1. Introduction
In the framework of the evaluation of the EC interventions in the transport sector in third countries a field mission to Tanzania was carried out from 9 to 20 June 2003.
The work programme included visits to around 30 institutions and stakeholder organisations within the transport sector. A list of people met is available in Annex 1. The programme also included a 3-days field trip to the Southern Iringa region and a short inspection visit to the Wazo Hill – Bagamoyo road.
The evaluation team consisted of:
- Patrick Chaussepied, Team Leader;
- Jorgen Kristiansen, Senior Transport Sector Specialist;
- Jacek Walendowski, Junior Evaluation Specialist;
- Immanuel N. Kimambo, Local Transport Sector Specialist.
The present document reports on this mission. In accordance with the methodology developed in the first phase of the evaluation, and accepted by the evaluation unit of EuropeAid, this report is strictly factual. Its purpose is to present the information collected during the field mission, and not to provide an evaluation of EC interventions in the transport sector in Tanzania.
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2. The transport sector
The following chapter provides a short description of some main features of the transport sector in Tanzania. The description includes a few statistical key figures, the institutional set-up with an emphasis on the roads sub-sector, the Government of Tanzania's (GoT’s) transport policies and programmes, and the donor interventions in the transport sector.
2.1 Main features of the transport sector
The following map indicates the major urban centres, ports, trunk roads, railway lines, and regional boundaries.
Figure: Overview map of Tanzania (Source: http://www.lib.utexas.edu/maps) Report of the mission to Tanzania – October 2003
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2.1.1 Road transport
Road transport is the dominant mode of transport in Tanzania as it represents approximately 70% of freight transport and 90% of passenger transport (Source: Country Strategy Paper and National Indicative Programme 2001-2007).
Tanzania comprises a classified road network totalling about 57,000 km. The density of classified roads is about 60 km/1,000 km².
The lengths of paved and unpaved roads and the distribution according to the official road classification - i.e. trunk roads/national roads, regional roads, district roads, urban roads, and unclassified roads (feeder roads) - are presented in the table below. Regional roads, district roads and feeder roads are also called “rural roads”.
Length (Km)
Road class
Paved
Unpaved
Total
National/Trunk Roads
3,830
6,470
10,300
Regional Roads
100
24,600
24,700
District Roads
30
19,970
20,000
Urban Roads
470
1,980
2,450
Unclassified (feeder) Roads
0
27,550
27,550
Total
4,430
80,570
85,000
(Source: Ministry of Communications and Transport, 2003: Transport, communications and meteorology sector statistics)
Trunk roads and urban roads have the highest shares of paved roads representing 37% and 19%, respectively. Less than 1% of the regional and district roads are paved.
The table indicates that trunk roads and regional roads have a total length of 35,000 km, but the Tanzania National Roads Agency (TANROADS), which is in charge of maintaining this network, has records of 28,300 km only (i.e. 8,300 km trunk roads and 20,000 km regional roads). The overall extension of the trunk and regional road networks has not changed much since the 1970s.
According to recent statistics (Ministry of Communications and Transport, 2003), presently only 27% of the trunk roads and 7% of regional roads only are in good conditions. The situation of district and feeder roads is still worse with less than 10% of this network in good condition. The estimated conditions of the road network under TANROADS (as of March 2003) is presented in the following table:
Length (Km)
Good (%)
Fair (%)
Poor (%)
Trunk roads
27
29
44
Regional roads
7
41
52
(Source: Ministry of Communications and Transport, 2003: Transport, communications and meteorology sector statistics)
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There has been a growing trend in the number of annually reported road accidents from 1995 to 2001. A relatively high share of the accidents, i.e. about 40%, occurs in the Dar es Salaam urban area (NRSC interview, June 2003).
The number of road transport licenses issued to passenger and goods service vehicles declined from 1996 to 2001, but it has increased again in 2002. However, these figures do not reflect the growing individual car traffic in urban areas and on the rehabilitated parts of the trunk road network.
2.1.2 Rail transport
There are two railway networks, the Tanzania Railways Corporation (TRC) network that represents a total length of 2700 km, and the Tanzania-Zambia Railways (TAZARA) with a total length of 1860 km.
Most of the TRC network was constructed before the outbreak of World War I. The TAZARA railway line from Dar es Salaam to Zambia was constructed during the first half of the 1970s. The gauge (width) of the TRC rail infrastructure is 1.000 meter, against 1.067 meter for the TAZARA railway line. This implies separate rolling stocks and transhipment between the two networks at the Kidatu junction.
The table below presents the development of passenger transport from 1998 to 2002.
Year
TRC
passengers (‘000)
TAZARA passengers (‘000)
Total
(‘000)
1998
570
1,535
2,105
1999
615
1,422
2,037
2000
631
1,543
2,174
2001
728
1,541
2,269
2002
685
1,069
1,754
(Source: Ministry of Communications and Transport, 2002: Transport, communications and meteorology sector statistics.)
From 1998 to 2002, the number of passengers travelling by TRC increased by more than 100,000, whilst TAZARA experienced a sudden and drastic decline of 500,000 passengers from 2001 to 2002.
The recent decline of passengers traffic is partly explainable by an increased competition from road transport. Bus fares are cheaper than 1st class railway, and faster (7 hours from Dar es Salaam to Dodoma against 13 hours by train as the average train speed is only 30 km/h). To increase the speed, an upgrading of the railway infrastructure would be needed at some sections. Besides the buses are becoming increasingly comfortable. The only competitive advantage of the railways is the opportunity for passengers to bring in a large volume of luggage that would not be accepted by buses. Passenger services on the Dar es Salaam - Moshi line have been terminated, and passengers traffic is no longer profitable to the railway company on the Dar es Salaam – Dodoma section.
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Freight transport by the railways consists in both domestic and transit cargo. During 1998-2002, the share of domestic freight on the TRC network was 60-70% of the total figure, whilst TAZARA domestic freight fluctuated between 30% and 50% of the total figure. The domestic freight is less significant compared with road haulage, which remains the most dominant mode of transport.
The following table shows the development of freight transport from 1995 to 2002.
Year
TRC freight
('000 tons)
TAZARA freight
('000 tons)
Total freight ('000 tons)
1995
1,342
633
1,975
1996
1,244
663
1,907
1997
1,073
555
1,628
1998
955
632
1,587
1999
1,127
615
1,742
2000
1,165
634
1,799
2001
1,351
595
1,946
2002
1,446
552
1,998
(Source: Ministry of Communications and Transport, 2003: Transport, communications and meteorology sector statistics)
During the period 1995-1998, the TRC annual freight performance declined but the 1995-level was reached again in 2001. TAZARA experienced a drastic downturn from 1993 (1,240,000 tons) to 1994 (640,000 tons). From 1998 to 2001, the TAZARA freight performance declined only slightly and in terms of ton-km, there has been a modest increase.
