Tanzania Investment and Consultant Group Ltd

| Economic Research Centre

Transformative Investments in TANROADS' Top 10 Projects 2015–2021
November 19, 2024  
TANROADS’ top 10 infrastructure projects, valued at 1,846.422 Billion TZS, highlight a strategic focus on transformative investments between 2015 and 2021. The J.P. Magufuli Bridge, the most expensive project at 592.609 Billion TZS, underscores the prioritization of specialized, high-impact infrastructure. While projects like BRT Phase 2 Lot 1 focus on urban mobility with a cost […]

TANROADS’ top 10 infrastructure projects, valued at 1,846.422 Billion TZS, highlight a strategic focus on transformative investments between 2015 and 2021. The J.P. Magufuli Bridge, the most expensive project at 592.609 Billion TZS, underscores the prioritization of specialized, high-impact infrastructure. While projects like BRT Phase 2 Lot 1 focus on urban mobility with a cost of 189.4 Billion TZS, rural connectivity is efficiently addressed through cost-effective roadworks such as Komanga-Kasinde LOT2 and Kasinde-Mpanda LOT3, averaging just 1.24 Billion TZS/km. These investments reflect TANROADS’ commitment to improving transport, trade, and regional integration across Tanzania.

1. J.P. Magufuli Bridge

  • Contract Value: 592.609 Billion TZS
  • Signing Date: 29/07/2019
  • Length: 3.20 km
  • Cost per km: ~185.19 Billion TZS/km
  • Key Features:
    • By far the most expensive project.
    • Nearly three times the cost of the second-highest project, due to its specialized infrastructure.
    • Likely serves as a critical link in Tanzania's national transportation network.

2. BRT Phase 2 Lot 1

  • Contract Value: 189.400 Billion TZS
  • Signing Date: 10/12/2018
  • Length: 20.30 km
  • Cost per km: ~9.33 Billion TZS/km
  • Purpose: Developing Bus Rapid Transit (BRT) infrastructure for Dar es Salaam, enhancing urban mobility.

3. Lusitu-Mawengi LOT2

  • Contract Value: 159.217 Billion TZS
  • Signing Date: 22/08/2016
  • Length: 50.00 km
  • Cost per km: ~3.18 Billion TZS/km
  • Key Features: Significant for regional connectivity.

4. Usesule-Komanga LOT1

  • Contract Value: 158.800 Billion TZS
  • Signing Date: 12/11/2017
  • Length: 117.67 km
  • Cost per km: ~1.35 Billion TZS/km
  • Key Features: Covers a substantial length, making it cost-efficient on a per-km basis.

5. Widening of Morogoro Road (Kimara–Kibaha)

  • Contract Value: 140.450 Billion TZS
  • Signing Date: 13/07/2018
  • Length: 19.20 km
  • Cost per km: ~7.32 Billion TZS/km
  • Type: Road widening project to reduce traffic congestion and enhance trade flow.

6. Komanga-Kasinde LOT2

  • Contract Value: 140.000 Billion TZS
  • Signing Date: 12/11/2017
  • Length: 112.80 km
  • Cost per km: ~1.24 Billion TZS/km
  • Key Features: Among the lowest per-kilometer costs, reflecting efficient use of resources.

7. Kasinde-Mpanda LOT3

  • Contract Value: 133.800 Billion TZS
  • Signing Date: 12/11/2017
  • Length: 108.00 km
  • Cost per km: ~1.24 Billion TZS/km
  • Key Features: Continues the connectivity corridor established by Komanga-Kasinde LOT2.

8. LOT 2: Ihumwa Dry Port – Matumbulu – Nala Section

  • Contract Value: 120.860 Billion TZS
  • Signing Date: 14/02/2020
  • Length: 60.00 km
  • Cost per km: ~2.01 Billion TZS/km
  • Purpose: Facilitating logistics and trade efficiency through improved connectivity.

9. Moronga-Makete LOT2

  • Contract Value: 110.446 Billion TZS
  • Signing Date: 06/02/2017
  • Length: 53.50 km
  • Cost per km: ~2.06 Billion TZS/km

10. LOT 1: Nala – Veyula – Mtumba – Ihumwa Dry Port Section

  • Contract Value: 100.840 Billion TZS
  • Signing Date: 10/07/2020
  • Length: 52.30 km
  • Cost per km: ~1.93 Billion TZS/km

Key Observations and Trends

1. Cost Distribution

  • Total Value: 1,846.422 Billion TZS
  • Share of Total Budget: Represents 56.6% of all TANROADS projects analyzed.

2. Timeline Pattern

  • 2017–2020 Dominance:
    • 2017: 3 projects
    • 2018: 2 projects
    • 2019: 1 project
    • 2020: 2 projects
    • 2016: 1 project

3. Project Types

  • Specialized Infrastructure: High costs for unique projects like J.P. Magufuli Bridge and BRT Phase 2.
  • Road Networks: Focus on connectivity and regional development.
  • Urban Development: Projects like road widening (Kimara–Kibaha) address traffic and urban transit.

