KOMANDO YOSO
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Cost comparison SGR Kenya vs SGR Tanzania
Cost comparison SGR Kenya vs SGR Tanzania
- Thread starter Geza Ulole
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KOMANDO YOSO
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Dude walio aidiwa wawekewe pia kaumeme aaaawap aloooooh hahahahahhahaaaaa
Geza Ulole
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Geza Ulole
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Geza Ulole
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Geza Ulole
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Geza Ulole
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Geza Ulole
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Turkey contractor confirms $1.8bn gap in funding Tanzania SGR
SUNDAY OCTOBER 08 2023
A carriage for the Standard Gauge Railway project is unloaded at the port in Dar es Salaam, Tanzania on November 25, 2022. PHOTO | ERICKY BONIPHACE | AFP
Summary
By BOB KARASHANI
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By EMMANUEL ONYANGO
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Turkish construction company Yapi Merkezi has reported a $1.8 billion gap in funding for Tanzania’s flagship standard gauge railway project as it continues to facilitate Dodoma’s search for funding for the project across Europe.
Yapi Merkezi Vice-Chairperson Erdem Arioglu, who recently led Finance Minister Mwigulu Nchemba and a government delegation to Spain, Sweden and Poland to seek funding for the project, told The EastAfrican that the fundraising drive was a follow-up on various commitments totalling $2.2 billion towards the $10.4 billion project.
He denied that Yapi led the mission as they explored a Plan B — alternative financing to cover its own reported cash flow problems — but did so in their capacity as main contractor for the first four phases of the project.
He said about $1.8 billion was being sought to finance Lots 3 and 4 of the projects while $1.5 billion had already been secured for Lots 1 and 2 and $400 million for Lots 3 and 4.
The four lots cover 1,223 kilometres from the port of Dar es Salaam to the Isaka dry port, from where SGR links will be extended to Mwanza and Kigoma on the coasts of Lake Victoria and Lake Tanganyika respectively.
Elaborating on the Turkish firm’s own role in the latest government fundraising trip across Europe Mr Arioglu said: “As the facilitator of the SGR project financing, we were part of the visiting group for financing discussions that took place in Spain, Poland and Sweden. We participated in the meetings together with the Tanzanian governmental delegation to give support and assist both Tanzania… and the involved export credit agencies on the clarification of mainly technical issues.”
Mr Nchemba led the government delegation in the talks with officials of potential funders in the cited countries, which also covered bilateral cooperation in other sectors such as agriculture, poverty alleviation and trade.
Yapi Merkezi, in partnership with Portuguese firm Mota-Engil Africa, was initially in 2018 awarded Lots 1, 2 and 3 of the SGR project covering 1,090 kilometres from Dar es Salaam to Tabora, and in July 2022 entered into a separate $900 million agreement with Tanzania for the construction of Lot 4 from Tabora to Isaka (165 kilometres).
But in recent weeks the company has been involved in a widely publicised payment tug-of-war with its workers assigned to the project, which triggered fresh concerns over unforeseen project delays.
Asked about the current situation regarding the payment's standoff, Mr Arioglu said it involved just 10 percent of the total 15,000 workforce, being mainly Turkish personnel, and lasted a “very short period of time.”
“Currently, there is no problem,” he asserted.
Tanzania’s Finance Ministry spokesperson Benny Mwaipaja told The EastAfrican that Yapi Merkezi’s financial situation was “really none of our business” and the European tour was aimed at “looking for funding, not contractors.”
“It is difficult for the government to comment on the company’s internal issues because by contract they are the (railway) builders and our job is merely to pay them in accordance with work done,” Mr Mwaipaja said.
The ministry has remained non-committal on the presence of Yapi Merkezi representatives in Mr Nchemba’s entourage to Europe, avoiding confirmation or denial.
When asked over the phone to clarify directly about that and other matters related to the trip, Mr Nchemba quietly listened all the way through then told our reporter that he had dialled a “wrong number” and hung up.
Another senior finance ministry official, who was also part of the government delegation, told The EastAfrican that he “wasn’t sure” if there was a Yapi Merkezi representative on the team.