The main commodities transported by railways are general cargo, fuel and cement. The categories of goods are exports of cotton, tobacco, maize, cement, coconut and imports of petrol, grain, machinery, transit of copper etc. Seasonal fluctuations of the freight traffic are not very high, although there is a peak in traffic during the crop season.
Both railway networks (TRC and TAZARA) are currently preparing for privatisation in the form of concessions.
In 1998, the TRC came under the GoT’s privatisation programme. The government has agreed on the principle of giving the operation of the railways on concession for 25 years. Preparations for privatisation of the TRC started in 2000. Consultants were recruited to examine the various options. They recommended a concession of the railway operations to a private operator. Infrastructure would remain state property. The concessionaire would bring in equipment (locomotives, wagons), manage the business and pay to the government a concession fee and a percentage of the revenues generated by the operations. Maintenance of the railway infrastructure will be ensured by the concessionaire whilst heavy repairs and network extension will be undertaken by the government.
The concession for TRC was tendered in 2002, but the tender was unsuccessful. It will be launched again with relaxed conditions and stronger government guarantees given to the concessionaire. GoT now insists that privatisation of operations should be completed by the end of 2004.
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TAZARA, the other Tanzanian railway line company, which is jointly owned by the GoT and the Government of Zambia, will also be privatised. The two governments have agreed on a move towards concession and are waiting for a World Bank mission to look into the issue. The World Bank is financing this preparatory phase and consultants will be recruited to analyse the various options and prepare the tendering documents. There is not yet any timetable for the privatisation process.
2.1.3 Inland waterways
There are a number of ferry ports and ferries serving passengers on Lake Victoria, Lake Tanganyika and Lake Nyaza. The annual number of passengers handled by the Marine Service Company (the Marine Division of Tanzania Railways Corporation) has been around 300,000 in recent years.
Freight transport by ferry takes place to some extent between Tanzania and Uganda/Burundi.
2.1.4 Maritime transport
The major seaports serving the Tanzania Mainland are situated at Dar es Salaam, Tanga and Mtwara.
Dar es Salaam is the dominating port. In 2001, the throughput was represented by about 4.5 million tons import and 1 million ton export. It was estimated that 80% of the import was destined to Tanzania and 60% of the export came from Tanzania. Zambia is the main transit exporter. Container transport via Dar es Salaam port has increased notably since 2000.
The freight handling activity level in each of the ports in Tanga and Mtwara has been around 10% or less of the freight volumes for Dar es Salaam port.
The Tanzania Harbours Authority operates the ports of Dar es Salaam, Tanga, and Mtwara, and the minor ports of Kilwa, Lindi and Mafia on the Indian Ocean. The ports in Dar es Salaam, Tanga and Mtwara are envisaged to be leased out to the private sector, but the GoT still has to approve the privatisation strategy.
2.1.5 Aviation
The three international airports in Tanzania are Dar es Salaam, Kilimanjaro and Zanzibar airports. In 2002, the annual throughput figure was 395,000 passengers in Dar es Salaam airport (mainly served by scheduled flights). The Kilimanjaro and Zanzibar airports each served about 100,000 passengers (including a relatively large share of non-scheduled flights).
There are also a number of domestic airports and airstrips, of which Mwanza airport is the largest in terms of passenger traffic volume.
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Aviation officials confirmed (TAA interview, June 2003) that air fares are much higher in Tanzania than in the neighbouring countries, with the result that tourist traffic to East Africa is diverted to Kenya.
The reforms that took place at the end of the 1990s’ included the establishment of the Tanzania Civil Aviation Authority (TCAA) in 1998 and of the Tanzania Airports Authority (TAA) in 1999 as GoT executive agencies. The intention of the GoT was to give more autonomy to all activities that can be carried out by an autonomous agency. These reforms within aviation were supported by the donor DFID.
Before the Tanzania Airports Authority (TAA) was established, there was a Department of Aerodromes in the Ministry of Transport. During some periods the airports were under the Division of Civil Aviation and during other periods under a separate department but airports have always been considered as a distinct entity.
The airports under TAA are presently considered for privatisation, including the Dar es Salaam airport. The container terminal at the Dar es Salaam International Airport has been privatised. The Kilimanjaro International Airport is already managed by a concessionaire, KADCO, which is a private company with the GoT having a 25 % share.
TAA does not receive subsidies from the government, except for the salaries of some staff members which are presently being paid by the government. The TAA has several public service obligations, notably to operate and maintain secondary airports that are not profitable. In fact, only Dar es Salaam Airport and Kilimanjaro Airport have enough traffic to cover their costs.
A main source of revenue of the TAA are the fees paid by the airline companies for landing and parking. 60% of this revenue goes to TAA, 30% to TCAA, and 10% to the Meteorology. The passengers service charge is currently shared with the government, but TAA hopes eventually to keep 100% of it.
The main responsibility of the Tanzania Civil Aviation Authority (TCAA) is the regulation of air traffic, in particular in relation to safety. TCAA inspects all operators of the sector including the airports. It oversees the safety and security measures in the airports, allocates routes to the airline companies, and assists the government to designate the companies that are authorised to operate outside Tanzania. A TCAA Act has been adopted in 2003, authorising TCAA to a fee on all aviation operators.
TCAA will remain a government regulatory body but will give up the provision of services. This has not yet been fully attained, as TCAA is still providing air navigation services (air traffic control), but the latter function could also be made autonomous. In the future a control body at the regional level (SADC) is envisaged to be in charge of air navigation services and control on the main (transit) routes. The airport approach and aerodrome operations will be carried out by the airports.
The national airline is Air Tanzania Corporation (ATC), a former state-owned company which is the main provider of domestic air travel linking all major towns in the country.
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The ATC has been partially privatised (49% owned by South Africa Airways). The airlines industry is now completely liberalised. In addition to Air Tanzania, there is another company, Precision Air, and several smaller companies, which struggle to survive, notably on the charter market. There are no subsidies paid (and possibly tendered) to companies for providing minimum transport services to regional airports.
2.2 Institutional set-up
Presently (June 2003), the governmental set-up of the transport sector in Tanzania consists in the following institutions:
Ministry of Works (MoW);
Ministry of Communications and Transport (MCT);
President’s Office for Regional Administration and Local Governments (PORALG).
