Project Name - Documents & Reports

Project Name
Project ID
Implementing Agencies
Environment Category
Date PID Prepared
Date of Appraisal
Date of Board Approval
Report No.: AB4792
Roads and highways (62%); Aviation (24%); Agricultural markets
and trade (10%); General transportation sector (4%)
Themes: Rural services and infrastructure (72%); Infrastructure
services for private sector development (26%); Other public sector
governance (2%)
United Republic of Tanzania, Ministry of Finance and Economic
P.O. Box 9111
Tel: +255 22 2112854 Fax: +255 22 2117090 / 2110326
Tanzania National Roads Agency (TANROADS)
Tanzania Airports Authority (TAA)
Ministry of Infrastructure Development (MoID)
[] A [X] B [ ] C [ ] FI [] TBD (to be determined)
March 18, 2010
March 1, 2010
May 27, 2010
Country and sector issues
Tanzania’s Economy. From 2002 to 2008 Tanzania has experienced sustained growth
of around seven percent thanks to the implementation, since the mid nineties, of a comprehensive
economic reform program that has produced good macroeconomic performance and stability
characterized by relatively high economic growth and low inflation. The global financial crisis
has resulted in a decline in growth from 7.4 percent in 2008 to five percent in 2009. One of the
country’s main challenges remains to translate economic growth into poverty reduction, with the
country registering only a small decline in poverty incidence from 35.7 percent in 2000 to 33.5
percent in 2007. Key growth sectors are mining, construction, manufacturing, and tourism—all
sectors that strongly depend on and generate transport. Poor transport infrastructure is a major
bottleneck and increased and sustained investment is needed. Past finance has been insufficient
to cope with growth and to ensure an appropriate infrastructure platform to achieve the
Millennium Development Goals or the National Development Vision 2025.
Transport System. The current transport system consists of roads, railways, aviation,
water transport, and pipelines. The road network length on the mainland of Tanzania is 86,472
kilometers (Zanzibar has about 1,600 kilometers of roads). This includes trunk and regional
roads (29,847 kilometers), which are managed by the Tanzania National Roads Agency
(TANROADS) and the urban, district, and feeder roads with a total length of 56,625 kilometers
managed by the 132 Local Government Authorities (LGA). The Tanzania railways system has a
total length of 3,681 kilometers of which 2,706 kilometers are operated by Tanzania Railways
Limited (TRL), and 975 kilometers by the Tanzania-Zambia Railway Authority (TAZARA). The
Tanzania Port Authority (TPA) is responsible for all ocean and lake ports. The most important
ports are Dar es Salaam (DSM), Tanga and Mtwara on the Indian Ocean mainland shore, and
Mwanza, Kigoma and Itungi on the inland lakes. There are a total of 368 aerodromes, 62 of
which are owned, managed and operated by the Tanzania Airports Authority (TAA), and the
others by a variety of entities including national park authorities and the private sector. There are
four international airports namely the Julius Nyerere, Kilimanjaro, Mwanza and Zanzibar
airports. The Zanzibar International Airport is managed by the Government of Zanzibar (GoZ) as
is the case for the Zanzibar and Pemba ports and roads. The Tanzania – Zambia (TANZAM)
pipeline provides oil for the refinery in Lusaka, Zambia, via the DSM port.
Project development objectives and key indicators
The development objectives of the project are: to improve the condition of the national
paved road network, to lower transport cost on selected roads, and to expand the capacity of
selected regional airports.
The project outcome indicators are the following: (i) average vehicle operating costs on
Korogwe – Same and Arusha – Minjingu roads; (ii) roads in good and fair condition as a share of
total classified roads (Core Indicator); and (iii) passenger volumes at Bukoba, Kigoma and
Tabora airports. There are an estimated 5.15 million direct beneficiaries (users of the transport
facilities) and a further 11.1 million indirect beneficiaries who will gain from the reduced
transport costs in the affected regions.
Project components
Component A: Rehabilitation and preparation of designs for the rehabilitation of
paved trunk roads (US$186.5 million, 100 percent IDA financed): this component will be
implemented by TANROADS and will finance, out of the rehabilitation backlog of about 1200
kilometers of paved trunk roads: (i) rehabilitation of the Korogwe – Same road (172 kilometers);
(ii) rehabilitation of the Arusha – Minjingu road (98 kilometers); and (iii) the preparation of
design and bidding documents for future rehabilitation of 911 kilometers of paved trunk roads.
The Korogwe-Same road forms part of the North East Corridor (T2), which is a major link
between the east coast and the popular tourist destinations in the north of Tanzania. It is also the
main road link between DSM and Nairobi, the major trading centers of Tanzania and Kenya
respectively. The Arusha – Minjingu road is part of the great African North – South axis from
Cairo to Cape Town, and also it connects Arusha with the important northern Tanzanian national
parks including Serengeti.
Component B: Improvement of regional airports (US$69.2 million of which IDA
US$57.5 million and GoT US$11.7 million): this component will be implemented by the
Tanzania Airports Authority (TAA). Under this component the paving and rehabilitation of the
runway at Kigoma airport, the rehabilitation of the main runway at Tabora airport, as well as the
extension, rehabilitation, and resurfacing of the runway at Bukoba airport, with the replacement
of the current apron, terminal, car parking, and other facilities, will be financed. Out of the
thirteen high priority commercial airports identified under the TSIP for immediate improvement,
design and bidding documents have been prepared for seven airports. Among them, these three
airports have been selected due to their high economic returns and the low likelihood to get other
Component C: Improvement of road safety (US$6.0 million, 100% IDA financed):
this component will be implemented by MoID. It will support the establishment of the National
Road Safety Agency (NRSA), the Driver and Vehicle Examination and Licensing Agency
(DVELA), and the development of a Road Accident Information System (RAIS), as proposed in
the recently adopted National Road Safety Policy (NRSP).
Component D: Promotion of Public-Private Partnerships: (US$5.0 million, 100%
IDA financed): the implementation of this component will be overseen by MoID, while actual
contracts for feasibility studies and transaction advisors would be procured by the concerned
entities (TANROADS, TAA, TPA, PMO-RALG, RAHCO). This component would include: (i)
capacity building for the implementation of PPP projects; (ii) feasibility studies of potential PPP
projects; and (iii) transaction advisors for projects that were found feasible.
Component E: Emergency Road and Bridge Repair: (US$15 million, 100% IDA
financed): this component will be implemented by TANROADS. Emergency repair of parts of
national roads and bridges damaged by recent floods at approximately one hundred locations
throughout Tanzania will be executed under this component. Rapid Response to Crises and
Emergencies Guidelines of the World Bank (OP 8.00) apply. This includes retroactive financing
(of 40 percent of the component amount) and accelerated, consolidated, and simplified
procedures under streamlined ex-ante procurement and safeguards requirement, as outlined in
Annex 8, paragraph 4, and Annex 10, paragraph 24 of this document.
International Development Association (IDA)
Tanzania Airports Authority (TAA)
Contact: Dieter E. Schelling
Title: Lead Transport Specialist
Tel: : (255-22) 2163273
Fax: (255-22) 2113039
Email: [email protected]
Location: Dar es Salaam, Tanzania (IBRD)
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