But Mr Arioglu named Standard Chartered as the lead arranging bank mandated to “close” the SGR project financing and said Export Credit Agencies in “several” European countries were also expected to take part in the financial structure.
On timelines for each of the four project lots that Yapi Merkezi is handling, he said Lots 1 and 2 were expected to be completed by early next year and Lots 3 and 4 in early 2026.
The lots, by order of number, are at 98, 95, 67 and 17 percent completion status respectively, according to official reports.
Lot 5 of the project, covering 234 kilometres from Isaka to Mwanza and being handled by two Chinese firms, China Civil Engineering Construction and China Railway Construction Corporation, has reportedly reached 36 percent completion.
The African Development Bank (AfDB) has pledged $3.05 billion towards sponsoring the link from Tabora to Kigoma (Lot 6) and another planned stretch from Uvinza to Malagarasi to speed up the DRC connections (Lot 7).
Aside from the funding issue, Mr Arioglu cited other challenges that have caused “unexpected” delays in completing Yapi Merkezi’s slice of the project as “disruptive effects” of the Covid-19 pandemic and Russia-Ukraine war on supplies of project materials and “extensive” rainfall in some areas along the railway track.
“Environmental and Social Studies are also taking some time which is a requirement of the Project Finance Package,” he said.
Once completed and fully operational, the Tanzanian SGR is expected to build stronger regional trade ties via the Central Corridor by significantly reducing cargo transportation costs and times between Dar es Salaam and Burundi, Rwanda and the Democratic Republic of Congo.
Costs are projected to drop from up to $15,000 to about $4,000 per tonne and travel times from up to 30 days by road to 36 hours maximum by rail.
Asked about Yapi Merkezi’s envisaged Uganda SGR project, Mr Arioglu said discussions with Ugandan authorities were “at an advanced stage for a potential EPC + F contract in relation to the Malaba–Kampala section.”
“We are hoping to sign before the end of the year. The company is also working on the bankable feasibility and the design of the Kampala–Kasese section under an exclusive Memorandum of Understanding with the Ugandan Ministry of Transport,” Mr Arioglu said.
Turkey contractor confirms $1.8bn gap in funding Tanzania SGR
Once complete and fully operational, the rail will uplift Central Corridor’s status by reducing costs of cargo transport to the Great Lakes.
www.theeastafrican.co.ke
Geza Ulole
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Geza Ulole
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China's Belt and Road Initiative: Kenya and a railway to nowhere
- Published
7 hours ago
- Published
By Anne Soy
Senior Africa correspondent
The first section of Kenya's Chinese-built railway was opened with much fanfare in 2017 - but two years later work on the tracks stopped in the middle of the country and the master plan of linking it to other landlocked countries in East Africa seems to have derailed.
This means the project is not bringing as much money as was hoped at this stage, while Kenya is left servicing loans totalling around $4.7bn (£3.9bn), mainly borrowed from Chinese banks.
Yet it is hard to believe that Kenya's Standard Gauge Railway (SGR) is not a success when passengers disgorge from a packed train of around 12 carriages at the Syokimau railway terminus in the capital, Nairobi - the last service of the day.
They have travelled non-stop from the port city of Mombasa, 470km (290 miles) away on the Indian Ocean.
"It's great," 53-year-old commuter Pauline Echesa told me. The four-and-a-half hour journey gives her the bonus of watching wildlife along the way as the railway cuts through national parks, she says.
Image caption,
Some passengers can enjoy the wildlife on the Madaraka Express, which passes through national parks
A 30-year-old commuter found the experience a little more exhausting, saying the seats were not that comfortable but the journey saved her money compared to other ways travelling up from the coast.
There is no doubt the passenger side of the business is doing well and is fully booked, but it cannot pay back the loans on its own - and it was never meant to do so.
This burden falls to the cargo side of the business - bringing inland the containers that arrive at Mombasa port. It was intended that they would reach Uganda, Rwanda and the Democratic Republic of Congo.
The problem is that they can go only go as far as the Kenyan town of Naivasha - 120km from Nairobi but still far from the Ugandan border - on the SGR. Most of the freight trains then return to Mombasa empty, a huge loss of potential income.
"It will be more productive for us to continue with the project," Kenya's Transport Cabinet Secretary Kipchumba Murkomen told the BBC. "But the financing part is actually our challenge."
