Tanzania says construction of China-funded port to start in 2015

Geza Ulole

JF-Expert Member
Oct 31, 2009

Geza Ulole

JF-Expert Member
Joined Oct 31, 2009
19,848 2,000
View attachment 196885
The Bagamoyo Master Plan

Construction of a Chinese-funded port and special economic zone in Tanzania worth at least $10 billion will start in July 2015, the president's office said in a statement on Monday, for the first time setting a start date for the delayed initiative.

Tanzania aims to build a huge port at Bagamoyo, 75 km (47 miles) north of commercial capital Dar es Salaam, the site of the country's main port, where shippers complain of congestion and inefficiencies.

A construction agreement for the port and associated zone was signed on Sunday and follows a framework deal signed last year. An official said a start date for building work had taken time to set because of other negotiations about infrastructure to link the port to national transport networks.

The planned Bagamoyo port, new investment in Dar es Salaam and other spending on roads and railways are part of Tanzania's efforts to become a transport hub that could challenge the dominance of Mombasa in neighbouring Kenya.

"The Tanzanian government signed a memorandum of understanding with two major international institutions ... to develop the Bagamoyo economic zone," Tanzania's presidency said in a statement, adding construction would start on July 1 next year. Tanzania said it signed the infrastructure development agreement with port developer China Merchant Holding International (CMHI) and Oman's biggest sovereign wealth fund, the State General Reserve Fund (SGRF).

Tanzanian President Jakaya Kikwete witnessed the signing of the agreement in Shenzhen, southern China. A framework agreement between Tanzania and the Chinese port operator was signed when Chinese President Xi Jinping's visited the African nation in March 2013.

Li Jianhong, executive chairman of China Merchants Holdings, asked Tanzania's government at the signing of the construction contract to remove obstacles that have delayed implementation.

"We will do everything possible to ensure that this project takes off because it will bring enormous economic benefits to the entire country," President Kikwete said in the statement.

Separately, Tanzania and China on Oct. 24 signed deals with Chinese firms worth more than $1.7 billion, including one to build a satellite city to ease congestion in Dar es Salaam, deepening Beijing's ties with east Africa.

China, which built a railway linking Tanzania and Zambia in the 1960s and 1970s, is financing a $1.2 billion, 532 km (330 mile) natural gas pipeline. China's Sichuan Hongda Co Ltd in 2011 signed a $3 billion deal with Tanzania to mine coal and iron ore.





JF-Expert Member
Apr 6, 2012


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I had imagined this had started already until i saw the news today. July next year? How long will it take to complete?

Geza Ulole

JF-Expert Member
Oct 31, 2009

Geza Ulole

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Joined Oct 31, 2009
19,848 2,000
SGR tayari inachanja mbuga ya Tsavo. Jubilee kusema na kutenda. Oh Lord spare us the man eaters of Tsavo this time around.
show me 1 km of railway so far constructed!

Sunday, October 26, 2014
Chinese halted in Kenya

LAUNCHING: The euphoria late last year, when President Kenyatta and his wife, Margaret, ceremoniously screwed down the first nut and unveiled a plaque, has given way to an air of frustration as new unforeseen hurdles crop up. (COURTESY PHOTO)

NAIROBI, Kenya -It could be another false start for the much anticipated construction of the $3.8 billion Standard Gauge Railway (SGR) after the High Court ordered the Chinese contractor to halt .

This is until another case linked to the contract is heard and determined.

The latest hurdle involves locals staying along the track that the multi-billion, state of the art rail is expected to pass.

Local residents have vowed not to give up land for the construction until fully compensated by the government in a tussle that could further complicate the realization of the dream railway line.

The SGR project, that will initially connect Mombasa to Nairobi covering a distance of 406 kilometres, has been dogged by challenges with serious questions posed on the way the tendering process was conducted and the awarding of the million dollar contract to a Chinese company.

The Kenyan government appears to be bulldozing the project despite the resistance from the opposition coalition and local communities crying for compensation. Reports indicate that the government's compensation budget is way below what is required even as locals call for full payment against their parcels of land.

Kenya's National Land Commission is leading the process of land acquisition for the project with its chairman Mohammed Swazuri complaining that local politicians are inciting populations against the project.

"We are facing a serious challenge especially when you find that locals have been incited against the project. Some people want to be paid as much as Kshs10 million for an acre of land, which is just not practical. Kenyans must be told that this is a project that will benefit the whole country and region and therefore their cooperation is required," said Swazuri in an interview last week.

China Road and Bridge Corporation (CRBC) has been contracted to construct the controversial railway project. The company has already shipped in some 2000 Chinese expatriates for the task that will also see over 30,000 Kenyans engaged to offer various levels of labour and expertise.

The hurdles bedeviling the start of the railway last week prompted a meeting between President Uhuru Kenyatta and CRBC Vice President Chen Yun in an effort to get the project off the ground.

It is understood that during the meeting, the president assured the Chinese delegation that nothing would stop the construction of the railway and that all measures were being taken to address any concerns that would pose a threat to the project.

