Africa Growing Together Fund provides a $44.29 million loan for Phase II of the Dar es Salaam Bus Rapid Transit System Project (Linked to Umbrella Project ID#36104)

On May 22, 2014, African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Project ID#36104). The purpose of this $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024. The AGTF is sponsored by the PBOC and the administered by AfDB. Then, on October 23, 2015, AGTF signed an $44,290,563 loan agreement [ID#5050130000102] with the Government of Tanzania for Phase II of the Dar es Salaam Bus Rapid Transit System Project. On the same day, the African Development Bank (AfDB) issued a $97,420,000 loan [ID#2000130014182] to the Government of Tanzania for the same project. The AGTF loan carried the following terms: 20 year maturity, 5 year grace period, and an interest rate of 6-month LIBOR plus a 0.6% margin. As of May 2019, AGTF has disbursed $1,373,632.00. The loan proceeds were to be used to finance (1) a design contract [ID#DART/CO1/20115] between Tanzania National Roads Agency (TANROADS) and M/S BOTEK Bosphorus Technical Consulting Corporation of Turkey in Association with M/S Apex Engineering Co. Ltd of Tanzania (As sub-consultant), which was signed on February 25, 2017 and commenced on March 27, 2017; (2) a design and supervision contract [ID#TRD/HQ/1039/2016/17] between Tanzania National Roads Agency (TANROADS) and M/S Inter-Consult, which was signed on February 25, 2017 and commenced on March 24, 2017; (3) a (Lot 1) commercial contract [ID#AE/001/2017-18/DSM/W/98] between Tanzania National Roads Agency (TANROADS) and Sinohydro Corporation Ltd, which was signed on December 10, 2018 and commenced on May 6, 2019; (4) and a (Lot 2) commercial contract [ID#TRD/HQ/1009/2018/19] between Tanzania National Roads Agency (TANROADS) and China Civil Engineering Construction Corporation (CCECC), which was signed on August 13, 2018 and commenced on March 1, 2019. Phase 2 of the Dar es Salaam Bus Rapid Transit (BRT) Project involves the construction of infrastructure that includes 20.3 km of exclusive BRT lanes and Non Motorised Transport (NMT) facilities along Kilwa Road corridor and part of Kawawa Road. The project corridor traverses from Mbagala Area in Temeke District to the Central Business District where it connects with Phase 1 of the BRT system at the Kariakoo hub. In addition to the construction of road infrastructure, the project involves the construction of 29 bus stations, one bus depot at Mbagala-Rangitatu and two bus terminals at Mbagala-Rangitatu and Kariakoo-Gerezani. Moreover, two flyovers; one at Nyerere Road/Chang’ombe Road junction and second at Nelson Mandela/Kilwa road junction are to be constructed. Non-Motorized Transport facilities and five feeder stations at Dar es Salaam University College of Education (DUCE), Mtoni Kwa Azizi Ali, Mbagala-Rangitatu, Zakhiem and Mtoni-Kijichi are also to be provided. A pedestrian overpass bridge will be constructed at Mbagala area. Alongside infrastructure development, feeders’ stations for Phase 2 are identified at Charambe and Kongowe, all being connected to Mbagala Rangitatu, Mtoni kwa Azizi Alli that connects North and South Tandika, Mtoni, Temeke and Buza while Kijichi Misheni connects Misheni, Kijichi and Mbagala Kuu. Another feeder route is the DUCE-Chang’ombe which connects Temeke, Kigamboni and Tandika area. The project is expected to benefit an estimated population of at least 1.2 million representing some 25% of the Dar es Salaam City’s population. Other beneficiaries include users of major city connecting arterial roads including Mandela and Nyerere Roads. Key outcomes include improved accessibility to the larger populations of Dar es Salaam particularly Temeke Municipality, reduced travel time to public transport commuters, improved air quality to travelers and residents living close to the roadway, improved property values arising from reduced congestion, and improved business environment for traders arising from improved accessibility, new market facilities and improved sanitation. The disadvantaged women, school children, handicapped and elderly are also poised to benefit from the new BRT system. At the moment, they cannot manage to comfortably use the existing public transport especially during peak hours. Finally, employment will be created during both the construction phase and the operations phases of the proposed BRT line. The provision of BRT system is expected to directly enhance and improve the traffic circulation and eliminate bottlenecks to traffic flow to various economic activity centers such as the industrial zones, and the vast populous residential areas of Temeke Municipality. The project is therefore expected to impact positively on the informal and formal businesses by providing them with improved accessibility and enhanced roadside air quality. It is further estimated that by improving the existing road and public transport system, the annual vehicular GHG emission rates in tones would drop by at least 60% due to improved average traffic operating speeds along the project corridor and particularly by the use large modern buses that uses modern technology and cleaner fuels in the BRT system. The originally expected project implementation start date was April 27, 2016 and the originally expected project completion date was December 31, 2020. The project ultimately commenced on March 1, 2019. It suffered significant delays in procurement due to lengthy design review process. As of September 2019, all land acquisition activities were completed and construction activities were underway.

Additional details

1. The all-in interest rate (1.128%) was calculated by adding an 0.6% margin to the average 6-month LIBOR rate in October 2015 (0.528%). 2. The margin of 0.6% is calculated by adding the Funding Cost Margin (unknown) to the Lending Margin (0.6%). 3. The AfDB project identification number is P-TZ-DB0-021. 4. The total cost of the project net of taxes is USD 159.32m (TZS 285.1 billion). The project is jointly financed by the Bank Group (61.1%), Africa Growing Together Fund (AGTF) (27.8%) and the Government of Tanzania (11.1%). 5. The entire Phase 2 trunk system of 20.3 kilometers will be built along the middle of existing roads. A 9m wide median along Kilwa road is currently reserved for BRT lanes, terminals and stations. Throughout the entire corridor, there will be tree-shaded bicycle and pedestrian ways on both sides of the road. The average distance between bus stops will be 500 meters and system users will be encouraged to either walk or bicycle to the bus stops (privately operated bicycle parking facilities are planned at each bus stop). Ninety seven (97) articulated trunk buses with a capacity of 140 passengers will provide both normal (stopping at all stations) and express services (stopping only at connector stations). Additionally, a system of 105 feeder buses with a capacity of 60 passengers will transport passengers to the trunk system through feeder stations. Trunk buses will be accessed at the stations by the passengers at level which will enhance system capacity and comfort. The system is expected to operate for 18 hours from 5am to 11 pm. The bus fleet which will be under separate financing arrangement and operated by a Private Bus Operator and is expected to serve 495,000 passenger trips per day of which approximately 50% are women and 150 million trips annually. The project involves the construction of BRT infrastructure along Kilwa Road from Mbagala to CBD (14.9 km), and Changombe Road to Kawawa Road (5.4 km) connecting to Phase 1 line at Magomeni area. The construction includes Terminals, Depots, Feeder Stations, NMT facilities and flyovers at Nyerere/Kawawa and Mandela/Kilwa roads intersection. The works on Kilwa road involve constructing two BRT lanes in the right of way provided in the center of existing mixed traffic lanes with service roads, bicycle lanes and pedestrian walkways. On the Changombe Road, Gereza street and Bandari street sections, the existing two lane roadways will be expanded to provide two BRT lanes in the center with two outside mixed traffic lanes plus service roads, pedestrian walkways and bicycle lanes, while the existing 4-lane roadway on Kawawa road will be expanded to accommodate two BRT Lanes in the center with two mixed traffic lanes on either side.

Number of official sources

10

Number of total sources

10