He says the government would be exploring options for funding the construction of the remaining portion of the railway during the upcoming Belt and Road Summit in China.
Launched in 2013, China's massive Belt and Road Initiative (BRI) has stretched across the globe and noticeably changed the landscape of infrastructure across Africa.
But its future is a matter of debate now as China continues to scale down funding and African countries face the reality of growing debt that in some cases threatens to destabilise their economies.
American think-tank the Council on Foreign Relations argues that some BRI investments have involved opaque bidding processes and required use of Chinese firms leading to inflated costs which have in some cases resulted in the cancelation of projects and a political backlash.
Internal issues that have affected the Chinese economy have also led to hugely diminished funding, says Nigeria's former Deputy Central Bank Governor, Kingsley Moghalu.
"The funding levels in the past couple of years have not been more than $2bn across the continent," he says - down, he estimates, from between $10bn and $20bn a decade ago.
Kenya's SGR is one of those to have suffered.
Image caption,
Kenya is hoping to find backing to build the SGR line to the Ugandan border at the Belt and Road Summit in China
But Mr Murkomen says Kenya is open to options: "We have private sector players in China who have said they are willing to put their own resources as long as we can have a conversation about how they'll recoup their finances."
One could be a grace period to allow the country to first service the loans taken to finance the sections of the railway that are complete, he explains.
An admission that the government is seeking more funding may not sit well with many in the country who already reeling from tax hikes introduced by President William Ruto since he came into office a year ago.
Kenyans are concerned that debt repayments are exerting significant pressure on the country's economy.
Government figures from the end of June 2022 showed that China was Kenya's third biggest external creditor - accounting for 19.4% of the country's debt.
"Right now, the debt profile of the country is quite heavy," says Kenyan economist Ken Gichinga, explaining that next June is when Kenya must repay a $2bn Eurobond.
"And there is also a feeling that not all that money went to building the railway," says Mr Gichinga.
The opacity in the deals countries like Kenya have signed with China is a matter of concern to their own citizens as well as critics abroad.
The Council on Foreign Relations assessment notes that loan terms are rarely made public and "because China refused to join the Paris Club of major official creditors", Chinese banks are under no pressure to cap lending rates or share information.
This, it concludes, means the risks for both the US and recipient countries "considerably outweighed its benefits".
Image caption,
Critics are concerned that the details of China's loans are rarely publicly disclosed
For Kenya's railway to reap the benefits that were envisioned at its inception, it needs to go transnational.
"Uganda really needs to also be onboard," argues Mr Gichinga.
But that ambition looks shaky.
The original East Africa Transport Master Plan, proposed by the East Africa Community around two decades ago, wanted two routes into landlocked countries from the coast - one coming from Kenya, known as the northern corridor, and another from Tanzania, dubbed the central corridor. It then had connections to South Sudan and DR Congo.
However Uganda may decide to push its business towards Tanzania. Its railway project has cost way less to build and offers higher speeds as the line is electrified.
Former Tanzanian President John Magufuli tore up the deal that had been signed by his predecessor with China to build the railway and chose to get funding instead from Turkey and Portugal to finance the first leg of the project.
Tanzania also appears on track to connect to Rwanda, Burundi and DR Congo - with China coming onboard in latter sections.
Mr Moghalu argues that, like Tanzania, countries on the continent "should be drivers of their own destiny".
"African countries need a mental repositioning and not feel like an abused spouse that they should be grateful to China because their former spouse, the West, did not treat them well."
Western countries have recently been trying to counter BRI, including US President Joe Biden's Build Back Better World Initiative, launched in 2021 in collaboration with G7 economies. But there is general acknowledgement that China still can offer more in terms of long-term development.
For the Nairobi-Mombasa commuters, such investments for the country's future are definitely worthwhile.
"Let us sacrifice to pay the debt and get more for such projects," Ms Echesa told the BBC.
The Kenyan government will be hoping it can convince China, and its banks, that the SGR railway will be profitable if it gets to the border and beyond.