During the meeting Kenya's Transport Principal Secretary Nduva Muli said some 133km of land belonging to the Kenya Wildlife Service has been handed over to the contractor while an additional 142km is under the process of acquisition by the Nation Land Commission.

Chen assured President Kenyatta that his company will fully observe the Kenyan laws in ensuring that the environment and national parks – through which the railway line traverses – are preserved as work gets underway.

Concerns have been raised on the security of Kenyan wildlife in the expansive Tsavo National Park where the railway will pass through following high poaching incidents involving members of the Chinese community.

President Kenyatta expressed the need to expedite construction of the Standard Gauge Railway, saying it is one of the key infrastructural projects by the Jubilee Government that will transform the country.

He said the land issue must be resolved quickly to avoid delaying implementation of the project.

"We are committed to delivering this project for the benefit of the people of Kenya and the East African region.

We must hasten the pace of its implementation," President Kenyatta said.

According to Kenya Vision 2030, Kenyans are set to enjoy considerable cost savings in the next three to five years, once the construction of a Standard Gauge Railway – one of the most important vision 2030 projects – is completed.

The scheduled construction of the Ksh1.2 trillion Standard Gauge Railway (SGR) project will herald a major economic transformation arising from an expected slashing of commodity prices.

The new SGR line, which is a Vision 2030 Flagship project to be implemented by the Kenya Railways Corporation, will typically present an opportunity for the railways operator to run freight trains with 54 double stack flat wagons carrying 216 TEUs per trip.

By Humphrey Liloba, Sunday, October 26th, 2014


High Court halts construction of Standard Gauge Railway

By Faith Karanja
Updated Thursday, October 23rd 2014 at 15:00 GMT +3

President Uhuru Kenyatta and First Lady Margaret commissioning the construction of the Standard Gauge Railway in April 2014.

The High Court has stopped the construction of the Sh327 billion Standard Gauge Railway line.

The 14-day order issued by Justice Charles Kariuki also bars the compulsory acquisition of land and compensation of the residents, following a successful application filed by Kibwezi West MP Patrick Musimba.

The suspension order now bars the respondents-National Land Commission, Kenya Railways Corporation, the National Environment Management Authority and Attorney General Githu Muigai- from dealing with the project.

The court sitting in Machakos warned that any respondent who fails to honor the order within the 14-day period will be liable for contempt of court, an offence that is punishable by imprisonment in civil jail for a period not exceeding six months.

Musimba's lawyer Kethi Kilonzo had told the court, in his application, that Kibwezi residents were not compensated for land acquired for the SGR project launched by President Uhuru Kenyatta in April.

Ms Kilonzo added that the residents were not given notice before the take-over, as required by the law.

She told the court that there was need for the project to be subjected to public participation and environmental audit.

The court was told that Kenya Railways Corporation requires land to construct the railway and the NLC is in the process of acquiring land in Kibwezi West constituency of Makueni County.

The petitioner argued that the names of the residents affected did not appear in the National Gazette and in some instances the measurements of some parcel of land of the affected residents were wrong.

He claimed that they did not receive notice of the date and appointed time that officers measured and demarcated the parcels of lands or dwelling houses to be acquired which was in contravention of the law.

The residents also raised concern on whether they will receive any compensation as there was no civic education on the requirements of the lands act.

According to the Musimba, the respondents have failed to address oral and written petitions and complaint of the petitioners.

He claimed that the railway line will affect Schools, Market places, water points, Railway crossing and other social amenities.

"The process of the acquisition of Land to construct the Standard Gauge Railway is unconstitutional because no environmental Impact assessment has been undertaken or an assessment report issued, "he says.



JF-Expert Member
May 11, 2013


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Joined May 11, 2013
14,919 2,000
good news for us,bad news for them.

But kadoda11 it has always been claimed that this project has ensued and phase one is almost complete. Am surprised here that it has not even started and is slated to kick off next year in July. And are you aware of the dollar value you've committed yourselves to in this project, when I read somewhere that even your hospitals have run out of drugs.
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JF-Expert Member
Jan 6, 2011


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when I read somewhere that even your hospitals have run out of drugs.


Power games blamed for shortage of drugs:

Health officials have implicated power
struggles for the acute drug shortage in
county hospitals.

Many health institutions are short of drugs
because of delays in funds release from the
National Treasury and long procurement

Kapkatet District Hospital Medical
Superintendent Kenneth Sigilai, in Kericho,
said that before devolution of health
services, hospitals were allowed to place
orders to the Kenya Medical Supplies
Agency (Kemsa) and the National Treasury
made payments directly to it.

The institutions now have to pay Kemsa by
themselves using funds they receive from
county governments.

However, obtaining money from the county
governments takes time due to bureaucracy
and delay of disbursement from the
national government, Dr Sigilai says

In addition, the Public Finance Management
Act requires hospitals to bank all their
revenue with the county government,
unlike before when they kept the cash.

“We give our revenue and then we get stuck
since they release funds late.

“Even small monies necessary for attending
to emergencies are nowadays not there,” he
said.... mobile.nation.co.ke/counties/Drugs-shortage-caused-by-finds-delay/-/1950480/2505528/-/format/xhtml/-/12ef2i6z/-/index.html

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