{"id":18095,"date":"2020-11-05T18:49:23","date_gmt":"2020-11-05T18:49:23","guid":{"rendered":"https:\/\/www.africa-press.com\/tanzania\/?p=18095"},"modified":"2020-11-05T18:49:23","modified_gmt":"2020-11-05T18:49:23","slug":"multiple-benefits-of-sgr-project","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/tanzania\/community\/multiple-benefits-of-sgr-project","title":{"rendered":"MULTIPLE BENEFITS OF SGR PROJECT"},"content":{"rendered":"

AfricaPress-Tanzania:<\/strong> MEGA projects bring with them many benefits not only to the country, but also to the public at large. And interestingly, reaping the benefits of such development initiatives does not wait until their completion.<\/p>\n

With Tanzanian implementing the Standard Gauge Railway (SGR) project, a lot of opportuni – ties have been created, and these range from employment, increasing the market for locally made construction materials and several other services offered by local companies.<\/p>\n

Revelations were made recently that the construction of the SGR project has multi-effects to socio-economic development. According to the Tanzania Railway Corporation (TRC), the ongoing construction of first phase of the SGR from Dar es Salaam to Morogoro has so far poured in 307 million US dollars (707.3bn\/-) into Tanzania\u2019s economy through local subcontractors, suppliers as well as service providers.<\/p>\n

The TRC further expects that over 2trl\/- will have been spent locally during the implementation of the project, which edges towards completion and thus beefing up the circulation of money in the country. Project Manager, Eng Machibya Masanja stated this when briefing permanent secretaries and their deputies who toured the construction site from Morogoro to Dar es Salaam recently. The ministries\u2019 accounting officers also visited the SGR Second Phase project from Morogoro to Dodoma.<\/p>\n

President John Magufuli has repeatedly emphasised on increasing local content in devel – opment projects implementation, by deploying local companies to undertake the tasks. His sentiment was always that foreign contractors have mainly been benefiting the economies of their countries, by importing raw materials from those countries as well as staff.
\nExplaining how the project pours money into the country, he said the project has subcontracted over 140 local contractors and suppliers on different contracts. \u201cThese locals have been paid for goods and services, thus enabling the money from the project to circulate within the country,\u201d he said.<\/p>\n

Apart from local subcontractors, the project required that labor ratio stands at 80 per cent locals and the remaining 20 per cent foreigners, the condition which has been complied.<\/p>\n

The Dar es Salaam-Morogoro SGR project has employed 8,303 workers, out of whom 7,063 are locals while 1,243 are foreigners. On the part of key personnel such as engineers, the project is supposed to have 20 per cent locals against 80 per cent foreigners. However, it has exceeded the limit since locals constitute 46.5 per cent.<\/p>\n

\u201cAccording to the contractor, the number of local key personnel is large because they were inspired after seeing that Tanzanians are trainable. It takes them a short period to train and make us understand,\u201d Eng Masanja noted. There are a number of people working part-time jobs in the construction of the SGR project. TRC Director General, Masanja Kadogosa said the country\u2019s economy has benefited from the project since a large part of the construction materials used is purchased from within the country.<\/p>\n

For instance, the project is expected to use 150,000 tonnes of iron and 9.2 million cement bags from local manufacturers. However, he said low capacity in terms of required equipment for works was one of the challenges on the part of local subcontractors. \u201cIn order to build their capacity, they should unite in undertaking the works, and this is what we have been insisting to the Engineers Registration Board (ERB),\u201d he said.<\/p>\n

The Permanent Secretary in the Ministry of Constitution and legal Affairs, Prof Sifuni Mchome, who led the delegation of permanent secretaries and their deputies to visit the project, told the TRC that there should be strategic communication to inform the public over the development of the project, noting that the progress was amazing. Prof Mchome noted that the flagship project meant a lot to the development of the country, par – ticularly towards the industrial economy by 2025.<\/p>\n

\u201cThis means that taxes that the citizens pay are properly used for bringing development. The project proves that actions speak more volumes than words,\u201d he said.<\/p>\n

The modern railway is expect – ed to reduce the time of travel using the electric train, as opposed to the bus. Currently, road networks experience congestion because a huge chunk of cargo is transported via roads, but the SGR will come to relieve the roads since trains will be transporting the cargos.<\/p>\n

The project was very significant towards a journey of changing the country\u2019s economy. Upon this fact, the government recently secured loans amounting to 3.3trl\/- from 17 fi – nancial institutions under coordination of the Standard Chartered Tanzania to fund the project.<\/p>\n

\u201cOur national debt is still sustainable, and we must take loans because this railway project will change the economy of the country for the next generations, since the lifespan of this railway is 200 years,\u201d Finance and Planning Minister, Dr Philip Mpango stated.<\/p>\n

He called upon other local financial institutions to follow the example shown by 17 partners, saying there were still other projects that needed funding, such as the railway section from Mwanza to Shinyanga and Isaka. For the first time in over 50 years, Tanzania\u2019s transnational railway is being modernised. would speed up the country\u2019s industrialisation drive<\/p>\n","protected":false},"excerpt":{"rendered":"

AfricaPress-Tanzania: MEGA projects bring with them many benefits not only to the country, but also to the public at large. And interestingly, reaping the benefits of such development initiatives does not wait until their completion. With Tanzanian implementing the Standard Gauge Railway (SGR) project, a lot of opportuni – ties have been created, and these […]<\/p>\n","protected":false},"author":84,"featured_media":18066,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,3,8],"tags":[863,530],"class_list":["post-18095","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-community","category-homepage-english","tag-sgr","tag-trc"],"yoast_head":"\nMULTIPLE BENEFITS OF SGR PROJECT - Tanzania<\/title>\n<meta name=\"description\" content=\"MEGA projects bring with them many benefits not only to the country, but also to the public at large. 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