China's Belt and Road Initiative: Kenya and a railway to nowhere
A $5bn transport project, funded by Chinese loans, is in danger of becoming a white elephant.
www.bbc.com
Geza Ulole
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New partnership to deliver design studies for Tanzania Standard Gauge Rail Project
May 4, 2023 – 9:27 amDB Engineering & Consulting partners with Linxon to deliver design studies for Tanzania’s Standard Gauge Rail (SGR) project. The SGR is a crucial infrastructure project that will link Tanzania to neighboring countries, with faster and more efficient transportation of goods and people.
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DB E.C.O. Group
DB E.C.O. GroupTorgauer Strasse 12-15
10829 Berlin
Germany
DB Engineering & Consulting (DB E&C), part of DB E.C.O. Group, has partnered up with Linxon to deliver design studies for Lot-3 and Lot-4 of the Tanzania Standard Gauge Rail (SGR) project, which aims to provide safe, reliable, and optimum transportation solutions for the undertaking. The main contracts for Lots 3 and 4, which will run from Makutopora to Tabora and from Tabora to Isaka, have been awarded to the Turkish company Yapi Merkezi. The SGR will link the port of Dar es Salaam to the port of Mwanza in northern Tanzania. It will be operated by the Tanzania Railway Corporation, a state-owned railroad company that operates the Central Railway to Kigoma and the railroad line to Arusha as its main lines.
DB E&C’s Design Centers support the company in its mission to offer technically sophisticated, customized infrastructure, mobility, and transport solutions for railways around the world. Design Centre India offers railway system design services such as track and alignment, traction power, overhead catenary systems, telecommunication, signaling systems, and system integration. In the SGR project, the Design Center is conducting train operation and traction power simulation studies. The company is excited to be contributing its expertise to this important infrastructure project in Tanzania. “The partnership with various global EPC players, such as Linxon, will provide integrated solutions in power infrastructure and all other rail systems,” according to Mr. Eskandar Jahany, Director of DB E&C´s Design Centre in India.
East African Railway Master Plan and Tanzania SGR
The SGR is part of the East African Railway Master Plan and is a crucial infrastructure project for Tanzania. The project is divided into five phases: Phase 1 was completed in April 2022 and Phase 2 is now up and running. Once completed, the SGR will link the country to the neighboring states of Rwanda, Uganda, Burundi and the Democratic Republic of Congo (DRC). The 1,800 km railway line will replace the existing meter-gauge railway system and accommodate passenger trains traveling at 160 kilometers per hour and cargo trains traveling at 120 kilometers per hour.Lot-1 has already been delivered by Yapi, and the company is in the process of delivering Lot-2. DB E&C and Linxon will deliver design studies for Lot-3 and Lot-4, which will involve providing technical solutions for power infrastructure, rail systems, and all other associated systems. The objective is to provide a safe, reliable, and optimum transportation solution for Tanzania SGR.
Partnership with Linxon and the future of Tanzania SGR
DB E&C’s partnership with Linxon for Tanzania SGR is a significant milestone for the project. The technical expertise of both companies will be instrumental in delivering an integrated solution for the project.Linxon is a renowned global engineering company building infrastructure to power the world with carbon-free technology by offering turnkey solutions in the areas of substations for power transmission, renewable energy, and transportation. The partnership will ensure that the design studies for Lot-3 and Lot-4 are carried out efficiently and that the final outcome will be a high-quality infrastructure project that meets the needs of Tanzania SGR.
The SGR is expected to transform the transportation sector in Tanzania and neighboring countries, with faster and more efficient transportation of goods and people. The new railway line will also help to reduce transportation costs, thereby boosting trade and economic growth. The project will provide employment opportunities and contribute to the development of local communities.
Design studies for Tanzania Standard Gauge Rail Project
DB E.C.O. Group to deliver design studies for Tanzania Standard Gauge Rail Project. Learn more about it in our article!
Geza Ulole
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Geza Ulole
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Hii SGR ya Tanzania inavitu vingi sana kama hizi parallel infrastructure zinazokua undertaken na hizi kampuni sio kutandika reli tuu basi reli imeisha kama huko kaskazini 😁New partnership to deliver design studies for Tanzania Standard Gauge Rail Project
May 4, 2023 – 9:27 am
DB Engineering & Consulting partners with Linxon to deliver design studies for Tanzania’s Standard Gauge Rail (SGR) project. The SGR is a crucial infrastructure project that will link Tanzania to neighboring countries, with faster and more efficient transportation of goods and people.