4. Cost Efficiency

  • Highest Cost per km: J.P. Magufuli Bridge (~185.19 Billion TZS/km) reflects the complexity and engineering required.
  • Lowest Cost per km: Komanga-Kasinde LOT2 and Kasinde-Mpanda LOT3 (~1.24 Billion TZS/km) due to simpler terrains or resource efficiency.

5. Geographic Distribution

  • Projects cover diverse regions, from urban centers like Dar es Salaam to rural areas, ensuring equitable development.

The analysis of the top 10 TANROADS projects provides several insights into Tanzania's infrastructure priorities and investment strategy:

1. Strategic Investment Priorities

  • Focus on High-Impact Projects: Projects like J.P. Magufuli Bridge and BRT Phase 2 Lot 1 emphasize TANROADS’ focus on large-scale, transformative infrastructure to support national and regional connectivity.
  • Urban vs. Regional Development: Investments are balanced between improving urban transit systems (e.g., BRT, Morogoro Road) and expanding rural road networks (e.g., Komanga-Kasinde LOT2).

2. Cost Efficiency and Project Complexity

  • High Costs for Specialized Projects:
    • J.P. Magufuli Bridge (~185.19 Billion TZS/km) showcases the cost-intensive nature of engineering projects requiring advanced technology and materials.
    • Urban projects like BRT also exhibit higher costs due to land acquisition and urban constraints.
  • Economies of Scale in Road Projects: Projects like Komanga-Kasinde LOT2 and Kasinde-Mpanda LOT3 (~1.24 Billion TZS/km) demonstrate efficiency in rural road construction.

3. Timeline and Budget Focus

  • Peak Signing Period (2017–2020): Most projects were signed during this period, signaling:
    • A deliberate push for infrastructure growth.
    • Alignment with Tanzania’s economic development plans, such as industrialization and regional trade facilitation.
  • Budget Allocation Concentration: The top 10 projects account for 56.6% of the total budget, reflecting a focus on a few, impactful developments rather than dispersing resources.

4. Geographic Distribution

  • Equitable Development: Projects are geographically distributed to ensure all regions benefit:
    • Urban improvements (e.g., BRT, Morogoro Road).
    • Rural connectivity (e.g., Komanga-Kasinde, Lusitu-Mawengi).

5. Infrastructure and Economic Growth Link

  • Trade and Logistics: Projects like Ihumwa Dry Port – Matumbulu and Nala – Veyula – Mtumba enhance logistics, supporting Tanzania as a trade hub for East Africa.
  • Urban Transit: BRT projects reduce urban congestion, enabling more efficient movement of people and goods.
  • Regional Integration: Roads connecting rural areas (e.g., Kasinde-Mpanda) improve market access for farmers and small businesses.

TANROADS is executing a deliberate strategy to prioritize impactful, high-value projects that address both urban and rural needs. By focusing on cost efficiency, geographic inclusivity, and economic relevance, these projects significantly enhance Tanzania’s infrastructure, trade capacity, and economic growth potential.

Top 10 TANROADS Projects by Contract Value (2015–2021):

RankProject NameContract Value (Billion TZS)Signing DateLength (km)Cost per km (Billion TZS)Key Highlights
1J.P. Magufuli Bridge592.60929/07/20193.20185.19Most expensive project, critical national transport link.
2BRT Phase 2 Lot 1189.40010/12/201820.309.33Urban transit infrastructure for Dar es Salaam.
3Lusitu-Mawengi LOT2159.21722/08/201650.003.18Enhances regional connectivity.
4Usesule-Komanga LOT1158.80012/11/2017117.671.35Large-scale, cost-efficient rural connectivity project.
5Widening of Morogoro Road (Kimara–Kibaha)140.45013/07/201819.207.32Urban road widening to reduce congestion and enhance trade flow.
6Komanga-Kasinde LOT2140.00012/11/2017112.801.24Efficient road project supporting rural regions.
7Kasinde-Mpanda LOT3133.80012/11/2017108.001.24Complements Komanga-Kasinde project to strengthen connectivity.
8LOT 2: Ihumwa Dry Port – Matumbulu – Nala120.86014/02/202060.002.01Improves logistics for trade efficiency.
9Moronga-Makete LOT2110.44606/02/201753.502.06Supports regional transport connectivity.
10LOT 1: Nala – Veyula – Mtumba – Ihumwa100.84010/07/202052.301.93Facilitates transport and logistics efficiency.

Key Observations:

  • Highest Value: J.P. Magufuli Bridge dominates at 592.609 Billion TZS with the highest cost per km.
  • Most Cost-Efficient: Komanga-Kasinde LOT2 and Kasinde-Mpanda LOT3, each at 1.24 Billion TZS/km.
  • Balanced Focus: Mix of urban projects (e.g., BRT, Morogoro Road) and rural road networks to boost connectivity and trade.

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