salaam
Dar es Salaam is the commercial capital of Tanzania. An estimated 70% of the country’s GDP is generated in
Dar es Salaam. It is one of the fastest growing cities in the world.
Average annual growth from 2002 to 2012 was 5.6%. The census
Dar es Salaam ranked by New
of 2012 counted 4.4 million inhabitants, up from 2.5 million in
York Times among Top 52 Places
2002. The city’s population is estimated to grow to at least 6
to Go in 2014
million inhabitants by 2030 and 10 million by 2050.
“Tanzania may be best known for
the snow-capped peaks of Mount
The Dar es Salaam metropolitan area covers a large part of the
Kilimanjaro and the game-packed
Dar es Salaam region with a total area of 1,391 square kilometres
plains of the Serengeti, but the
and a population density of 3,133 per square kilometre.
real pulse of the country is found
Administratively the city is divided into three municipalities,
in its largest city, Dar es Salaam.”
Kinondoni to the north, Ilala at the centre and Temeke to the
south. The municipalities are local governments with elected
councillors and an executive branch. An overarching body, the Dar es Salaam City Council (DCC), is in charge
of coordinating the activities of the municipalities and overall city planning. All these local bodies are
overseen by the Prime Minister’s Office – Regional and Local Government (PMO-RALG).
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Figure 7.
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Map of Dar es Salaam’s Road Network
Source: TANROADS
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The port of Dar es Salaam is Tanzania’s main trade gateway and handles 90% of all sea-borne importsexports of goods in the country. Total volume of trade at the port is currently about 9 million tons per
annum, of which 50% are destined for Dar es Salaam and the rest to upcountry destinations and to
neighbouring countries. This generates a large amount of road freight traffic which in part needs to share
roads with the public transport system of the city.
Dar es Salaam is also the origin of the two rail systems in Tanzania, the Central Railway to Mwanza and
Kigoma – a metre-gauge railway compatible with the eastern African railway system – and the TanzaniaZambia Railway Authority (TAZARA) line – with a gauge of 1.06 metres compatible with the southern
African railways. The railways currently carry less than 5% of the upcountry freight traffic. Efforts are
underway to improve their performance and market share.
Economic growth in Dar es Salaam is estimated at 10% per annum, above the country average. The growth
of motorisation follows the overall economic growth. Currently it is estimated that there are about 100,000
passenger cars in use in Dar es Salaam and an equal amount of motorcycles. The number of passenger cars is
assumed to grow to about 200,000 by 2020 and 500,000 by 2030.
The growth of private motorised vehicle ownership, while appreciated as a sign of increased wealth, is
leading to rapidly worsening congestion. This is now threatening the viability of the provision of public
transport in the city.
3.3 Current public transport system
3.3.1 Daladalas
Public transport in Dar es Salaam is essentially provided by about 5,200 privately-owned so-called daladala
buses. Ownership is widely dispersed with about 3,000 owners and an average of two daladalas per owner.
Daladalas in their great majority are mid-sized buses with a capacity of about 40 passengers (so-called
Coasters).
Since 2006 only vehicles of more than 25 seats capacity are permitted to service downtown areas. This
regulation led to a rapid transformation and repositioning of the daladala product so that the low-grade
minibus prevalent in other African cities are generally absent in central Dar es Salaam, illustrating the
capacity of the daladala industry to adapt and invest in higher-order vehicles.
Figure 8.
Daladala in Dar es Salaam
Source: _ncg (Creative Commons License)
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Daladalas are regulated by the Surface and Marine Transport Regulatory Authority (SUMATRA) under the
Ministry of Transport. SUMATRA issues an annual licence to each daladala to ply on a particular route.
Origin, destination and fares are clearly marked on each bus.
The daladala system is currently estimated to provide about 3 million trips each day during workdays.
Daladalas ply on 360 routes (boarding and de-boarding is on demand) and users can theoretically get from
one end of the town to any other without changing buses. Daladalas provide transport at extremely low
tariffs: cost for a trip up to 10 kilometres is TZS 400 (half for students), which translates to about USD 2.5
cents per passenger-kilometre. For longer trips and during rush hours fares go up to TZS 1,000.
Figure 9.
Map of Main Daladala Routes
Source: DART Agency
3.3.2 Commuter trains
In 2012 the government introduced a commuter service on the two railways within the city limits. Two trains
are operated in the morning and evening peak hours, carrying a total of about 5,000 passengers per work
day. The introduction of further commuter train lines, in particular to connect neighbouring cities, is also
being considered.
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Figure 10.
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Dar es Salaam Commuter Train
Source: www.skyskrapercity.com
3.3.3 Ferry
A passenger and car ferry connects the city to the fast-developing Kigamboni suburb in the south. It is used
by thousands of passengers daily who will be able to connect with the DART system at the Kivukoni
terminal. TEMESA (Tanzania Electrical, Mechanical and Services Agency) plans to introduce more ferries
which will end at Kigamboni.
Figure 11.
Kivukoni – Kigamboni Ferry
Source: IPP Media
3.3.4 Bodabodas
These are passenger motorcycles for hire. They are commonly used for short distances in areas not covered
by daladalas.
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Figure 12.
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Bodabodas
Source: www.24tanzania.com
3.3.5 Bajajis
Completely absent of Dar es Salaam before 2010, the three-wheeled bajaji is now integral part of the city’s
transportation system. Directly imported from India, it represents a safer and more comfortable alternative
to bodabodas and its use is spreading at rapid pace.
Figure 13.
Bajaji in Dar es Salaam
Source: www.dailyhabari.wordpress.com
3.3.6 Challenges
For all its merits the viability of the current public transport system is under threat due to rapidly increasing
congestion in the city of Dar es Salaam. There is a lack of transport during rush hours (because providers are
stuck in traffic) and a surplus during non-rush hours. Daladalas themselves contribute to the congestion with
their tendency to stop on traffic lanes to let passengers board or leave and with their large numbers and
proliferation on the public transport network.
Figure 14.
Traffic jam in Dar es Salaam
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Source: www.24tanzania.com
The DART system is therefore being introduced with the aim and ambition to provide a cleaner, more
modern and more efficient public transport service to the residents of Dar es Salaam. The DART system will
ultimately become the core public transport provider. Other means of public transport, such as bajajis,
bodabodas and taxis will assist as distributors to locations near stations. Daladalas will keep operating in the
corridors where the DART system will expand to in the future. Suitable interface arrangements with the
daladala system have been established for Phase 1.
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4 DART system
4.1 Overview
The DART system is a high-capacity Bus Rapid Transit (BRT) scheme with closed stations and physically
segregated lanes. While the DART system aims to ultimately provide a comprehensive public transport
solution for the whole of Dar es Salaam, it will be developed in six phases as follows.
Figure 15.
DART System Map
Source: DART Agency
Currently Phase 1 of the DART system infrastructure is being implemented, which consists of:
 20.9 kilometres of trunk lanes;
 57.9 km of feeder routes;
 5 terminals;
 27 stations;
 7 feeder stations;
 3 connector stations with the existing public transport system;
 2 bus depots.
The Phase 1 infrastructure is being implemented by TANROADS through private contractors (STRABAG for
the main part) and consultants (SMEC for the main part). Financing is being provided through a credit of the
World Bank to the Government of Tanzania. Currently (May 2014) 60% of the overall works have been
implemented. Completion of all works is planned for end 2015. However the main trunk corridor on
Morogoro Road from Kimara to Kivukoni (15.4 km) as well as the Jangwani depot will be ready for use by end
2014. On this main section it is planned to commence operations in 2015.
Phase 1 operations will offer 7 trunk services using about 145 18-metre articulated buses with a capacity of
150 passengers and 11 feeder services using about 90 12-metre buses with a capacity of 80 passengers. The
dedicated trunk lanes will be exclusive to trunk buses and competing daladala services will be phased out
along both trunk and feeder routes as Phase 1 becomes operational, except for the services along the
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Kawawa Road and the Sam Nujoma Road continuing south (for which no alternative will be provided by
DART Phase 1 services).
Articulated buses with a 150-passenger capacity will provide a combination of stopping and express services
on the trunk routes. Most stations have passing lanes in order to allow express buses to overtake stopping
buses. Passengers will board trunk buses on the right-hand side from stations located in the median of the
roadway. Station platforms are raised to allow for level boarding 0.9 metre above street level.
Feeder bus vehicles will take passengers at and to feeder stops and stations, trunk terminals as well as
various special feeder stations near trunk stations. Additionally there will be transfer stations for the transfer
of daladala passengers to the DART system (only needed until Phases 2 and 3 are built). Traditional means of
transport including daladalas, bajajis, bodabodas, bicycles and walking will assist to bring passengers to the
system and efforts will be made to facilitate transfers as much as possible.
Table 1.
Peak headway (min)
Commercial speed (km/hr)
Hours of operation
Total daily service kilometres
Phase 1 Operational Highlights
Trunk
1.5 to 6.0
23
5:00 to 23:00
45,000
Feeder
1.7 to 15.0
15
5:00 to 23:00
20,000
Source: DART Agency
Passengers will pay a flat fare depending on whether they make use of trunk services, feeder services or a
combination of both. They will enter stations and feeder buses with Contactless Smart Cards which will be
sold and can be recharged at stations and terminals. The trunk lines will be closed, meaning that passengers
will need to use a Contactless Smart Card to enter and exit stations through turnstiles.
4.2 Demand
A comprehensive transportation model was developed under the EMME2 software to assess demand for
public transport in the city and estimate potential ridership for Phase 1 of the DART system. The model,
which will be made available to bidders, shows very strong demand and estimated ridership as the DART
system will be virtually the only reliable form of public transport available along Morogoro Road, which
constitutes the city’s main arterial road. In that sense the Phase 1 corridor really represents the heart of the
city’s future public transportation system.
The estimated maximal initial demand during the morning peak hour at Jangwani is 17,000 passengers per
hour. There will be about 410,000 passengers per day on the system for a total annual ridership of about 130
million trips. This will position DART as one of the largest BRT systems in the world right from inception.
The transportation model was prepared in a very conservative fashion in the sense that it does not take into
account ridership growth, which is potentially very significant in view of Dar es Salaam’s demographic
dynamics and the location of the Phase 1 corridor right next to several fast-growing settlements in the west
of the city. Additionally a considerable upside in ridership and fare revenues on the Phase 1 corridor is
anticipated as soon as the expansion of the DART system into Phase 2 and further is operational.
4.3 Infrastructure
4.3.1 Stations
4.3.1.1
Overview
Stations have been classified in three categories, depending on functionality and utility offered:
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
Trunk stations: these are stations on the trunk route. In Phase 1 there are 25 trunk stations, 22 of
them provided with overtaking lanes. They are elevated to 90 centimetres to allow level entrance
into trunk buses. They are normally accessed via level pedestrian crossings (slightly elevated to
ensure pedestrian safety). From the pedestrian crossing there is a flat ramp, allowing easy
wheelchair access, followed by turnstiles where the smart card is applied to enter the station.
Stations are normally spaced 500 meters apart. There are 4 types of trunk stations (A, B, C and D),
depending on the assumed passenger demand.

