Improving Infrastructure in Tanzania
With an annual estimated income of $1,500 per person, Tanzania is one of the poorest countries in the world.
To support Tanzania and to help improve economic growth, in 2008 the Millennium Challenge Corporation (MCC) awarded the largest MCC Compact in the world, worth $698 million. After conducting an analysis on the constraints to economic growth in Tanzania, the MCC determined that improving the infrastructure of the transportation, energy and water sectors would be the most effective means to reduce poverty in the country. The lack of reliable infrastructure in these sectors is one of the primary obstacles hindering local and foreign investments. The infrastructure projects currently being implemented by the MCC will propel economic growth by improving transport for farming, strengthening the communications infrastructure, and growing tourism. Alfonso Lenhardt, the US Ambassador to Tanzania, stated "the infrastructure projects that you are doing will contribute to the health, prosperity and safety for all people in Tanzania."
"The choice of Tanzania's Compact to invest in infrastructure improvement was based on the fact that reliable infrastructure is fundamental to reducing poverty through economic growth."
President Jakaya Kikwete, President of Tanzania
Crown Agents work on the MCC - Tanzania Compact
To assist the Government of Tanzania and the MCC, Crown Agents USA (CA-USA) has been designated as the Procurement Agent on the energy and water projects and as Procurement Advisor on the transportation projects. In this role, CA-USA has managed the procurement of a broad range of goods and services, directed procurement planning and proposal evaluation and managed contract administration. By standardising procurement processes and developing a comprehensive Procurement Training curriculum, CA-USA provides capacity enhancement and on-going support and mentoring to the implementing staff. These activities will result in skills and knowledge transfer and enable the government entities to manage projects long after the completion of the Compact.
In the transport sector, the CA-USA Advisory team has been assisting TANROADS, the Procurement Agents for selected road projects. The state of many roads throughout the country is very poor and the roads selected for improvement will increase commerce and improve the welfare of Tanzanians by helping to connect communities with markets, schools, and health clinics. Upgrading 600 kilometres of three major roads in the Rukwa region will connect Rukwa with neighbouring regions and the border countries of Zambia, Malawi and the Democratic Republic of Congo. The construction of a 65km road will benefit approximately 6.5 million people of Tanga, Coast and Dar es Salaam regions by enabling trade with Tanzania to Kenya. Selected rural roads on Pemba Island in Zanzibar will also be repaired.
Energy blackouts, crumbling infrastructure and recent changes in fishing laws have made life for the inhabitants of Mafia Island more difficult. In order to stimulate tourism, the MCC has commissioned the rehabilitation of the air strip on the island and the construction of a passengers' building. This will stimulate local business development through tourism and the fish industry, generating additional revenue for the government. New investors are currently active in the hotel, the Marine park and reserve areas.
CA-USA has served as a Procurement Agent and assisted the Government of Tanzania in the procurement of goods and services for projects in the energy and water sectors. As Procurement Agent, CA-USA has been working on a number of complex 'Design and Build' works contracts aimed at improving the energy capacity of Tanzania. The MCC Energy sector programme will improve access and reliability of electricity through the expansion and construction of power distribution and transmission lines in six regions in mainland Tanzania and Zanzibar. These regions will benefit from the installation of 24 power sub-stations, which have been designed and manufactured for this project. In addition to increased economic activity, some businesses and communities will receive electricity for the first time.
Zanzibar, which has long been subjected to random power cuts that dramatically impact the economy and social welfare, will also benefit from the manufacture and installation of a 100MW submarine power cable. This power cable will link Zanzibar to mainland Tanzania and help to ensure a steady supply of electricity, a vital component for schools, hospital, and the pumps that provide clean drinking water.
"A sound and good commercial relationship between MCA-Tanzania and CA-USA has helped positively the implementation of the Tanzania program in terms of efficiency and speed....we have been able to achieve more than 90% of all projected contracts to be signed with various Suppliers, Contractors and service providers."
Bernard Mchomvu, COO, MCA-Tanzania
The projects in the water sector will increase the amount and availability of potable water for both domestic and commercial use. Having increased access to clean, safe drinking water will enable people to invest more time in other productive activities, such as work and education. Lower Ruvu and the Dar es Salaam Water & Sewerage plant will benefit from expanded capacity and improved system efficiencies. The Morogoro region will benefit from a project that will enhance the water supply and improve capacity by 33%, increasing the amount of available water to 33 million liters per day.
These projects were designed to be completed within a defined timeframe. The MCC Tanzania Compact will close in September, 2013.
Crown Agents has assisted the MCC on ten different procurement and procurement advisory projects in Asia, Africa and Latin America. With over 170 years' experience, Crown Agents is recognised internationally as a leading provider of procurement consultancy and services. By combining the tools and the expertise to facilitate on-going improvement in procurement policies, rules, systems and workforces, we deliver positive change and long-lasting value.