Cost comparison SGR Kenya vs SGR Tanzania

Cost comparison SGR Kenya vs SGR Tanzania

Update: TIRP MGR Dar-Isaka (98%), SGR Dar-Morogoro (90%), next is system testing and commissioning (to take 4% of the whole project), Mwanza-Isaka SGR is explained!





Tanzania Intermodal and Rail Development Project(TIRP)


Tanzania Intermodal and Rail Development Project (TIRP) is the World Bank funded project for the revival of the metre gauge railway network in Tanzania. This project is financed by the World Bank at US$300million.

Objectives of the Project
To provide a reliable open access infrastructure on the Dar es Salaam Port and Isaka segment of the Metre gauge Central Line.

About the Project
Project intends to rehabilitate Railway from Dar es Salaam to Isaka (970km) to increase its capacity of carrying freight from 13.5 Tones axle load to 18.5 axle load.

  • To construct new 80pound rail covering 312km.
  • To rehabilitate 658km railway.
  • To rehabilitate 442 bridges and culvets.
  • To improve communications system.
  • Rehabilitation of freight loading and offloading stations at Dar es Salaam Port, Ilala and Isaka Dry Port.
  • Other than rehabilitating the rail, under this project, 3 Locomotives, 44 wagons and tamping machines are being procured and repairing of two Locomotives.
Benefits of the Project
During the Project
  • Job opportunities.
  • Enhance the economy of the people surrounding the project.
  • Building knowledge and skills.
After the Project
  • Improvements on freight services.
  • Increase of Speed from 30kph to 70kph and reduce transportation costs.
  • Cut down time of uploading and offloading from Dar es Salaam port to Isaka Dry port to 24 hours.
  • Progressive plan in rail infrastructure rehabilitation to ensure reliable rail transport.
  • Building workers capacity to increase efficacy in services.
  • To reduce government burden in roads construction
Progress of the Project
  • This project involves the rehabilitation of the Meter Gauge Railways.
  • It involves two sections, from Dar es Salaam to Kilosa(283km) and from Kilosa to Isaka(687km).
  • Both section already have contractors and construction will commence on June 2018.
  • The project is now on Mobilization stage.
Issues to consider during the Project
  • Business arround railway stations without permit is strictly prohibited.
  • Business permits are available at the stations for free.
  • Pastoral activities are highly prohibited along the project sites.
  • Farmers are ordered to stop farming activities along the project site.
  • Heathy caution, it is necessary to all residents surrounding the project to avoid unprotected sex so as to reduce sexual transmitted diseases and unwanted pregnant.
  • Any abusive acts should be reported immediately to government offices or through our contact addresses.
  • Avoid sitting, staring or crossing rail sections, it’s dangerous.
  • Citizens are advised to take opportunities created in the project as a wakeup call.
Mwanzo | TRC
 
Policy
“We are not able to pay”: Kenyan MPs Urge Renegotiation of Chinese Rail Debt
Rail-Bus
16 hours ago
Kenya should renegotiate the $4.5bn loan it agreed with China to build the $3.2bn standard gauge railway between Mombasa and Nairobi, and cut the operating cost of the line by half, the country’s parliamentary transport committee has concluded (PDF).
Committee chair David Pkosing said “the entire loan framework should also be renegotiated” in light of the impact of the Covid-19 pandemic on Kenya’s finances. He said the interest rate should be decreased or the time to repay extended.

The service, which has yet to make a profit, is run by China Road and Bridge Corporation, a subsidiary of the railways builder, China Communications Construction Company.

Kenya currently pays Africa Star, China Road’s operating company, $1m a month to run the service. Since 2017, Kenya has failed to meet the monthly payment for 21 months, according to the Voice of America news site.

At present, Kenya owes Africa Star about $380m in unpaid bills, the EastAfrican news site reports.

In April, Ukur Yatani, secretary to the treasury cabinet, issued a supplementary budget that envisaged $714m in repayments to the China Export Import Bank, and £233m to the China Development Bank.

Kimani Ichung’wa, chairman of the Parliamentary Budget and Appropriate Committee, told The EastAfrican: “There are some investment decisions we have taken that are not in the best interest of the country, so it is time we start re-evaluating them and renegotiating with people who gave us the money so that we are able to survive.”

He added: “It is very easy to resolve this issue of loan repayment by just sitting down with the Chinese and telling them we made a mistake. We owe you all this money but you are also demanding so much from us in terms of repayment. This is a debt. Look, our economy is beaten and we are not able to pay. We are not saying the debt is not there, but we simply want to renegotiate what we owe you and the terms of payment.”

The railway carried more than 19,000 passengers and 421,000 tons of cargo between Nairobi and Mombasa in July. In April it was reported that it had made a reduced loss for its second year of operation (see further reading).

The line made a revenue of $126m for 2019, compared with $57m reported in 2018. However, the line’s operating cost is estimated to be $170m a year, compared with $120m in 2018.
 
Ntaghacha said:
Policy
“We are not able to pay”: Kenyan MPs Urge Renegotiation of Chinese Rail Debt
Rail-Bus
16 hours ago
Kenya should renegotiate the $4.5bn loan it agreed with China to build the $3.2bn standard gauge railway between Mombasa and Nairobi, and cut the operating cost of the line by half, the country’s parliamentary transport committee has concluded (PDF).
Committee chair David Pkosing said “the entire loan framework should also be renegotiated” in light of the impact of the Covid-19 pandemic on Kenya’s finances. He said the interest rate should be decreased or the time to repay extended.

The service, which has yet to make a profit, is run by China Road and Bridge Corporation, a subsidiary of the railways builder, China Communications Construction Company.

Kenya currently pays Africa Star, China Road’s operating company, $1m a month to run the service. Since 2017, Kenya has failed to meet the monthly payment for 21 months, according to the Voice of America news site.

At present, Kenya owes Africa Star about $380m in unpaid bills, the EastAfrican news site reports.

In April, Ukur Yatani, secretary to the treasury cabinet, issued a supplementary budget that envisaged $714m in repayments to the China Export Import Bank, and £233m to the China Development Bank.

Kimani Ichung’wa, chairman of the Parliamentary Budget and Appropriate Committee, told The EastAfrican: “There are some investment decisions we have taken that are not in the best interest of the country, so it is time we start re-evaluating them and renegotiating with people who gave us the money so that we are able to survive.”

He added: “It is very easy to resolve this issue of loan repayment by just sitting down with the Chinese and telling them we made a mistake. We owe you all this money but you are also demanding so much from us in terms of repayment. This is a debt. Look, our economy is beaten and we are not able to pay. We are not saying the debt is not there, but we simply want to renegotiate what we owe you and the terms of payment.”

The railway carried more than 19,000 passengers and 421,000 tons of cargo between Nairobi and Mombasa in July. In April it was reported that it had made a reduced loss for its second year of operation (see further reading).

The line made a revenue of $126m for 2019, compared with $57m reported in 2018. However, the line’s operating cost is estimated to be $170m a year, compared with $120m in 2018.
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