The present separation between the MoW and MCT was introduced in October 1995. Before 1995, MoW and MCT were alternately merged into a single Ministry of Works, Communications and Transport (MWCT) or separated. Both ministries are located in Dar es Salaam. PORALG has its headquarters in Dodoma.
The split of responsibilities implies that MoW is in charge of the national and regional road networks, and PORALG shares with local authorities the responsibility for the district/municipal road networks. The responsibilities of MCT include road transport operations, the remaining transport sub-sectors and general transport policy issues. Water transport infrastructure at the Lakes is the responsibility of MoW but ferry operations on the Lakes belong to the MCT.
2.2.1 Ministry of Works (MoW)
In brief, the MoW is responsible for determining and maintaining the policy framework for the road infrastructure sub-sector and the functional boundaries within which the national roads agency operates (see about TANROADS below).
Based on recommendations presented in 1998 by a Joint GoT/Donor Working Group, the role of the MoW has been redefined. Following the institutional reform, notably the establishment of the new Road Fund and of the Tanzania National Roads Agency (TANROADS), the MoW is intended to focus on policy formulation, strategic planning, human resource development and regulatory issues. The MoW is presently undergoing a restructuring and is moving slowly (some would say reluctantly) towards this policy, planning and regulatory function. However, the MoW lacks key persons to drive the transition.
In accordance with the road sector reform, the road agency is in charge of all financial and technical issues related to road project management and implementation. The MoW is responsible for the general direction of TANROADS and the overall accountability to the Parliament. Furthermore, the Minister of Works shall be consulted by the Permanent
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Secretary of the MoW on matters relating to the strategic management of TANROADS, and by the Chief Executive of TANROADS on operational matters that could give rise to significant parliamentary concern. However, for the time being, the MoW is also doing road project management and implementation of several GoT and donor funded road projects as a contracting authority parallel to TANROADS. According to a written status of road sector reform (MoW, 2002), the implementation of special trunk road projects funded by the GoT (469 km) still has to be managed by the MoW.
2.2.2 Ministry of Communications and Transport (MCT)
The MCT is dealing with overall national transport policy issues. Thus the MCT is responsible for all aspects of policy formulation covering the transport sector as a whole and the broad strategic goals for the sector. The MCT is not involved in road infrastructure project implementation except if a policy issue is raised that belongs to its field of competence.
The responsibility of MCT includes road transport operations i.e. traffic on the roads. The labour division and split of responsibilities between the MCT and the MoW is still unclear when it comes to road transport policy issues, safety and intermodal transport.
Concerning a possible merge of MoW and MCT into one ministry, the view of TANROADS officials is that one ministry only would be appropriate but having two ministries is not considered a problem as long as a common policy is clearly stated and the two ministries complement each other. Co-ordinating meetings take place between the ministries from time to time.
2.2.3 President’s Office for Regional Administration and Local Government (PORALG)
Tanzania is subdivided into 21 administrative regions under the central government. The 121 districts and the municipalities are ruled by local governments. The Presidents’ Office for Regional Administration and Local Governments (PORALG) is responsible for assisting and supervising local authorities, notably for the management of the district, urban and feeder roads (about 50,000 km in total). PORALG has the status of a ministry and there is a minister appointed in the President’s Office. Often PORALG is referred to as the "Ministry for Regional Administration and Local Governments".
PORALG has to coordinate all local government authorities in the various sectors and is also responsible for the monitoring and use of resources. Between PORALG and the District Councils, the GoT has established an office of the Regional Administration Secretary (RAS) for each of Tanzania’s 21 regions. The regional secretary is normally responsible for 4 to 6 districts.
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2.2.4 The road sector reform process and institutions
Besides the three ministries mentioned above, the following institutions are of particular importance to the roads sub-sector:
The Road Fund and Road Fund Board (RFB).
Tanzania National Roads Agency (TANROADS).
The National Road Safety Council (NRSC).
The ongoing road sector reform process is based on the SSATP Protocol from 1997 and the SADC Roads Act model. Due to donor assistance, and with the EC as a key player, significant achievements have been demonstrated since 1995. Several donors appreciate that the institutional reform process in the roads sector in Tanzania has come a long way, even seen in an international perspective (TØI, 2002). Substantial progress has been made, particularly since TANROADS started operating in autumn 2000.
During the 1980s, the road network in Tanzania deteriorated severely due to under-funding of maintenance works. Tanzania was one of the first countries to adopt, already in 1987, the principles of the SSATP Road Management/Maintenance Initiative (RMI) in developing maintenance management and related financing policies. The first RMI seminar in Tanzania was organised by the World Bank in May 1989. This had a significant impact on the subsequent steps taken by the RMI and some of the proposed reforms were embodied in the Integrated Roads Project programme (see below § 2.3.1).
The initial Road Fund established in the early 1990s was not very successful. The Declaration / Parliamentary Resolution proved to be an insufficient legal basis to ensure that the collected revenue was allocated to road maintenance. A Central Roads Board was created through an Order of the Minister of Works in December 1993 under the Highways Ordinance. The Central Roads Board was constituted at the end of 1994 and the first meeting took place on 31 January 1995. The Board was advisory and one of its mandates was to oversee the functioning of the Road Fund. However, the legal basis and administrative structure to support the Road Fund were weak, and the Central Roads Board failed to meet regularly. As a result, the envisaged revenue was not realised as from 1995/96 because the Ministry of Finance diverted the funds to other uses.
The process of institutional reforms in the roads sector in Tanzania was supported by studies since 1995. A key recommendation of a study carried out (by Coopers and Lybrand) in 1994 was to establish the Road Fund by an Act of Parliament. The aim of such an Act was to provide an effective legal force for channelling funds to the roads sector and road maintenance.
In 1997, the Government of Tanzania (GoT) commissioned another institutional study to identify areas requiring further reforms, in order to improve the performance in the roads sector. The Final Report submitted by the Joint GoT/Donor Working Group to the Government in September 1998 confirmed the need for establishment of a dedicated Road Fund and a National Roads Agency.
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Based on the study recommendations, in 1997/98 the GoT adopted a number of decisions on institutional reforming and financial mechanisms in the roads sector. The recent reforms include:
− the establishment of the Road Fund dedicated to maintenance and funded from fuel levy and other road user taxes;
− the establishment of a semi-autonomous National Roads Agency (TANROADS) in charge of implementing roads development, rehabilitation and maintenance by using private sector contractors and consultants; and
− the decentralisation of management of district roads to the District Councils.
In the context of the above, it is unlikely that such reforms would have taken place without the significant assistance that Tanzania has received from the EC, international agencies and bilateral donors.