Feeder stations: 7 feeder stations allow passengers to transfer from one or more feeder routes to
the trunk lines.

Terminals: 5 terminals are the start and end stations for all trunk services and allow transfers
between feeder services as well as between different transportation means such as regional buses,
private vehicles, bicycles and many more.
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Table 2.
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Phase 1 Stations
Road Name
Station Type
Feeder
Connections
No. of BRT Lanes
Ki ma ra Termi na l
Morogoro
Termi na l
FR004
3 trunk + 3 feeder
Korogwe
Morogoro
B
2 + 2 mi xed
Bucha
Morogoro
B
2 + 2 mi xed
Ba ruti
Morogoro
B
2 + 2 mi xed
Kona
Morogoro
B
2 + 2 mi xed
Ki bo
Morogoro
B
2 + 2 mi xed
Ubungo Ma ji
Morogoro
C
4
Ubungo Termi na l
Morogoro
Termi na l
FR005/6
6
Sheki l a ngo
Morogoro
C
FR007/8
4
Ura fi ki
Morogoro
C
FR010
4
Ma nzes e Ti p Top
Morogoro
C
4
Ma nzes e
Morogoro
C
4
Ma nzes e Argenti na
Morogoro
C
4
Ka gera
Morogoro
C
4
Mwembe Cha i
Morogoro
C
4
Us a l a ma
Morogoro
C
4
Ma gomeni Ma pi pa
Morogoro
C
Ja ngwa ni
Morogoro
C
Fi re Sta ti on
Morogoro
D
DIT
Morogoro
C
2
Proposed Name
Kimara – Kivukoni 15.4 km
Ki s utu
FR010
4
4
FR011
4
Morogoro
A
2
Ci ty Counci l
Za na ki Street
B
2
Pos ta ya Za ma ni
Ki vukoni Front
C
2
Ki vukoni Termi na l
Ki vukoni Front
Termi na l
Ferry
6
Kawawa North Branch 3.8 km
Ma gomeni Hos pi ta l
Ka wa wa
C
Ka ni s a ni
Ka wa wa
B
Mkwa juni
Ka wa wa
C
Mwa na mboka
Ka wa wa
C
Ki nondoni B
Ka wa wa
C
Morocco Termi na l
Ka wa wa
Termi na l
4
FR008
4
4
FR009
4
4
FR001/2/3
6
Kariakoo Branch 1.7 km
Ms i mba zi Pol i ce
Ms i mba zi Street
B+B
Ka ri a koo Termi na l
Ms i mba zi Street
Termi na l
4
Da l a da l a
6
Source: DART Agency
The trunk stations and terminals will feature the following:

Automated Fare Collection System:
o Ticket offices selling Contactless Smart Cards, stored value and other card services;
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o Turnstiles to control entry to the stations (paid passage from the unpaid to the paid area);
o Turnstiles to control exit from the stations (free passage from the paid to the unpaid area);
Equipment to mitigate the impact of short (<4 hours) power failures;
Passenger information displays providing the following information:
o Name/number of the next service, for each boarding area;
o Departure time;
o Stations served;
o Incident, event, disruption information;
o Advance notice of any service changes or temporary station closures;
Signage to control passenger flows;
Signage to provide customer education and information;
A public announcement system;
CCTV cameras for station security and revenue protection.
4.3.1.2
Trunk stations
Based on demand conditions, the design of trunk stations has to take into consideration the space
requirements for adequate passenger flow and permanence at station. Based on the demand analysis 3
types of trunk stations have been developed to address passenger flow demands:
 Type A trunk stations, consisting of one module with only one entrance (1 in Phase 1);
 Type B trunk stations, consisting of one module with two entrances at either end (9 in Phase 1);
 Type C trunk stations, consisting of two modules put together with two entrances at either end (16
in Phase 1);
 Type D trunk stations, consisting of three modules put together with two entrances at either end (1
in Phase 1).
Figure 16.
Trunk Station Type A
Figure 17.
Trunk Station Type B
Figure 18.
Trunk Station Type C
Figure 19.
Trunk Station Type D
Source: DART Agency
Source: DART Agency
Source: DART Agency
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Source: DART Agency
4.3.1.3
Feeder stations
In Phase 1 there are 7 feeder transfer stations where feeder services intersect and integrate with trunk
services.
One example of this kind of stations is Shekilango.
Figure 20.
Shekilango Station Layout
Source: DART Agency
4.3.1.4
Terminal stations
There are 5 terminal stations in Phase 1. Of these, 4 will be located at the ends of the corridor: Kivukoni
Front, Morogoro Road at Kimara, Kawawa North Road at Morocco and Kariakoo on Msimbazi Street. The
fifth terminal station, which will be the largest, will be located at Ubungo in an intermediate segment of
Morogoro Road.
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Figure 21.
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Kivukoni Terminal Layout
A
B
Source: DART Agency
4.3.2 Depots
The Service Provider will be awarded two depots to park its fleet, maintain its buses and manage its
operations. The Jangwani bus depot will have capacity for 210 articulated buses. The Ubungo bus depot,
which will be made available at a later stage, will be located on the north area of the current upcountry
terminal and will have capacity for 120 articulated buses.
On the depots the following will be provided to the Service Provider by the DART Agency:
 Land;
 Paved parking area;
 Roofed bus maintenance area;
 Administration building;
 Water and electricity connections.
However everything else required to run the depots shall be provided by the Service Provider.
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Figure 22.
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Jangwani Bus Depot Layout
Source: DART Agency
4.3.3 Work progress status
The DART system infrastructure is being implemented by the Tanzania National Roads Agency
(TANROADS) through private contractors (STRABAG for the main part) and consultants (SMEC for the main
part). Financing is being provided through a credit of the World Bank (WB) to the Government of Tanzania
(GoT). Currently (May 2014) 60% of the overall works have been implemented. Completion of all works is
planned for 2015. However the main trunk corridor on Morogoro Road from Kimara to Kivukoni (15.4 km) as
well as the Jangwani depot will be ready for use by end 2014. On this main section it is planned to commence
operations in 2015.
4.4 Bus services
Phase 1 bus operations will be provided by a Service Provider providing both trunk and feeder services. The
Service Provider will be a private company registered in Tanzania with ownership possibly shared between
bidding consortium members. The contract will be awarded for a period of 12 years following a public tender
process under terms and conditions established by the DART Agency in accordance with the regulations
governing public procurement and PPPs.
The Service Provider will be responsible for the financing and acquisition of vehicles as well as for the
recruitment of drivers, technical maintenance personnel and management and administrative staff. The
operational scheme comprises trunk route services and feeder services.
4.4.1 Trunk services
Trunk services will be rendered by 18-meter articulated buses with 150 passenger capacity and advanced
technical features such as pneumatic suspension, automatic gearbox, forced ventilation and cutting-edge
technology motors. Trunk buses will also be fitted with an ITS system consisting of at least a GPS
transponder, wireless communication and a driver’s console for communication with the Control Centre.
Technical output specifications of the trunk buses will be provided as part of the bidding documentation
package.
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Figure 23.
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Trunk Bus Layout (Indicative)
Source: DART
In Phase 1 there are a total of 7 trunk services. On the trunk corridors, at most stations, the physical design
includes passing/overtaking lanes. This expands the system’s capacity by allowing both stopping and express
services:

