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PRESS RELEASE

Additional Financing for Tanzania’s Bus Rapid Transit System to benefit 300,000 Commuters and Create 80,000 Jobs

January 15, 2013

WASHINGTON, January 15, 2012 – The World Bank Board of Executive Directors has today approved US$100 million as additional financing for completion of the Bus Rapid Transit (BRT) system in Dar es Salaam. The initiative will save the economy billions of shillings lost daily in the jams and provide relief to at least 300,000 commuters.

The additional $100 million from the Bank’s International Development Association will bring the total cost of the Second Central Transport Corridor Project (CTCP2 to $290 million).

“Dar es Salaam is growing rapidly”, said Philippe Dongier, World Bank’s Country Director for Tanzania, Uganda and Burundi. “Traffic jams are a significant problem for the economy. They reduce productivity by wasting the time of road users; they threaten future growth prospects for the city and the country, and they pollute the environment.”

The BRT is implemented by the Dar es Salaam Rapid Transport (DART) agency and is aligned to Tanzania’s development strategy which underscores the need for improved transport infrastructure to achieve social and economic objectives. The combined works on the project including the construction of the road works, bus-passenger terminal buildings, feeder stations, utility power relocation will provide some 80,000 jobs by completion in 2015.

The BRT system will be operated by a US$40.9 million public private partnership (PPP) arrangement with two private bus operators, one fare collector and a fund manager. The modern system will provide rapid boarding and dedicated right of way for 148 buses with a capacity of 140 passengers each, providing both normal and express services. Additionally, another 100 buses with a capacity of 60 passengers will transport passengers to the trunk system through feeder stations. The entire 20.9 kilometers will be provided with tree-shaded bicycle and pedestrian ways on both sides of the road with an average distance of 500 meters between bus stops.

“We are happy with the momentum of implementation of the BRT infrastructure as all works contracts have been awarded and the construction is proceeding,” said Yonas Mchomvu, the World Bank’s Transport Specialist in Tanzania.

DART in collaboration with the Surface and Marine Transport Authority (SUMATRA) and the Daladala Owners Association (DARCOBOA) are currently mobilizing local transport operators to form companies that are expected to participate in the bidding for the BRT bus operation through joint venture agreements and/or operation contracts with experienced international operators. Further, preferential access to shares in the BRT bus operation will be given to the 1,800 daladalas (commuter mini-buses) that are expected to be displaced by the BRT operation.

 

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PRESS RELEASE NO:
2013/192/AFR