2.2.5 Road Fund Board and Road Fund
The Parliament enacted the Roads Tolls (Amendment) Act No. 2 of December 1998 based on the Roads Tolls Act No. 13 of 1985. The amended Roads Tolls Act gave full autonomy to the Road Fund in its second-generation form and secured 90% of its revenue for maintenance and emergency repairs. The new Act also established the Road Fund Board (RFB) to manage and control the Road Fund financial resources.
The RFB has nine members, including the Chairperson appointed by the President, the Permanent Secretaries from the Ministry of Finance, MoW, and PORALG, a top-official from MoW, and four members from the private sector. The representative from the Truck Owners' Association (TATOA) is presently the Vice-Chairman. The other private sector members are from the Confederation of Co-operatives, the Association of Tour Operators, and the Tanzania Roads Association (TARA).
In summary, the main responsibilities of the RFB are the following:
− to ensure full collection of the Road Fund revenues;
− to monitor the use of funds by TANROADS, the MoW, PORALG, and local governments;
− to advise the Government on adjustments to the existing sources of funding e.g. road tolls and other road users charges including the fuel levy, transit fees, heavy vehicle licences, vehicle overloading fines, and propose new ones;
− to ensure adequate and stable flow of funds to road infrastructure operations.
With regards to the financing distribution key of the Road Fund, at least 90% of the collected monies shall be used for maintenance and emergency repairs of classified roads, and not more than 10% for roads development. 70% of the funds collected by the Road Fund shall go to the MoW and TANROADS for trunk roads and regional roads, and 30% to the local governments and PORALG for district and urban roads. According to the Roads Tolls (Amendment) Act of 1998, TANROADS receives minimum 63% of the funds and accordingly a maximum of 7% is channelled to the MoW. Local governments receive minimum 27% and PORALG maximum 3% (Source: The TANROADS Establishment Order, 2000).
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The funds allocated to local governments are distributed according to a formula (including variables such as length of road network, population etc. of the district). Presently 113 District and Municipal Councils submit their programme to PORALG for comments and approval. The City of Dar es Salaam is divided into three municipalities that are responsible for the urban road networks and receive money from the Road Fund. The RFB monitors the flow of funds to road infrastructure operations and it is therefore in the position to stop the payments in case the District Councils do not submit the reports.
All interlocutors of the mission team, road user associations as well as ministerial officers, stressed that there is much transparency and accountability (including publicising in newspapers) in the management of the Road Fund. It is also considered a significant improvement that the Road Fund provides the monies for maintenance of the road network, and that “ring-fencing” has been introduced in its revenues. Funding figures have increased significantly although they are still not matching the overall rehabilitation and maintenance needs.
2.2.6 TANROADS
The Tanzania National Roads Agency (TANROADS) was established in July 2000 under the Executive Agencies Act of 1997. The primary responsibility of TANROADS is to provide cost-effective and sustainable maintenance and development of the national and regional roads. Its day-to-day activities include procurement and management of contracts for design and supervision, maintenance, emergency repairs, rehabilitation, upgrading and construction of roads, improvement of road safety and advice to the Minister of Works on regulations and standards for road works.
TANROADS started operating in October 2000. During a 16 months transition period, it took over former staff from the MoW and recruited its own key staff, following a thorough job analysis and evaluation. TANROADS has acquired its own office facilities, has trained the staff and established a management system. The organisation is now (June 2003) considered fully operational and starts having a positive impact on the roads conditions. Until April 2002, 18 GoT and donor funded projects had been transferred to TANROADS.
The present status of TANROADS is considered as semi-autonomous only1, due to its managerial relations with the MoW. The TANROADS’ Board - i.e. the "Central Roads Board" - consists of the same members as the RFB, including the four representatives from the private sector but the Chairman of the TANROADS Board is the Permanent Secretary of the MoW. The Central Roads Board (called the "National Roads Board" in the latest version of the new Roads Act proposal) has a ministerial secretariat separated from the RFB administration.
TANROADS is being assigned two performance agreements every year:
1) With the Permanent Secretary of the MoW on rehabilitation, etc.
2) With the RFB on maintenance.
1 SSATP website: RMI Matrix: Policy Reform Status by Country (March 2003).
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The agreement between the MoW and TANROADS constitutes a contract for the latter to provide management services related to projects funded by the GoT and donors. The agreement between the RFB and TANROADS constitutes a contract for the latter to provide maintenance services funded by the Road Fund on the mainland’s trunk and regional road network.
2.2.7 Regional and district levels
A Regional Roads Board has been established in each of the regions. The regional board makes proposals for the roads, including district roads, to be maintained. It may also recommend that some district roads are up-graded to regional roads. Members of the Regional Roads Board are the District Commissioner appointed by the central government, the district road engineers, and the administrative secretaries of the District Councils. At the regional level there is also a road planning commission that involves several stakeholders.
TANROADS has an office in each region, the Regional Manager’s Office (RMO)2, as the agency is in charge of both national (trunk) roads and the regional roads. The RMO has to coordinate and monitor road maintenance and rehabilitation at the regional level. It also provides advice to local authorities as regards the management of district, urban and feeder roads. The RMO is staffed by one regional manager, one project manager, one accountant, and technical assistants and supervisors.
The RMO reports on the road conditions, and the priorities and selection of projects are discussed between the stakeholders in the Regional Roads Board before requests for funding is being submitted to TANROADS.
District roads and urban roads are under the responsibility of the local governments i.e. the District and Municipality Councils (see under PORALG). Maintenance of this network is financed by the Road Fund, possibly complemented by the District's own revenues. The MoW has suggested a separate TANROADS administration for the districts, but other stakeholders are in favour of TANROADS acting only as a kind of consultancy agency for the local governments and for PORALG.
The District Committee is strictly an administrative GoT set-up and has a small office. Each District Committee oversees four to six District Councils. The District Committee includes representatives from the central government, local government and the private sector. The Committee discusses what also has to be initiated in the roads sector.
Currently there is an engineer employed in about 80 out of the 121 District Councils. The road office administration in each district is supposed to have an engineer but it is difficult to keep them as government salaries are very low compared to the private sector.
2 Formerly the Regional Engineer’s Office (REO) under MoW
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The Road Fund monies to the local governments are transferred via the National Bank of Commerce (NBC) to the office of the Micro Finance Bank in each district. This takes some time but delays are not perceived to be very significant.
2.2.8 National Road Safety Council (NRSC)
The NRSC of Tanzania was established by the Act No. 30 of Parliament in 1973. The Road Traffic Act No. 5 and the NRSC regulations define its functions.