Stopping services: the bus stops at every single station along its path;

Express services: the bus stops only at determined groups of stations defined by origin and
destination concentration criteria, missing some stations on their path, therefore increasing
operational speeds.
All services were designed based on a maximum frequency during the morning peak hour of 40 buses/hour
(1.5 minute headway) and a 10 buses/hour minimum frequency (6.0 minutes headway). The operational
speed considered for trunk services was set at 23 kilometre per hour. All of these routes could be changed by
the DART Agency during operations to improve service to the users or to adapt to the city’s demographics.
Table 3.
Phase 1 Trunk Services
TRUNK
Code Type of Service
From
To
Length
(km)
TR001 Stopping
Ubungo
Kariakoo
9
TR002 Express
Kimara
Kariakoo
14
TR003 Stopping
Kimara
Kivukoni
15
TR004 Stopping
Morocco
Kariakoo
7
TR005 Stopping
Morocco
Ubungo
9
TR006 Stopping
Morocco
Kivukoni
9
TR007 Express
Ubungo
Kivukoni
11
Source: DART Agency
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Figure 24.
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Phase 1 Trunk Services Map
Source: DART Agency
4.4.2 Feeder services
Feeder services will be rendered by 12-metre buses with a capacity of 80 passengers. Each feeder bus will
employ a driver. Feeder buses will be fitted with an ITS system consisting of at least a GPS transponder,
wireless communication and a driver’s console for communication with the Control Centre. Technical output
specifications of the feeder buses will be provided as part of the bidding documentation package.
Figure 25.
Feeder Bus Layout (Indicative)
Source: DART Agency
In Phase 1 there are a total of 11 feeder services covering 57.9 km of additional routes mainly north of the
trunk corridor.
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Table 4.
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Phase 1 Feeder Services
FEEDER
Code Type of Service
From
Length
To
(km)
FR001
12m80pax
Morocco
Masaki
5.2
FR002
12m80pax
Morocco
Kawe
7.8
FR003
12m80pax
Morocco
Mwenge
4.3
FR004
12m80pax
Kimara
Mbezi
7.0
FR005
12m80pax
Ubungo
Mwenge
4.2
FR006
12m80pax
Ubungo
Chuo Kikuu
FR007
12m80pax
Shekilango
Mwenge
5.0N/4.7S
FR008
12m80pax
Shekilango
Kanisani
6.4
FR009
12m80pax
Mwanamboka
Makumbusho 3.1E/3.8W
FR010
12m80pax
Magomeni Mapipa Urafiki
FR011
12m80pax
Fire
Muhimbili
6.6
7.1
1.3N/1.1S
Total
57.9
Source: DART Agency
Figure 26.
Phase 1 Feeder Services Map
Source: DART Agency
4.5 Automated Fare Collection System (AFCS)
4.5.1 Overview
The private sector will be responsible for the delivery, design, building, installation, financing, operation and
maintenance of a complete Automated Fare Collection System (AFCS). The private sector will be allowed to
use either a dedicated transport solution or a generic contactless payment solution.
The AFCS functions and services to be delivered to the DART Agency will include:
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Supplying, installing and maintaining the AFCS equipment on stations and terminals;
Establishing and enforcing day-to-day management of the AFCS;
Ensuring that there are sufficient fare media sales and top-up facilities to support the ridership in
the DART system;
Providing fare collection related customer services on stations, terminals as well as through online
channels;
Striving to reduce dwell time in stations by implementing a simple, effective and efficient AFCS;
Collecting cash resulting from stored value sales for deposit with the Fund Manager;
Ensuring revenue protection;
Taking a comprehensive insurance cover for the daily cash collections prior to submission to the
Fund Manager;
Providing timely information on category of passengers, daily fares collected and any other
relevant commuter information as requested by the DART Agency for decision making and
planning purposes;
Providing accurate data to the DART Agency and the Fund Manager on daily fares collection;
Facilitating operational and financial audit as and when required by the DART Agency.
Contactless Smart Cards will offer smooth boarding and will be the only accepted method of payment.
However the use of Contactless Smart Cards does not have to be limited to the DART system. In other large
AFCS schemes such as Hong Kong, the Netherlands, London, Singapore and Taiwan, transport Contactless
Smart Cards are used for a diverse range of other applications, which include small payments at retailers,
access control, identity control and loyalty programmes among others. It will be up to the private sector to
select and capitalise on other possible uses of the cards.
Actual fare collection operations will be conducted under the responsibility of the Service Provider by
cashiers at stations and terminals as well as automated contactless equipment. The equipment to be
procured for the AFCS includes:








Contactless Smart Cards (not necessarily transport-specific);
Point of Sales (POS) (not necessarily transport-specific);
Card initialisation devices (not necessarily transport-specific);
Turnstiles in stations and terminals;
Card readers in stations, terminals and feeder buses;
Data servers;
Software for POS and equipment;
Mobile and/or optical fibre communication equipment.
AFCS technical specifications will be made available to all subsequent Service Providers of the DART system
and other Contactless Smart Card providers, who will be offered the opportunity to source equipment from
the Phase 1 Service Provider or alternatively select any third party equipment, as long as it complies with the
technical specifications provided.
4.5.2 Acquiring a smart card
Any passenger intending to make use of the DART services must be in possession of a Contactless Smart
Card with sufficient value for the trip. CSCs can be delivered via ticket offices at stations and retail outlets
outside stations. The passenger will pay a nominal price of up to TZS 500 (to be decided by the Service
Provider) to obtain the card and can then have it loaded with stored value. CSC and stored value can be
bought with cash or using an M-money provider such as Tigo Pesa, M-Pesa, Airtel Money, Ezy Pesa or Pesa
Fasta. M-money is indeed a an increasingly popular mechanism for payment in Tanzania.
Passengers can optionally apply for registration of their cards. Stored value on registered cards is then
protected against theft or loss.
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Students will be given the opportunity to load a distinctive product on the CSC by showing a valid student
ID. The CSC will then be linked to the student ID and the fares for trips and journeys with this CSC will be
discounted.
The private Service Provider will be required to market the card and educate passengers to use the system.
4.5.3 Using trunk services
Trunk stations and terminals will consist of a paid area and an unpaid area. Trunk buses will stop in the paid
area. The paid area and the unpaid area are separated by a gate line, i.e. a series of turnstiles only granting
passage from unpaid to paid area upon payment of the fare. Passengers approaching the gate line will
present a card to the reader on the turnstile. The appropriate fare will be deducted from the stored value on
the CSC and the turnstile will let the passenger pass.
4.5.4 Using feeder services
On feeder buses, passengers will board at the front of the bus. They will present their CSC to a reader and
the appropriate fare will be deducted from the stored value on the CSC.
4.5.5 Exiting the system after use of the bus services
Passage through a gate line from paid to unpaid area and exiting a feeder bus requires no further action from
the passenger.
4.5.6 Fares
Passengers will pay a flat fare depending on whether they make use of trunk services, feeder services or a
combination of both. Discounted integrated fares will be charged for combined trips, provided each leg of
the trip starts within 90 minutes from the start of the previous leg of the trip.
Table 5.
Fare Schedule
Single trip feeder
TZS 500
Single trip trunk
TZS 700
Combined trip feeder + trunk or trunk + feeder
TZS 800
Combined trip feeder + trunk + feeder
TZS 900
Student discount
50%
Source: DART Agency
Passengers will not be eligible for an integrated fare when:
 More than 90 minutes have passed since the latest validation of the CSC;
 A transfer between two feeder buses or two trunk routes is detected.
4.6 Control Centre
4.6.1 Overview
The Control Centre will serve as a central control point for the operation of the DART system. Following a
capacity ramp-up period of 2 years during which the private Service Provider will be responsible for the
operation of the system and the training of DART Agency staff, the Control Centre will be operated by the
DART Agency. The Control Centre will aggregate all information from the system, analyse it and optimise
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the operation of the BRT in the light of changing circumstances. The information will originate from the
following systems:




AFCS, with transaction and revenue information;
Intelligent Transportation Systems (ITS) on board the trunk and feeder buses, with location
information;
CCTV cameras on the stations and terminals, with video feeds;
Other sources such as the DART Agency, the traffic police department and TANROADS.
The main functions to be carried out by the Control Centre are as follows:



Scheduling the services every week, day and hour for each trunk and feeder service;
Controlling the system to ensure quality of the service, including:
o Complying with schedules;
o Communicating with drivers and letting them know if they need to slow down or speed
up;
o Addressing unforeseeable operational problems such as bus breakdowns, traffic jams,
accidents, etc.;
Reporting on operations.
The Control Centre will be located in the Jangwani depot during the capacity ramp-up period of 2 years and
then transferred to another location to be determined once the DART Agency takes over. The equipment to
be procured by the Service Provider for the Control Centre includes all necessary communication and
physical equipment (data transmission, GPS information and radio service) as well as the scheduling and
control software and technologies, which must be fully integrated with the AFCS and the onboard ITS
equipment. Technical specifications for the ITS and driver’s console of trunk and feeder buses will be made
available to all subsequent Service Providers of the DART system, who will be offered the opportunity to
source this equipment from the Phase 1 Service Provider or alternatively select any third party equipment, as
long as it complies with the technical specifications provided.
4.6.2 Scheduling function
Control begins with determining the schedule. This schedule must be shared with the bus Service Provider,
so that they can perform dispatch management to optimally allocate buses, drivers and conductors. The
latter function (dispatch management) is not a Control Centre function.
The Control Centre will schedule trunk and feeder services and produce monthly, weekly and daily schedules
for the Service Provider (longer-term schedules will help the Service Provider prepare maintenance shifts for
the buses). To schedule the services, the two main inputs will be the size of the operational fleet available
and the total and per station numbers of passengers.
The Service Provider will then send detailed schedules with specified buses and drivers back to the Control
Centre for approval. Once approval is granted, the detailed information of the service must be saved on the
on-board computer of each trunk and feeder bus. Station stops and times will then appear on the driver’s
display.
4.6.3 Controlling function
The controlling function will mostly rely on GPS transponders sending information to the Control Centre via
wireless communication. These transponders will record arrival times at stations and terminals as well as the
location of each bus and periodically during the day send this information to the Control Centre for
verification against the assigned schedule. The distance travelled will be determined by the Control Centre
and checked against odometer readings.
Bus drivers will proceed to drive the scheduled service displayed on the driver’s console and will be charged
with maintaining the quality of the service, complying with the schedule and adjusting the speed. However
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this will also be monitored by the Control Centre which can then request the driver to slow down or speed
up. While on the road bus drivers will have direct contact with the Control Centre, from which they will take
their instructions. This communication can be through radio or using cell phone technology in the bus with
pre-configured panel activation buttons.
The Control Centre will be responsible for comparing planned versus realised schedules, both in terms of
time and kilometres driven. Those numbers then get shared with the financial planning team.
Figure 27.
Control System
Source: DART Agency
4.6.4 Reporting function
The Control Centre must be capable to produce comprehensive reports for service quality management,
financial reconciliation, Service Provider payment and financial planning. Other than the detailed reporting
requirements to be listed in the bidding documentation, the reporting system must be sufficiently flexible to
mine the data for new purposes.
4.7 Fund management
The transparent and fair distribution of revenues is fundamental to the DART system and in operating a
network of integrated transit providers. To ensure confidence of the private sector, as well as the DART
Agency, in the distribution of revenues, an independent Fund Manager will act as a custodian of the
revenues. The Fund Manager will receive fare revenues every day from operations and then pay the Service
Provider according to fixed rules and regulations as stipulated in the contracts.
4.8 Institutional setup
4.8.1 DART Agency
The DART Agency is a public agency. It oversees the DART system and ensures quality control. It is an
executive agency created by the President’s Office – Public Service Management (PO-PSM) under the
Executive Agency Programme as stipulated in the Executive Agency Act No 30 of 1977. The DART Agency
reports to Permanent Secretary – Prime Minister’s Office – Regional Administration and Local Government
(PMO-RALG). As an executive agency, the DART Agency is a semi-autonomous legal entity that may enter
into contracts in its own name. It can also borrow money, as well as acquire, hold or dispose movable and
immovable property, pending approval of the Permanent Secretary.
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The Permanent Secretary (PMO-RALG) is responsible for the strategic management of the DART Agency,
and for that purpose may give directions to the Chief Executive of the DART Agency “but with due regard to
the need to uphold the Agency’s autonomy in the day-to-day management of its affairs”. The Chief
Executive of the DART Agency is appointed by the Minister on the advice of the Civil Service Commission.
The DART Agency currently has 29 staff and operates on an annual operating budget of about TZS 1 billion.
Those figures are expected to double once the system is in operation, with a planned full staffing of 66
(including 23 staff at the Control Centre) and an annual budget of TZS 2 billion.
Figure 28.
DART Agency Organisational Chart
DART Coordination
DART Mission
Minister
Steering Committee
Ministerial Advisory Board
Technical
Committee
To provide quality, accessible and
affordable mass transport system
and improve urban mobility for the
residents of Dar es Salaam
Permanent Secretary
Coordination
Committee
Chief Executive
Internal Audit
Information & Communication Technology
4 Units
Legal Services
Finance and Business
Development Division
Finance and Accounts
 Fa re Collection
 Revenue Ma nagement
 Contra ct Ma nagement
Business Development
 Cus tomer Support
 Ma rketing
 Advertisement, other
bus inesses
Operations and
Infrastructure Management
Operations
 Bus Pl anning/Regulations
 Control Centre
 AFCS/ITS
Infrastructure Management
 Stations / Terminals
 Sa fety /Security
 Tra ffi c Ma nagement
 Res ettlement
Procurement Management
Transportation Planning
Transport Planning
 Interactions wi th other urban
pl a nning entities
System Planning and Design
 Future Phases
Administration and Human
Resource
4 Divisions
Administration and Human
Resource
8 Sections
Public Relations and
Communications
Source: DART Agency
Following are the mandated functions of the DART Agency:
 Conduct the bidding process for tendering the operations of the DART system to the private sector;
 Enter into contracts with Service Providers and oversee these contracts;
 Develop and maintain the DART system’s image and branding;
 Market and advertise the DART system;
 Ensure the DART system balances the need to be self-financing and profitable for the Service
Provider with the need to remain affordable to the citizens of Dar es Salaam, while still providing a
good quality of service, by:
o Planning the number of kilometres, routes, frequencies and bus schedules;
o Calculating the user fares and presenting studies about the user fares to the Ministerial
Advisory Board (MAB) and the private Service Provider;
o Providing information to the Fund Manager to determine amounts payable to the private
Service Provider for their services;
o Managing special events or emergencies that may cause disruption to services or require
changes to the bus schedule/operations or the disbursements of payments;
 Facilitate the resolution of any disputes that may arise between the DART system’s actors;
 Report to the Ministerial Advisory Board on all matters regarding the administration and
management of the DART system;
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
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Implement all policies and regulations as directed by the Ministerial Advisory Board;
Make recommendations for the enactment of necessary legislation to the Ministerial Advisory
Board to enhance proper management of the DART system;
Collaborate with SUMATRA and TANROADS on all matters relating to the services and
infrastructure of the DART system;
Make recommendations for the future design and planning of the DART system in the city of Dar es
Salaam for the adoption by the Ministerial Advisory Board;
Collaborate with all the key stakeholders on the DART system, including the government ministries
and the private sector.
4.8.2 TANROADS
TANROADS is the roads authority under the Ministry of Works (MoW) responsible for the management of
the national road network. Maintenance funding is providing by the Road Fund, which collects revenues
from the fuel levy, transit fees and overloading fees. In FY2012/2103 the Road Fund Board (RFB) disbursed
TZS 527 billion in total, including TZS 320 billion to TANROADS.
The DART trunk corridor roads are national roads and were thus built under the responsibility of
TANROADS. TANROADS has established a special BRT unit responsible for the implementation of the
DART infrastructure works.
After completion of the construction, the intention is to have TANROADS concede the trunk corridors to the
DART Agency so that no separate contractual agreement for the Right of Way (RoW) will be required
between the private Service Provider and TANROADS. The DART Agency is in the process of applying for
road agency status, which will enable it to take over maintenance of the bus ways, mixed traffic lanes as well
as the bicycle and pedestrian ways through a performance-based long-term contract (12 years) funded from
the proceeds of the Road Fund.
4.8.3 SUMATRA
SUMATRA was created in 2005 under the Ministry of Transport. It is responsible for issuing transport licenses
in all surface and marine transportation subsectors, including for public transport in the city of Dar es
Salaam, as well as for setting fares and tariffs.
The role of SUMATRA will be instrumental in driving the daladala transition policy. It will do so in close
collaboration with the DART Agency by gradually phasing out – by way of non-renewal – the licenses for
daladala routes potentially competing with the DART system and allocating other routes in fast-growing
areas of the city to affected daladala operators.
4.8.4 Traffic police
The traffic police is in charge of traffic regulation and law enforcement on the roads of Dar es Salaam. At the
moment it operates a small traffic control centre from the traffic police headquarters, communicating with
traffic officers throughout the city via radio.
The traffic police will have the critical role of ensuring fluidity of DART services by:




Handling traffic at the few intersections between dedicated trunk lanes and mixed traffic lanes;
Enforcing road signs and traffic lights;
Maintaining exclusivity of the bus ways for trunk services;
Managing security and crime (in cooperation with the Service Provider).
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5 Implementation strategy
The DART Agency is conscious of the fact that, in view of the delays required to procure and commission a
complete fleet of trunk and feeder buses, phase out daladalas from the routes to be covered by the new
system and change commuters’ habits, the transition from the current transport system to the DART system
will not be effective from day 1 but will have to be implemented in stages so as to ensure a continuity of
public transport services for users.
The DART Agency has therefore developed a staged implementation approach as described below. During
the tender process private sector bidders will however be invited to make suggestions on how to fast-track
and improve this implementation strategy.
5.1 Operational ramp-up
5.1.1 Interim stage
In view of the anticipated completion date of the main trunk corridor infrastructure and the urgent need for
high-capacity transportation on the Morogoro Road, an interim stage was designed to fast-track the
implementation of Phase 1. At this point this interim stage has not been fully confirmed.
Should it materialise, an interim fleet of 20 trunk buses would be purchased by the DART Agency. This
interim fleet would then be transferred to the private Service Provider free of charge so that it can use it to
train its drivers, provide basic initial services and create awareness of the upcoming service among
commuters.
During the interim stage a basic service would be provided on the Kimara – Kivukoni section of the trunk
corridor. This basic service would not be able to absorb the demand at peak hour and therefore daladalas
would still be allowed to operate parallelly to the DART system.
No feeder services would be provided at this stage.
5.1.2 Stage A
For Stage A an operational fleet of about 145 trunk buses and about 25 feeder buses will be procured by the
private Service Provider. This fleet should be sufficient to provide a full service on the trunk corridor as well
as on the FR004 (Mbezi – Kimara) and FR011 (Fire – Muhimbili) feeder routes.
During Stage A daladalas will not be allowed to operate in parallel to the above routes anymore.
5.1.3 Stage B
For Stage B an additional estimated fleet of about 60 feeder buses will be procured by the private Service
Provider. This fleet should be sufficient to provide a full service on the entire DART Phase 1 trunk and feeder
network except for the FR003 (Morocco – Mwenge) and FR008 (Shekilango – Kanisani) feeder routes, on
which construction works will still be ongoing.
During Stage B daladalas will not be allowed to operate in parallel to the DART Phase 1 network anymore,
except for the above two routes (for which no service will be provided yet) and for the services along the
Kawawa Road and the Sam Nujoma Road continuing south.
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5.1.4 Stage C
For Stage C an additional estimated fleet of about 5 feeder buses will be procured by the private Service
Provider. This fleet should be sufficient to provide a full service on the entire DART Phase 1 trunk and feeder
network.
During Stage C daladalas will not be allowed to operate in parallel to the entire DART Phase 1 network
anymore, except for the services along the Kawawa Road and the Sam Nujoma Road continuing south.
5.2 Daladala transition policy
5.2.1 Awareness and support
Daladalas have been providing public transport solutions to the residents of Dar es Salaam for the last 30
years. They therefore represent an important group of stakeholders in the project and have been involved in
a number of rounds of discussions and consultations with government. They are well aware of the existence
of the DART project and, acknowledging the need for a modern transport system in Dar es Salaam and the
benefit it will bring to both commuters and operators in terms of reduced congestion on the road, they are
generally supportive of the DART initiative.
5.2.2 Reallocation of daladala routes
The DART system was based on the demand study of the corridors and feeder areas and also addressed
existing passenger transport provided by daladala services. In order to guarantee the expected demand,
avoid duplication of services, ensure the competitiveness of the DART system and reassigning resources to
fast-growing areas which are in need of better services, the existing passenger transport services will need to
be prohibited from operating the same service, with the same origins and destinations along the same
routes.
To this end 43 of the current daladala routes operating in parallel to the future DART system will be
cancelled, namely all of the daladala routes on Morogoro Road as well as the routes taking Kawawa North
Road and turning into the Morogoro corridor (daladalas continuing south, away from the BRT corridor, will
still be permitted to operate as the Phase 1 of the DART system will not be able to provide an alternative
transport solution yet).
The phasing out of daladalas, which to some extent is already taking place, will be done by way of nonrenewal of SUMATRA licenses along those routes, which are issued for a maximum of 12 months. Upon
expiry of their license affected operators will be offered different daladala routes to operate. While the fast
population growth and rapid spreading of suburban neighbourhoods will create sufficient need to absorb
most of this freed capacity, it is believed that some daladala owners may then decide to withdraw from the
public transport business altogether and invest in other sectors.
5.2.3 Reorganisation of the industry
Unlike in other cities around the world, informal public transport operators of Dar es Salaam are only weakly
organised. There are two daladala owners’ associations, namely the Dar es Salaam Commuter Bus Owners’
Association (DARCOBOA) and the Association of Transporters in Dar es Salaam (UWADAR). The industry
remains however very fragmented.
To facilitate the transition to a modern public transport system, SUMATRA and DART are currently
providing support to daladala operators to help them structure themselves into formal business entities.
SUMATRA is strongly encouraging daladala owners operating in some of the corridors to form route
associations and has actually declared that it will no longer licence individual daladalas after a set date.
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This industry restructuring and reorganisation process is also meant to give daladala owners a chance to
associate with local and international parties interested in bidding for the DART system and thus participate
in the tender process. While it is widely understood by current daladala owners that they will not enjoy
preferential treatment in the tender process, the inclusion of parties with local experience within bidding
consortia will be encouraged following the possibilities offered by the PPP and procurement legislation and
regulations of Tanzania.
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6 Contractual structure
6.1 Overview
Recognising the need for a staged implementation approach, the DART Agency has designed a flexible
contractual structure allowing for close adaptation of operational services to progress of the construction
works on the ground as well as to the level of demand. The structure will encompass two separate contracts,
namely a Service Provider contract and Fund Manager contract, with scopes defined as follows:

Service Provider Contract:
o
Will be tendered around mid-2014;
o
Will need to represent the most comprehensive possible package of trunk, feeder, station
and system services in view of the progress of the infrastructure works;
o
Will comprise 4 components:





Trunk bus services component;
Feeder bus services component;
Equipment component;
Support service component;
o
Will be designed as an availability payment contract aiming to limit the demand risk
borne by the private Service Provider, while providing a safe environment for
confirmation and validation of the assumptions of the DART Agency about the growth
and general design of the DART system;
o
Will provide full services for an initial capacity ramp-up period of 2 years, allowing the
DART Agency sufficient time to build up its internal capacity to manage and further
develop the DART system, to refine its vision on the characteristics of the service and to
take over some of the scheduling and control functions;
Fund Manager contract:
o
Will be tendered around end 2014;
o
Will comprise escrow account services.
The following sections describe the main terms and conditions associated with each of those two contracts.
6.2 Service Provider contract
The Service Provider contract will be granted for a period of 12 years and will comprise the following 4
components:




Trunk services component;
Feeder services component;
Equipment component;
Support service component.
In more detail, these 4 components will function as follows.
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6.2.1 Trunk services component
6.2.1.1
Procurement of trunk buses
The DART Agency will prescribe a minimum number of trunk buses (Trunk Operational Fleet) to be
purchased and financed by the Service Provider and made available for mobilisation for trunk services. The
Service Provider will however have the freedom to determine the number of additional trunk buses (Trunk
Reserve Fleet) it requires to meet the prescribed number of operational trunk buses in view of repair,
maintenance and cleaning constraints.
In the event that demand increases above the capacity of the then Trunk Operational Fleet, the DART
Agency or the Service Provider may request the other party to agree to a proposed increase of the Trunk
Operational Fleet and the Service Provider shall use best commercial endeavours to provide those additional
trunk buses.
6.2.1.2
Operation of trunk services
The Service Provider will not enjoy contractual rights on specific trunk routes. Trunk routes will be
determined and assigned depending on operational demand requirements as part of the DART system’s
scheduling process. The initial detailed schedule for trunk services will be determined by the Service Provider
on the basis of the demand assumptions to be provided by the DART Agency and will be subject to DART
Agency approval. Reflecting the likely progress of infrastructure realisation, the trunk bus operations
component will probably be initially limited to the main trunk corridor between Kimara and Kivukoni and
therefore exclude stations of the trunk branches to the Kariakoo and Morocco terminals, which will not be
completed upon commencement of Phase 1 services.
Following an initial capacity ramp-up period of 2 years the scheduling function will be transferred to the
DART Agency, which will then make scheduling decisions and may also calibrate trunk services scheduling
requirements for the Service Provider. In particular the DART Agency reserves the right to assign different
trunk routes to the Service Provider upon commencement of Phase 2 services. Scheduling decisions or
calibrations by the DART Agency will be based on realistic assumptions of what is achievable in view of the
operational conditions as well as the size of the Trunk Operational Fleet at that point in time.
6.2.2 Feeder services component
6.2.2.1
Procurement of feeder buses
The DART Agency will prescribe a minimum number of feeder buses (Feeder Operational Fleet) to be
purchased and financed by the Service provider and made available for mobilisation for trunk services. The
Service Provider will however have the freedom to determine the number of additional feeder buses (Feeder
Reserve Fleet) it requires to meet the prescribed number of operational feeder buses in view of repair,
maintenance and cleaning constraints.
In the event that demand increases above the capacity of the then Feeder Operational Fleet, the DART
Agency or the Service Provider may request the other party to agree to a proposed increase of the Feeder
Operational Fleet and the Service Provider shall use best commercial endeavours to provide those additional
feeder buses.
6.2.2.2
Operation of feeder services
The Service Provider will not enjoy contractual rights on specific feeder routes. Feeder routes will be
determined and assigned depending on operational demand requirements as part of the DART system’s
scheduling process. The initial detailed schedule for feeder services will be determined by the Service
Provider on the basis of the demand assumptions to be provided by the DART Agency and will be subject to
DART Agency approval. Reflecting the likely progress of infrastructure realisation, the feeder bus operations
component will probably be initially limited to the Mbezi – Kimara route.
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Following an initial capacity ramp-up period of 2 years the scheduling function will be transferred to the
DART Agency, which will then make scheduling decisions and may also calibrate feeder services scheduling
requirements for the Service Provider. In particular the DART Agency reserves the right to assign different
feeder routes to the Service Provider upon commencement of Phase 2 services. Scheduling decisions or
calibrations by the DART Agency will be based on realistic assumptions of what is achievable in view of the
operational conditions as well as the size of the Feeder Operational Fleet at that point in time.
6.2.3 Equipment component
6.2.3.1
Procurement of equipment
The Service Provider will be responsible for the procurement and installation of equipment in/on:





Trunk stations;
Feeder stations (initially Mbezi only then gradually extended to the full Phase 1 feeder network);
Terminals;
Depots;
The Control Centre.
Additionally the Service Provider will have the obligation to supply compatible ITS and feeder bus fare
collection equipment to other future Service Providers upon request and at prices determined under the
Service Provider contract.
The DART Agency will prescribe the Service Provider’s scope of work for this component as follows:

Station-bound:
o
o
o
o
o
o

Depot-bound:
o

Any and all equipment and infrastructure deemed necessary by the Service Provider to
meet its contractual obligations, such as those required to repair, maintain, clean and
refuel the buses;
Bus-bound:
o
o

Fare collection hardware and software;
Communication infrastructure;
CCTV equipment and security hardware;
Backup power supply equipment ;
Passenger information displays;
Facility requirements for O&M;
Compatible trunk and feeder bus ITS equipment upon request from the Service Provider;
Compatible feeder bus fare collection equipment upon request from the Service Provider;
Control Centre:
o
o
o
o
o
Scheduling functionality;
Fleet management dispatching functionality;
Automated fare collection central system, including revenue management and
protection;
Passenger information functionality, including public announcement system
functionality;
Web-based passenger information, including:
 Journey planner;
 Real-Time Passenger Information (RTPI);
 Alerts (both ‘push’ and ‘pull’ information);
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o
o
o
o

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Communication infrastructure;
CCTV monitors;
Reporting and Business Intelligence (BI) functionality;
Training of DART Agency staff to:
 Operate the systems in the Control Centre;
 Develop comprehensive schedules for trunk and feeder services;
Unbound:
o
Fare media and stored value sales outlets.
A moment of Full System Acceptance (FSA) will be defined which will mark acknowledgement by the DART
Agency of the completion and functioning of the provided equipment as per its requirements.
6.2.3.2
Operation and maintenance of equipment
The DART Agency will prescribe the Service Provider’s scope of work for this component as follows:

Station-bound:
o
o
o
o

Depot-bound:
o

Cleaning, maintenance and physical security of the depots;
Control Centre:
o
o
o

Operation of the Automated Fare Collection System, including fare media and stored
value sales;
Customer support, including registration and lost/stolen items support;
Prevention of fare evasion;
Cleaning, maintenance and physical security of the stations;
Operational Control Centre support to the DART Agency;
Maintenance of Control Centre systems;
Configuration of Control Centre systems for Phase 2;
Unbound:
o
Operation of fare media and stored value sales.
Following an initial capacity ramp-up period of 2 years, the DART Agency will take over the scheduling and
operational fleet management functions.
6.2.4 Support service component
Following a capacity ramp-up period of 2 years, the DART Agency will take over the overseeing role of the
central AFCS so as to create a levelled playing field between the different Service Providers to be possibly
involved in the DART system in the future. It will however still require support to:





Maintain and operate the central AFCS hardware, software and databases;
Produce daily payment reports to instruct the Fund Manager;
Enable configuration changes, such as new tariffs;
Maintain the security of the system, including key management;
Perform issuance of fare media.
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Consequently the DART Agency will enter into a separate support service contract with the Service Provider
(or its central AFCS equipment subcontractor) for those services under conditions pre-determined in the
Service Provider contract. The duration of the support service contract shall be equal to 12 years minus the
duration between the date of contractual close of the Service Provider contract and the date of contractual
close of the support service contract. This will not modify in any way the general scope of the Service
Provider contract but the client of those specific services will become the DART Agency directly.
6.2.5 Remuneration
6.2.5.1
Overview
The Service Provider will be remunerated for its services as per the fee schedule below.
Table 6.
Service Provider
Remuneration
Service Provider Fees Overview
Type
TF
Trunk Km Fee
Unit Charge per Trunk
Km
FF
Feeder
Passenger Fee
Unit Charge per Paid
Feeder Passenger Trip
EF
Equipment Fee
SF
Support Service
Fee
RF
Revenue Fee
Fixed Periodic
Payment
(lowered by SF after
capacity ramp-up
period of 2 years)
Fixed Periodic
Payment
(taken from EF after
capacity ramp-up
period of 2 years)
Unit Charge per Paid
Trunk Passenger Trip
Guarantees
Annual Minimum
Guaranteed Number
of Trunk Km
Annual Minimum
Guaranteed Number
of Paid Feeder
Passenger Trips
-
-
-
Payment Timing
Tender
Starts upon FSA
Financial bid
criterion
Starts upon FSA
Financial bid
criterion
Starts upon FSA
Financial bid
criterion
Starts after
capacity rampup period of 2
years
-
Starts upon FSA
Pre-set per
Paid Trunk
Passenger
Trip
Source: DART Agency
In addition the Service Provider will be free to retain full advertisement rights on some areas in the stations
and terminals, on its buses (inside and outside) as well as on the Contactless Smart Cards. Rules and
regulations pertaining to advertising will be specified in the Service Provider contract.
6.2.5.2
Trunk Km Fee (TF)
Following FSA the Service Provider will receive a fee per trunk km travelled by each trunk bus as part of the
trunk services. This fee will be paid monthly and in TZS. The Trunk Km Fee will be subject to periodic
indexation as per a formula containing a number of prescribed indices.
In addition, if in a continuous period of twelve calendar months commencing from FSA and then onwards on
an annual basis, the yearly average number of trunk km travelled by trunk buses as part of the trunk services
is lower than 70,000 per trunk bus (Annual Minimum Guaranteed Number of Trunk Km), the DART Agency
will pay the difference to the Service Provider based on 60% of the Trunk Km Fee.
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Feeder Passenger Fee (FF)
Following FSA the Service Provider will receive a fee per paid feeder passenger trip (combined trips including
two feeders count twice). This fee will be paid monthly and in TZS. The Feeder Passenger Fee will be subject
to periodic indexation as per a formula containing a number of prescribed indices.
In addition, if in a continuous period of twelve calendar months commencing from FSA and then onwards on
an annual basis, the yearly average number of paid feeder passenger trips is lower than 200,000 per feeder
bus (Annual Minimum Guaranteed Number of Paid Feeder Passengers Trips), the DART Agency will pay the
difference to the Service Provider based on 100% of the Feeder Passenger Fee.
6.2.5.4
Equipment Fee (EF)
Following FSA the Service Provider will receive a fixed equipment fee. This fee will be paid monthly and in
TZS. The Equipment Fee will be subject to periodic indexation as per a formula containing a number of
prescribed indices.
After the capacity ramp-up period of 2 years the Equipment Fee will be lowered by an amount equal to the
Support Service Fee.
6.2.5.5
Support Service Fee (SF)
After the capacity ramp-up period of 2 years the provider of the support service (central AFCS equipment
provider) will receive a fixed support service fee. This fee will be paid monthly and in TZS. The Support
Service Fee will be subject to periodic indexation as per a formula containing a prescribed index.
6.2.5.6
Revenue Fee (RF)
Following FSA the Service Provider will receive a fee per paid trunk passenger trip. This fee will be paid
monthly and in TZS. The Revenue Fee will be subject to periodic indexation as per a formula containing a
prescribed index.
6.2.5.7
Advertising and commercial revenues
The Service Provider will be free to commercialise specified advertising space on and in the stations and
buses as well as on the Contactless Smart Cards and retain associated revenues. The technical specifications
will specify the surfaces allowed for advertising.
6.3 Fund Manager contract
The Fund Manager contract will be granted for a period of 12 years and will comprise escrow account
management services. The Fund Manager will be directly responsible to the DART Agency and will carry out
the following functions:



Put payment procedures in place for the management of the DART system’s resources;
Make payments to the various actors within the DART system upon instruction from the DART
Agency on the basis of pre-agreed terms;
Prepare regular financial reports for submission to the DART Agency.
The Fund Manager will be remunerated by a fixed annual Agency Fee (AF) resulting from a competitive
solicitation of quotes from renown financial institutions in Tanzania.
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7 Investment framework
7.1 Foreign investment policy
Since economic liberalisation all sectors are generally open to foreign investment, including:







Unrestricted access to international arbitration;
Reduced import duty on raw materials;
Straight line accelerated depreciation allowance on capital goods;
Unrestricted right to repatriate profits;
Fast track to obtain permits (residence, work) and industrial licences;
Automatic statutory permission to employ up to 5 expatriates (for more expatriates additional
applications can be made in the normal way, but there is no statutory right to employ them);
Government recognition.
7.2 Finance regime
There are generally no restrictions on loans or equity investments into Tanzania. There are however
restrictions on investment in certain sectors where local participation by Tanzanians is mandatory. There are
generally no restrictions on taking security in Tanzania over assets in Tanzania for loans made in Tanzania.
Withholding tax does not apply on loans from Tanzanian banks to businesses in Tanzania. However,
withholding tax does apply to interest paid on loans from foreign banks to businesses in Tanzania. 1
Currently the withholding tax rate is 10%. 2 The Procurement Law does not expressly prohibit the exercise of
step-in rights by lenders.
7.3 Tanzania Investment Centre
The Tanzania Investment Centre (TIC) was established in 1997 3 to be "the primary agency of Government to
coordinate, encourage, promote and facilitate investment in Tanzania and to advise the Government on
investment related matters". All Government departments and agencies are required by law to cooperate
fully with TIC in facilitating investors.
TIC has three main roles as follows:



It is the focal point for investors;
It is a first point of call for potential investors;
It is a "One Stop Facilitative Centre for all investors", engaging in the business of marketing
Tanzania as an investment destination.
As a primary agency of the Government in all investment matters, TIC is charged with the following
functions:





1
Assist in establishment of enterprises e.g. incorporation and registration of enterprises;
Obtain necessary licenses, work permits, visas, approvals, facilities or services;
Sort out any administrative barriers confronting both local and foreign investments;
Promote both foreign and local investment activities;
Secure investment sites and assist investors to establish EPZ projects;
Section 84 Income Tax Act 2004
2
Income Tax Act, 2004, Schedule I, paragraph 4(b)(2).
3
Tanzania Investment Act 1997
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

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Issue “Certificates of Incentives”, investment guarantees and register technology agreements for
all investments, which are over and above USD 300,000 for foreign investments and USD 100,000
for local investments;
Provide and disseminate up to date information on existing investment opportunities, benefits or
incentives available to investors;
Assist all investors whether or not registered by TIC.
A TIC Certificate of Incentives gives automatic right to hire up to 5 expatriates. If more are needed then
these will be considered on case by case basis.
Projects that are considered to be major or strategic investments are entitled to benefits that are additional
to the ones granted under the Tanzania Investment Act, which the investor can negotiate directly with the
Government.
An investor may also apply to the TIC for a strategic investor status, if it has a project that is over USD 20
million that will have a significant positive impact on the local economy. 4 The criteria for qualifying for
strategic investor status include:





The size of investment and its general impact on the national economy;
Significant job creation;
Export and foreign exchange earning capacity of the project;
The introduction of new technology; and
Investment in specific geographical areas. 5
Applications for strategic investor status are reviewed by the National Investment Steering Committee.
7.4 PPP regime
Public Private Partnerships are governed by the Public Private Partnership Act 2010. The term “partnership”
is defined under the Public Private Partnership Regulations 2011 as:
“an arrangement between a contracting authority (public body) and a private party in which the private
party:




Performs an institutional function on behalf of the institution;
Acquires the use of public property for its commercial purposes;
Assumes substantial financial, technical and operational risks in connection with the performance
of the institutional function or use of state property; and
Receives a benefit for performing the institutional function or from utilising the public property,
either by way of:
o consideration to be paid by the contracting authority which derives from a revenue fund
or where the contracting authority is a central government or a local government
authority, from the revenues of such authority;
o charges or fees to be collected by the private party from users or customers of a service
provided to them; or
o a combination of such consideration and such charges or fees.”
Basic principles of the PPP framework in Tanzania include:

All PPP projects must be procured through an open and competitive bidding process in accordance
with the procurement laws. 6
4
Section 28 Finance Act 2012
5
Regulation 49 The Investment Regulations Cap 38
6
Section 15(2) Public Private Partnership Act 2010
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PPP agreements shall endeavour to provide opportunity for empowerment of the citizens of
Tanzania as provided for under the National Economic Empowerment Act Cap 386. 7
7.5 Procurement regime
The Public Procurement Act 2011 (Procurement Act) and Public Procurement Regulations 2013
(Procurement Regulations) govern the public procurement regime in Tanzania. The Procurement Act and
Procurement Regulations came into force on 15 December 2013 under Government Notices 445 and 446
respectively.
The Public Procurement Regulatory Authority (PPRA) was set up under the Procurement Act. 8 The
objectives of the PPRA include the requirement to ensure the application of fair, competitive, transparent,
non-discriminatory and value for money procurement standards and practices. 9
The functions of the PPRA include monitoring the award and implementation of public contracts with a view
to ensuring that:



Such contracts are awarded impartially and on merit;
The circumstances in which each contract is awarded or as the case may be, terminated, do not
involve impropriety or irregularity;
Without prejudice to the functions of any public body in relation to any contract, the
implementation of each such contract conforms to the terms thereof. 10
The PPRA has wide scope for investigations which includes, amongst other things, to have access to all
books, records, documents, or other property belonging to the DART Agency or a tenderer, whether in the
possession of any officer of the DART Agency or a tenderer. 11
7.6 Big Results Now (BRN)
BRN is an initiative that was launched by the President of Tanzania in February 2013. The Presidential
Delivery Bureau (PDB) is an independent department under the President’s Office, which the President has
set up using the powers vested by him under section 5(1) of the Ministers (Discharge of Ministerial Functions)
Act Cap 299.
PDB follows up closely on the implementation of projects and focuses the attention of top leaderships in
monitoring investment in the prioritised areas. PDB can provide high-level intervention if needed by
discussing challenges in the identified projects at ministerial level.
The Government of Tanzania has selected 6 National Key Results Areas (NKRAs) which it believes require
intervention in order to achieve Big Results Now. Project sectors which will be monitored by PDB as part of
the first wave of the BRN initiative include:
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
Agriculture;
Education;
Energy;
Water;
Transport;
Resource mobilisation (including PPP projects).
7
Section 25 Public Private Partnership Act 2010
8
Section 7 Public Procurement Act 2011
9
Section 8 Public Procurement Act 2011
10
Section 9(1) Public Procurement Act 2011
11
Section 9(2)(b) Public Procurement Act 2011
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The DART system is one of three PPP projects that PDB is focusing on within the transport and resource
mobilisation NKRAs and as such enjoys strong support from the highest levels of government.
7.7 Local content requirement
The National Economic Empowerment Policy aims to ensure that Tanzanians have access to opportunities
to participate effectively in economic activities in all sectors of the economy. 12 The use of local content in
procurement processes is also encouraged under the Procurement Act and Procurement Regulations.
One of the key principles of public procurement is that tenderers are allowed to participate in procurement
proceedings without regard to their nationality. 13 Tenderers who are either Tanzanian citizens or Tanzanian
firms that form associations with foreign firms, are however eligible to be granted a margin of preference if
they meet the criteria set out under the Procurement Act and are registered with the Public Procurement
Regulatory Authority (PPRA) or any other statutory body acceptable to PPRA. 14
The DART Agency encourages foreign firms to team up with Tanzanian tenderers in either joint ventures or
subcontracting arrangements during the tender process and the execution of the services. For the Phase 1
tenders a margin of preference might be granted to local firms or associations between local and foreign
firms.
7.8 Tax regime
A corporation will be liable to tax if it is incorporated in Tanzania and at any time during the year of income
the management and control of the affairs of the corporation are exercised in Tanzania. 15 Taxes which are
applicable to the private Service Provider’s activities and the project assets include:
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Corporation tax;
Gains on realisation or disposal of investment assets;
Value added tax;
Withholding tax;
Stamp duty;
Import/customs duty;
Service levy;
Skills and development levy.
7.9 Employment regime
The Employment Act 2004, the Labour Institutions Act 2004 and subsequent related rules govern all
employment matters in Tanzania. The law covers both foreign and local employees and employers within
Tanzania. Provisions are made under the Employment Act for trade unions and employer associations and
employees have rights under the Employment Act to register with trade unions, and engage in lawful strikes.
As an employer, the private Service Provider will be required to enter into a written contract with a
prospective employee which sets out basic requirements such as a monthly salary, maximum working hours,
provisions for overtime pay, a probationary period to enable the employer to assess if the employee has the
capacity or compatibility of the required job, and fringe benefits. Minimum wages for specific sectors are set
out in the Labour Institutions Wage Order and are revised from time to time. Current minimum wages were
published on 28 June 2013 under the Labour Institutions Wage Order 2013.
12
The Ministry of Planning, Economy and Empowerment website <http://www.tanzania.go.tz/mpee/policy.html> (visited on 27 November 2007)
13
Section 54(1) Public Procurement Act 2011
14
Regulations 33(2) Public Procurement Regulations 2013
15
Section 66(4) Income Tax Act Cap 332 R.E. 2006 as amended
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8 Tendering process
8.1 Overview
The Service Provider and Fund Manager will be selected through open and transparent international bidding
processes in accordance with the laws and regulations applicable to public procurement in Tanzania.
The DART Agency intends to follow the below indicative schedule for the procurement of Phase 1 services:
June 2014
DART Phase 1 Market Consultation Session in Dar es Salaam
June – November 2014
January – March 2015
Service Provider Tendering Process
Service Provider Commercial and Financial Close
January – March 2015
April 2015
Fund Manager Tendering Process
Fund Manager Commercial and Financial Close
8.2 Service Provider tendering process
The Service Provider tendering process will follow the laws and regulations applicable to the procurement of
Public-Private Partnerships. The envisaged process includes a series of steps as follows.
Figure 29.
Service Provider procurement process
Invitation to Prequalify
Qualifications Document
Prequalification
Request for Proposals
Initial Tender
Negotiations
Final Bidding Documentation
Final Tender
Selection of
Preferred Bidder
Approval
Contract Signing
Financial Close
Source: DART Agency
Details of the prequalification and tender criteria will be made available in due time respectively as part of
the Request for Expressions of Interest (RFEOI) and the Request for Proposals (RFP).
8.3 Fund Manager tendering process
The Fund Manager tendering process will follow the laws and regulations applicable to general public
procurement. Details of the tendering process will be made available in due time.
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9 Contact
For any comments or queries please do not hesitate to contact:
RebelGroup International B.V.
Mr. Jeroen in ‘t Veld
Lead Transaction Advisor
jeroen.intveld@rebelgroup.com
May 2014