1
Share
Contact
DB E.C.O. Group
DB E.C.O. Group
Torgauer Strasse 12-15
10829 Berlin
Germany
DB Engineering & Consulting (DB E&C), part of DB E.C.O. Group, has partnered up with Linxon to deliver design studies for Lot-3 and Lot-4 of the Tanzania Standard Gauge Rail (SGR) project, which aims to provide safe, reliable, and optimum transportation solutions for the undertaking. The main contracts for Lots 3 and 4, which will run from Makutopora to Tabora and from Tabora to Isaka, have been awarded to the Turkish company Yapi Merkezi. The SGR will link the port of Dar es Salaam to the port of Mwanza in northern Tanzania. It will be operated by the Tanzania Railway Corporation, a state-owned railroad company that operates the Central Railway to Kigoma and the railroad line to Arusha as its main lines.
DB E&C’s Design Centers support the company in its mission to offer technically sophisticated, customized infrastructure, mobility, and transport solutions for railways around the world. Design Centre India offers railway system design services such as track and alignment, traction power, overhead catenary systems, telecommunication, signaling systems, and system integration. In the SGR project, the Design Center is conducting train operation and traction power simulation studies. The company is excited to be contributing its expertise to this important infrastructure project in Tanzania. “The partnership with various global EPC players, such as Linxon, will provide integrated solutions in power infrastructure and all other rail systems,” according to Mr. Eskandar Jahany, Director of DB E&C´s Design Centre in India.
East African Railway Master Plan and Tanzania SGR
The SGR is part of the East African Railway Master Plan and is a crucial infrastructure project for Tanzania. The project is divided into five phases: Phase 1 was completed in April 2022 and Phase 2 is now up and running. Once completed, the SGR will link the country to the neighboring states of Rwanda, Uganda, Burundi and the Democratic Republic of Congo (DRC). The 1,800 km railway line will replace the existing meter-gauge railway system and accommodate passenger trains traveling at 160 kilometers per hour and cargo trains traveling at 120 kilometers per hour.
Lot-1 has already been delivered by Yapi, and the company is in the process of delivering Lot-2. DB E&C and Linxon will deliver design studies for Lot-3 and Lot-4, which will involve providing technical solutions for power infrastructure, rail systems, and all other associated systems. The objective is to provide a safe, reliable, and optimum transportation solution for Tanzania SGR.
Partnership with Linxon and the future of Tanzania SGR
DB E&C’s partnership with Linxon for Tanzania SGR is a significant milestone for the project. The technical expertise of both companies will be instrumental in delivering an integrated solution for the project.
Linxon is a renowned global engineering company building infrastructure to power the world with carbon-free technology by offering turnkey solutions in the areas of substations for power transmission, renewable energy, and transportation. The partnership will ensure that the design studies for Lot-3 and Lot-4 are carried out efficiently and that the final outcome will be a high-quality infrastructure project that meets the needs of Tanzania SGR.
The SGR is expected to transform the transportation sector in Tanzania and neighboring countries, with faster and more efficient transportation of goods and people. The new railway line will also help to reduce transportation costs, thereby boosting trade and economic growth. The project will provide employment opportunities and contribute to the development of local communities.
Design studies for Tanzania Standard Gauge Rail Project
DB E.C.O. Group to deliver design studies for Tanzania Standard Gauge Rail Project. Learn more about it in our article!db-eco.com
Magonjwa Mtambuka
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Na wewe utakufa lini?
Remark
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Mradi wa sgr umetafunwa pesa za ujenzi halafu wewe unajitoa akili na taarabu
Geza Ulole
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Wacha kujifanyia promo humu ndani pumbavu!
Magonjwa Mtambuka
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Hujajibu swali😁
Remark
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Sasa promo ipi iyo..? Au ulitaka tuandike vile vinavyokufurahisha na vya kusifu tu..? Mradi naskia umesimama sababu mkandarasi amepunwa na wahuni😆.. Hivi mwigulu alienda sweden kufanya nini..?