NRSC is the overall body responsible for law enforcement relating to road safety matters. The role of the NRSC is to advise the GoT on road safety issues, to define measures to be taken and pursue implementation of initiatives through the Members of the Council. More specifically, NRSC activities include monitoring, preparing studies, conducting training, and making proposals to improve road safety. The Council is also committed in safety campaigns across the country. Each year, it prepares annual campaigns including a countrywide road safety week held in one of the regions of the country.
The Regional Commissioner of Dar es Salaam is Chairman of the NRSC. The MoW, the National Institute of Transport (NIT), TANROADS and the traffic police (among others) are represented in the NRSC. The NRSC has established some advisory committees, e.g. on education of the public stakeholders, on research and studies, on road accidents and on better use of the roads.
The Chief Executive of TANROADS is among the NRSC members but still the role and involvement of TANROADS remain to be clarified.
All regions have got a separate Road Safety Committee, which enables regions to make sure that all relevant stakeholders are represented (education, health sector, road users, etc.). The TANROADS regional manager is member of both the Regional Roads Board and the regional Road Safety Committee.
District level road safety committees are being established as well. Guidelines for these committees have been issued, which the NRSC considers as an important achievement.
2.2.9 Further institutional development in the road sector
A major concern is the present division of transport sector responsibilities between two ministries (MoW and MCT) apart from PORALG. The involvement of two or three ministries makes it difficult to ensure the implementation of coordinated transport policies at the national level. This affects the enhancement of such issues as e.g. road safety and a sector approach to institutional reform, and multimodal and inter-modal transport solutions.
Several stakeholders now consider that it is important to end up with a single ministry being responsible for all transport sector matters at the national level. A single "Ministry of Transport" could also be considered as a precondition for a sustainable and GoT committed completion of the road sector reforms. Under the present institutional Report of the mission to Tanzania – October 2003
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framework, the development of TANROADS to a fully autonomous agency in charge of the management of all road works would leave the MoW with a scope of responsibilities confined to road infrastructure policy and regulation.
Another major concern is the present proposal for a new Roads Act. On 15 May 2003, the GoT circulated to donors a draft Roads Act document asking for comments and views until the end of June 20033.
According to the assessment of the EC Delegation, this document does not state a clear and transparent role of TANROADS in relation to the MoW and the RFB. It would reverse the development of TANROADS to an autonomous agency and a lot of the ongoing positive changes, as it gives more power to the MoW and the RFB at the expense of TANROADS. This reflects an attempt of the MoW to get back some power on the management of road works.
The first phase of the institutional road sector reform is more or less implemented. However, the Delegation and the EC technical assistance (TA) team to TANROADS fear that the second phase will not take off if the present version of the Roads Act proposal is implemented.
2.3 Government’s transport policies, strategies, and programmes
2.3.1 Letter of Transport Policy and the National Transport Policy document
The actual process of policy formulation and elaboration of the transport sector strategic plan was developed within the framework of Annual Transport Policy and Planning Workshops joining the various stakeholders of transport, including donors. The first workshop in 1995 defined the roles to be played by various stakeholders in policy formulation, management and implementation issues. The second workshop held in 1996 reviewed the policy and regulatory framework since 1987, discussing strengths, weaknesses, achievements and future policy directions for each sub-sector. The recommendations from the two workshops formed the basis for a review of the National Transport Policy (NTP) document from 1987 and preparation in 1999 of the Working Paper on a NTP.
The preparation of the “Integrated Roads Project” - IRP (see below § 2.3.2) as a multi-donor programme started in 1987. In 1994, the Ministry of Works, Communications and Transport submitted a written presentation of the IRP programme together with a GoT “Letter of Transport Sector Policy” that had been sent to the World Bank in March 1994. The purpose of this policy letter was “to confirm our transport sector policies, strategies and programs of actions which will provide the basis for the execution of the proposed second Integrated Roads Project”.
3 The letter enclosing a draft of the Roads Act was sent to the World Bank, African Development Bank, Norwegian Agency for Development Cooperation, Embassy of Ireland, EC Delegation, Swiss Agency for Development and Cooperation, Japan International Cooperation Agency, and the Embassy of Italy. A previous draft version was circulated end-2002 to the donors, but these have not been involved in the elaboration of this key reform document.
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The policy letter from 1994 identified the following objectives:
− to create an environment for fair competition among operators;
− to remove operating functions from the Ministry;
− to ensure that the parastatal function as commercial entities and are eventually privatised.
The letter also stressed that the Ministry of Works and the Ministry of Communications and Transport had been merged in October 1993 into one ministry in order to strengthen the administrative capacity. However, already in 1995 this ministry was split again into the present two ministries (MoW and MCT).
The policy letter pointed out that the GoT was commissioning some short studies aimed at restructuring the transport sector with the view of separating policy making and regulatory functions from implementation. Main candidates for this separation were identified to be the management of roads, for which the establishment of a semi-autonomous roads agency was already under consideration, and the management of airports. As part of the first step the GoT announced the formation of a Central Roads Board and Regional Roads Boards.
The policy letter further envisaged starting preparations to commercialise port and maritime operations and to implement the “Open Skies” policy in aviation. In the railways sub-sector, agreements had been signed with the TRC and TAZARA, allowing them to operate on a commercial basis.
In the road infrastructure sub-sector, the letter stated the GoT commitment to increase the participation of competitive local consultants and contractors in the design and implementation of roads and bridges. It also confirmed commitment to increase the private sector contractors’ share of maintenance works and to reduce the force account share. Furthermore, the GoT promised to encourage the development and use of labour-based methods.
Finally, the policy letter stated that the GoT is committed to road safety and axle load control enforcement programmes in accordance with the SATCC agreements but it did not elaborate anything on the road safety issue.
In 1999, the GoT, through the Ministry of Communications and Transport (MCT), presented a “Working Paper on National Transport Policy” (MCT, 1999). The Working Paper confirmed the intentions expressed in the Letter of Transport Sector Policy from 1994 to remain with executive agencies to utilise the private sector and to limit the Ministry’s functions to policy formulation, strategic planning, monitoring and evaluation. The main functions to be separated from ministerial responsibility were still identified to be the management of roads and airports.
In the Working Paper, which presented an inventory including all modes and a SWOT analysis, the GoT expressed the intention to produce and elaborate a comprehensive National Transport Policy document, which was eventually released in March/April 2003.
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The NTP document introduces the “ vision”:
“To have efficient and cost-effective domestic and international transport services to all segments of the population and sectors of the national economy with maximum safety and minimum environmental degradation” (MCT, 2003).
