Tanzania Construction Project Funded by Denmark

The Tanzania construction sector has received 76,169,427.49 Euro from the government of Denmark to be applied to the cost of repairing the 150 km of TANZAM highway, which runs between Morogoro and Iringa.

Supervision of the project will be handled by COWI-Denmark Consulting Engineers and Planners Limited and will be executed by Per Aarsleff Contractors of Denmark in association with Tanroads.

The contract was originally given exclusively to Per Aarsleff AS of Denmark with Interbenton BV as a sub-contractor.

However, after the contract had been granted and the project began, permission to assign the project as a Joint Venture between the two contractors was applied for and granted because the Government saw the move as a risk-mitigating measure.

Therefore, currently, the contract officially belongs to Aarsleff/Interbenton J.V. I/S, as a Joint Venture company that is incorporated in Denmark.

Financing for the project is being distributed via a Mixed Credit arrangement, which is officially a loan arrangement that follows guidelines from the Organization for Economic Cooperation and Development (OECD).

This project marks the third road contract that Denmark has financed on the TANZAM Highway, including the earlier rehabilitation of 56 km of road between Dar es Salaam and Mlandizi as well as the 129 km of road from Chalinze to Melela, via Morogoro.

According to the Iringa Tanroads regional manager, Paul Lyakurwa, “implementation of the Tanzam highway rehabilitation project has been divided into four segments: The first segment is from Iyovi (Morogoro) to Ruaha Mbuyuni (39.6 km), the second is from Ruaha Mbuyuni (46.7 km), the third will start from Ikokoto-Iringa (Kitwiru) (about 60.9 km), and the fourth is from the junction in Iringa to Ipogolo area in the municipality (2.1 km).”

Mr. Lyakurwa went on to explain that the third and fourth segments of the contract, from Ikokoto to Iringa (Kitwiru) and from Ipogolo to Iringa town respectively, had been given to Per Aarsleff earlier in November and work was set to begin soon.

The contactor is now working to mobilize a full force while, at the same time, is working to develop a rock quarry near Ilula.

Once the quarry has become operational and an asphalt plant has been set up in the region, work can officially begin on the road section that is closest to Iringa.

In addition to rebuilding and strengthening the roadway, paved shoulders and climbing lanes are also expected to be constructed in order to make the roads safer.

Other measures to improve overall traffic safety are also planned for the neighboring towns, villages and various hazardous locations.

Construction work on these projects is expected to begin seriously in January and to be mostly completed by the middle of 2011.