Chinese firm plans 2.7tri/- PPP project to decongest Dar

• China’s COVEC is studying the possibility of building 10 toll inner and outer ring roads in Tanzania’s commercial hub

DAR ES SALAAM: THE government is engaged in discussions with the China Overseas Engineering Group Co Ltd (COVEC), regarding a substantial investment of 1 billion US dollars (about 2.7tri/-) aimed at alleviating traffic congestion in Dar es Salaam.

COVEC, a prominent Chinese construction firm, has proposed the construction of ten toll roads—six inner and four outer ring roads—under a Public-Private Partnership (PPP) framework.

This initiative comes in response to the growing traffic challenges faced by one of Africa’s fastest-growing cities and the country’s bustling commercial centre.

Executive Director of the PPP Centre, Mr David Kafulila revealed that COVEC has submitted an unsolicited expression of interest to the Tanzanian government.

He said, “A pre-feasibility study for the proposed project has already been completed and the investor is now seeking a Memorandum of Understanding (MoU) with the government to facilitate a comprehensive feasibility study.”

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The projected cost of the capital expenditures (CAPEX) for this ambitious infrastructure project is estimated at around 1 billion US dollars. This investment is anticipated to play a crucial role in enhancing urban mobility and improving the overall infrastructure of Dar es Salaam.

A 2020 study conducted by the Confederation of Tanzania Industries (CTI) highlighted the severity of traffic congestion in Dar es Salaam, revealing that it consumes up to 20 per cent of local businesses’ profits.

During peak hours, navigating the city can be a daunting task for drivers, exacerbated by the rapid urbanisation and population growth.

In an effort to tackle these challenges, the government has initiated several infrastructure projects, including the construction of flyovers at key intersections and the expansion of the World Bank-funded Dar es Salaam Bus Rapid Transit (BRT) system. These initiatives aim at improving traffic flow and providing more efficient transportation options for residents.

The proposed ring roads are expected to significantly redirect traffic and reduce congestion, particularly during peak commuting times.

Kafulila noted, “The outer and inner ring roads will alleviate pressure on overloaded routes around Dar es Salaam, ultimately reducing travel time for commuters and improving the overall efficiency of the city’s transport network.”

Since its establishment over three decades ago, COVEC has successfully undertaken more than 1,000 large and medium-sized projects across nearly 100 countries.

With a total contract value exceeding 12.22 billion US dollars (about 33.2tri/-) and a turnover of 8.584 billion US dollars (about 23.3tri/-), COVEC’s portfolio includes a diverse range of infrastructure projects, such as housing construction, roads, bridges, irrigation systems, water conservancy and photovoltaic power stations.

The involvement of COVEC in this project reflects Tanzania’s broader strategy to attract foreign investment in infrastructure development, which is vital for fostering economic growth and enhancing the quality of life for its citizens.

As discussions progress, the government and COVEC remain optimistic about the potential impact of the ring roads on Dar es Salaam’s urban landscape, aimed at creating a more sustainable and navigable city for all residents.