The NTP document is a sort of “White Paper” that presents the status (inventory) of transport infrastructure and services. The document includes a presentation of the role of transport in the national socio-economic development, specific transport sector objectives and policy directions within urban, rural, pan-territorial and international transport.
The role of the transport sector in socio-economic development also refers to its links to the national Poverty Reduction Strategy. The section on transport sector objectives and goals provides a list of measures to ensure a comprehensive transport policy, including institutional arrangements and capacity building, private sector participation, involvement of stakeholders and the use of local capacities, environmental management and impact assessment, and safety/security.
The NTP document is outlining the major transport policy and planning issues. However, in its present form it does not represent a coherent and GoT committed transport policy strategy. The document still has to be complemented by the identification of priorities, time scheduling, and action and investment programmes. This would imply, in particular, a close cooperation between the MTC and the MoW.
2.3.2 Roads sector programmes
The Integrated Roads Project (IRP) was initiated by the Government of Tanzania (GoT) in 1987. To reverse the situation created by years of insufficient maintenance, a group of donors funded a first phase Integrated Roads Project (IRP1) programme. IRP was negotiated between the government and donors from 1987 until 1989, for a total cost of US$ 871 million and with each donor financing a particular component of the project. The programme was formally launched in March 1991 and was scheduled to be completed in 1994/1995. The overall outcome of this programme has been a substantial improvement of the road network, although much remains to be done as demonstrated by the figures on the current condition of the road network presented above (§ 2.1.1).
With the aim to follow up the positive general outcome of the IRP1 programme, the government agreed upon a meeting with donors in October 1993 to discuss proposals to be financed under a second phase of the IRP programme (IRP2). The total cost of IRP2 was estimated at US$ 650 million (Source: World Bank, 1994: Staff Appraisal Report Second Integrated Roads Project). The IRP2 started in 1994 with a targeted completion in 1999/2000. It focused on strengthening road administration and improving the financing to enhance the sustainability of road maintenance.
For various reasons, there were implementation problems for some of the components of IRP1 and IRP2 and hence the programme has been delayed considerably. The IDA (World Bank) component of IRP1 was closed in 1999, but the two EC supported projects, the
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Wazo Hill – Bagamoyo road and the Mwanza roads, were not yet completed by mid-2003. Completion of IRP2 is expected to go several years beyond 2002.
The importance of both IRP1 and IRP2 is that they have not only involved donor financial assistance but they have also promoted institutional, technical and financial reforms at the Government and private sector levels.
2.3.3 Future programmes
The GoT has decided to launch a Ten-Year Road Sector Development Programme, Phase II (10Y-RSDP). In 2000, the MoW commissioned a consultant to prepare the programme, and the Final Report was issued in January 2002. The scope of the 10Y-RSDP includes roads, bridges and ferries for the whole classified network of Tanzania Mainland and Zanzibar and the programme shall cover the period from 2001/2002 to 2010/2011. The Urgent Roads Rehabilitation Programme (URRP) is a component of the 10Y-RSDP.
It was advocated by the TANROADS technical assistance team that TANROADS' specific programmes are not following the 10Y-RSDP and donor commitments deviate much from it as well. The current TANROADS 5-years plan is based on actual commitments. 50% of the budget of this plan is covered by firm commitments, 20% by firm donor interest and only 30% is still not covered. Most projects within the main trunk road corridors have a reasonable rate of return but it is a political decision to spread road infrastructure investments more evenly in the country.
In the next five years, almost 78% of the budget (including Road Fund, GoT and donor contributions) will be dedicated to development (including rehabilitation and reconstruction) and 22% to maintenance (Source: the TANROADS Quarterly Report January-March 2003). 25% (1,000 km) of the paved roads will be rehabilitated/reconstructed.
Under the 2001/2002 annual budget, the GoT allocated Tsh 24 billion (240 million €) for rural roads, and Tsh 157 billion (1,57 million €) for trunk roads. This is about 24% of the overall total expenditure of Tsh 762 billion (7,62 million €) in the priority sectors, including education, health, water, agriculture, lands, roads, judiciary and the Government Agency to co-ordinate AIDS related interventions (TACAIDS)4. The estimated costing of the roads programme for 2002/2003 and 2003/2004 are Tsh 260 billion (2,60 million €) and Tsh 287 billion (2,87 million €) respectively (Source: Government of Tanzania, 2001: PRSP Progress Report 2000/01, pp 32). The substantial increases under the GoT budget projections for the years 2002/2003 and 2003/2004 reflect the estimated costs in carrying out needed repairs and rehabilitation of district and other rural roads.
2.3.4 Poverty Reduction Strategy Paper (PRSP)
The final version of the PRSP for Tanzania is dated October 2000. The PRSP is central to donors and the key development policy document, which states poverty alleviation as the
4 IMF (2003), Tanzania: Selected Issues and Statistical Appendix.
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basic principle. In relation to the transport sector, the PRSP focus and priority is on rural roads, whilst other transport sector aspects are not addressed. However, the PRSP Progress Report issued in 2001 also refers to continued efforts during 2000/2001 to strengthen the economic infrastructure, including through privatisation, approval of regulatory frameworks and the establishment of TANROADS.
Currently, there is a debate between the GoT and donors on the PRSP priorities and on the support to bring at the sector level (education, transport, etc.).
Some bilateral donor representatives pointed out to the mission team that the PRSP section on infrastructure and roads, and on their links to agriculture, is rather weak. There is a lack of local government power and no policy regarding rural roads and the responsibilities are not clearly defined at the district level. The rural roads projects to be financed by donors will not be sustainable as long as there is not a clear and adequate policy framework in place.
The MoW makes the rehabilitating of inter-regional connections by trunk roads its priority and does not pay much attention to the PRSP and rural roads. Several stakeholders have suggested that the PRSP should also address trunk roads and define the balance and priorities between the two levels of roads.
The MoW and TANROADS officials noted that it is not clear how the PRSP priority on rural roads is related to the Integrated Roads Project (IRP) as a multi-donor programme and to the national Ten-Year Road Sector Development Programme (10Y-RSDP). More generally, the prioritisation of projects raises a lot of questions and the dialogue with the GoT is not easy and needs to be built up. MoW is initiating the drafting of Terms of Reference for a study showing how the 10Y-RSDP should be linked to the Poverty Reduction Strategy.
A MCT official expressed that the PRSP document completely ignores and forgets about modal complementarity and interdependency aspects. It becomes problematic if all donors continue focusing on roads only. The GoT’s decisions reflect a higher-level lack of understanding of the important role of the overall transport sector in socio-economic development.
2.4 Donors’ interventions in the transport sector
Numerous donors have been involved in the financing of transport in Tanzania, the most important contributions having been made by the EC and the World Bank.
During the period between 1995 and 2001, the World Banks’ interventions targeted various modes of transport, ranking from roads rehabilitation to the modernisation of ports and railways. The World Bank has continued to be involved in sector policy dialogue with the GoT.
The major transport sector projects and programmes financed by the World Bank can be summarised as follows:
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Railways Restructuring Project, 1993-1997, US$ 76.0 million (status: closed);
Integrated Roads Project (IRP1), 1990-1999, US$ 180.4 million (status: closed);
Second Integrated Roads Project (IRP2), 1994-2004,
US$ 170.2 million (status: active);
Second Port Modernisation Project (ports, waterways and shipping), 1990-2000,
US$ 37.0 million (status: closed).
A key objective of the World Bank contribution to IRP2 is to support the country’s economic recovery by reducing the transport costs and improving accessibility to economically productive areas. More particularly, the programme supports rehabilitation and maintenance of high priority trunk, regional and essential district road networks. Next, it is designed to facilitate policy and institutional reforms to improve the aspects of administration, management and financing. Under IRP2, a pilot programme is being run on the Tanzania Village Travel and Transport Program (VTTP). Finally, IRP2 aims to improve the runway at Kilimanjaro International Airport, securing the safety conditions of the services provided.
A particular donor focus has been devoted to rehabilitation of the trunk roads, notably the Tanzam Highway and the Central Corridor roads. Besides the World Bank and the EC, other major donors for trunk roads rehabilitation are the African Development Bank (AfDB), NORAD, DANIDA, SDC (Swiss Agency for Development and Cooperation), and JICA (Japan International Cooperation Agency).
In the area of rural roads rehabilitation, the major donors have been the USAID (through an agriculture transport programme), NORAD, FINNIDA, DANIDA, SDC and GTZ. The bilateral donors DANIDA and SDC plan to withdraw from the trunk roads support and to concentrate in the future on the rural roads sector.
The EC is considered as a key donor player in the road sector reform process. The common donor approach of the EC and World Bank is based on the four so-called “Building Blocks” of the SSATP Road Management Initiative (RFB, 2002; EC Delegation, 2002). These “building blocks” consist in:
1) Involving the road users in funding and management.
2) Securing an adequate and stable flow of funds based on road user charges.
3) Clarifying who is responsible for what and ensuring a matching authority.
4) Strengthening the road management by introducing sound business practices.
Presently, the EC is providing technical assistance to TANROADS and starting the technical assistance to the RFB as well. The World Bank’s technical assistance unit within TANROADS has been staffed with four road sector specialists in 2003.
DFID and NORAD have also provided institutional support, notably for the establishment of TANROADS. NORAD employed the first Chief Executive and envisages a continuation of its support to the agency.
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3. EC interventions in the transport sector
This chapter presents the EC cooperation strategy for Tanzania in relation to the transport sector and an overview of EC interventions in the sector during 1995-2001. The follow-up under EDF 9 is also discussed.
3.1 The EC cooperation strategy and the role of transport
The National Indicative Programme (NIP) for EDF 7 identified the transport sector and agriculture as the two first priority areas of the EC cooperation with Tanzania (Source: EC Delegation, Annual Report 1998-1999).
The Annual Report of the EC Delegation for the year 1996 (AR 1996) noted that the GoT has committed itself to major policy changes, restructuring and investment in the transport sector, comprising the Integrated Roads Project (IRP), the Railways Restructuring Project and the Ports Modernisation Project. The GoT has undertaken a number of measures to strengthen the roads sector institutional and financial capacity. These included: strengthening of the Ministry of Works, Communications and Transport (MWCT) and the 20 Regional Engineers Offices, introduction of a Road Fund based on fuel levy, contracting out of road maintenance to the private sector, and the establishment of the Central Roads Board and Regional Roads Boards to advise the MWCT. However, AR 1996 also noted that a particular worry was the use of dedicated road funds for other purposes than road maintenance and the corruption identified in the former MoW.
The Co-operation Agreement for the NIP of EDF 8 was signed in March 1997. The overall goal of this NIP was the promotion of sustainable economic growth with particular attention to improving the welfare of the poorest sections of society. The cooperation was based on the following priorities:
− The development and consolidation of democracy and of the rule of law.
− The alleviation of poverty.
− Sustainable economic and social development, with particular stress on the development of the gender dimension of human resources development and on environmental protection.
− Integration into the world economy, in particular through the promotion of the private sector and the development of trade.
Again the transport sector was appointed as one of the two focal sectors of cooperation, in this case together with social infrastructure and services. The NIP of EDF 8 allocated approximately 50% of the total NIP budget of Euro 240 million to the transport sector including roads, railways, ports and related services (Source: EC/GoT, March 1997: National Indicative Programme EDF VIII). The main specific objectives of support to the transport sector under EDF 8 were presented as follows:
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(a) The improvement of sector management.
(b) The sustainable improvement of the condition of transport infrastructure.
(c) Increased earnings from international transport services.
(d) An increased role for the private sector.
(e) A reduction in environmental damage arising from transport-related activities.
The NIP of EDF 8 referred to the policies adopted in the IRP as still being pursued. The NIP also noted that the Got has committed itself under the NIP framework:
“to take a wide range of measures in the next three years, of which the most crucial ones are: the progressive increase of road maintenance funding in line with IRP targets, the enactment of an autonomous Road Fund with resources separate from the overall budget, and the finalisation of a Strategic Transport Plan. Moreover, the Government of Tanzania is aware of the need to strengthen management throughout the sector and is committed to create autonomous authorities to manage the main road network and the airports, while private participation in the development of the sector will continue to be encouraged” (National Indicative Programme EDF VIII, pp. 4).
The NIP of EDF 8 noted that in the regional context the GoT is committed to promote cross-border trade flows, including through the harmonisation of procedures for customs clearance and border controls.
The Regional Indicative Programme (RIP) for the East Africa region under EDF 7 allocated funds to the Central Corridor Railway Restructuring Project and to the Musoma-Mukuyu road between Tanzania and Kenya (Source: Annual Report 1996 on Regional Co-operation with the East Africa region).
The RIP for SADC under EDF 8 allocated 45% of the total budget of Euro 121 million to “Infrastructure and Services” including transport, communications and energy. The RIP for Eastern Africa under EDF 8 allocated 75% of the total budget of Euro 194 million to “Transport, trade and regional integration”, notably the Central Corridor transport route. The regional organisations identified under the Eastern Africa RIP are COMESA, EAC and IGAD.
The Delegation advisors confirmed to the mission team that over the last few years the main focus of the transport policy has been on the roads sub-sector. There are only bits and pieces of interventions in other transport sub-sectors, notably the restructuring and privatisation of the railways (TRC).
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3.2 Overview of EC interventions in the transport sector 1995-2001
The following table presents an overview of the main areas and budget figures of EC transport sector interventions planned and contracted during the period 1995-2001. The aggregated budget figures are based on data from the CRIS database and some of them, particularly the contracted budget figures, may not be updated. They do not include interventions under EDF 6. The implementation of several of the EDF 7 funded interventions and the EDF 8 funded interventions in particular goes beyond 2001.
All budget figures are EDF funded grants, except for the Euro 12,8 million EIB loan to aviation.
The figures in brackets are from an overview of EDF 7 and EDF 8 budget figures presented on the EC website.
Planned budget
Million Euro
Contracted
Budget
Million Euro
Main intervention area
Types of intervention
NIP
(NIP+RIP)
RIP
NIP
RIP
Road sector institutional development
Technical assistance and studies
2,9
(2)
0
2,2
-
Mwanza-Nzega road
22.3
(42)
20
Central Corridor roads rehabilitation
Works, supervision and design
Other roads
65.4
(85)
20
0,6
?
Other trunk roads rehabilitation
Studies, design, supervision and works
18,1
(17)
-
18,0
-
Mwanza roads rehabilitation
Design, supervision, works, and study
32,5
(35)
3.0
27,2
?
22,0
-
RUSIRM
Technical assistance, design, supervision and works
(21,8)
13,4
-
19,9
14.5
Railways (TRC restructuring)
Works, procurement and studies
(34,1)
19,9
?
Dar es Salaam Port
Mainly works
11,0
-
11,0
-
Zanzibar Port
Studies and works
12,4
-
1,3
-
Aviation
Mainly equipment procurement
40 (NIP+EIB)
-
25,9
-
(Sources: CRIS; http://europa.eu.int/comm/development)
RIP funding contributions to transport sector interventions in Tanzania include Euro 40 million to Central Corridor roads rehabilitation, Euro 3 million to Mwanza roads rehabilitation, and Euro 14.5 million to the Railways. In addition to the budget figures and interventions listed above, other resources benefited to the transport sector:
- A Euro 6.96 million grant to the Emergency (El Nino) Road Repair Programme; and
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- EC grants to transport infrastructure under the special programme for refugees affected areas (7ACP RPR 641 and 7ACP TA 98) including rehabilitation of the Kigoma –Nyakanazi road and Mwanza airport.
3.3 Follow-up under EDF 9
Under EDF 9, a major allocation of 40% of all NIP resources has been initially earmarked for the roads sub-sector alone. However, the contents of the NIP of EDF 9 for the roads sector are still under discussion, including the selection of high priority corridor trunk roads for EDF 9 funding. The main institutional issues under discussion are (Source: EC Delegation and GoT, 2002: Joint Annual Report on Tanzania – EU Cooperation 2001):
- consolidation of the sector reform process;
- redefinition of the role of the Ministry of Works (MoW);
- adequacy of road maintenance funding;
- capacity building of TANROADS;
- strengthening of districts and municipalities to deliver district road programmes.
The NIP of EDF 9 initially intended to include one large road sector programme and some direct financing support to the Road Fund. The EC had offered to finance from EDF 9 the Central Corridor segment between Dodoma and Singida. However, for political reasons, the GoT wanted to have this project completed rapidly and was not able to accept the EC offer, fearing that the mobilisation of EC resources would be too slow. Instead the GoT decided to finance this segment from its own budget sources (most likely with some financial support from other donors). It can be noted that the management responsibility of GoT funded projects has been given to the MoW and not to TANROADS.
Thus the EDF 9 programme will have to be revised. The EC Delegation has taken notice that trunk roads are already well covered by other donors and the GoT, so that there may not be a need for EC to devote to this task as much resources as had initially been considered. The support to road maintenance is considered interesting as there is an opportunity to give projects that are less than Euro 5 million to local contractors (for resealing, etc.).
Under EDF 9, the intended direct financing support to the Road Fund is consistent with the PRSP. The PRSP privileges rural roads, and 30% of the total Road Fund resources are allocated to local governments for the maintenance of district (and urban) roads.
The NAO has proposed that 35% of the total EDF 9 funding be provided in the form of budget support.
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4. Findings in relation with the evaluation questions
This Chapter presents findings specifically related to the ten evaluation questions, their criteria and indicators.
During the first phase of the evaluation, a form or “evaluation question sheet” was prepared in order to guide the data collection process during the second phase of the evaluation. This form included, for each evaluation question: (i) the evaluation team’s comprehension of the question; (ii) the logic behind the question; (iii) several judgement criteria to answer the evaluation question; (iv) one or several indicators per criterion; and (v) a potential source of information for each indicator.
It was also specified that, first, judgement criteria could be country-specific or programme-specific and that some questions included both types of criteria and, second, that within the same question, criteria could be specific to a type of intervention or more general to the geographical region where the intervention takes place. Therefore, it was concluded that not all criteria were meant to apply to all interventions under study.
The following pages present these “evaluation question sheets”. They have been used as check lists to collect information during the field mission and the results from deskwork. Together with information from the other field missions and desk work, they intend to provide a basis for forgiving an “overall judgement on the Commission’s past performance and the relevance of its current approach to programme design as well as findings and operational recommendations”, as requested in the TOR5. Therefore, information presented in the following pages does not attempt to cover all the information necessary to answer the evaluation questions at the country level.
The information presented is complementary to the one in Chapters 2 and 3. When relevant, the logic behind the criteria, as proposed in Phase I of the evaluation, has been kept for clarity. When indicators or criteria are the same for more than one question, reference is made to the place were they first appear. Finally, some of the indicators or criteria have been considered not relevant in the case of Tanzania, given the nature of the interventions or the context of the country.
5 Terms of Reference, page 4. Report of the mission to Tanzania – October 2003
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Q.1. To what extent were policy and programme development at sectoral level conducted in partnership with third countries since the publication of the last major evaluation and with what effect ?
C1
EC interventions are designed and carried out in the framework of a national sectoral policy
During 1995-2001, several policy and programme documents relative to the road sector have been issued, which provided a basis for the co-operation between the government and the EC. No similar documents exist for the other transport sub-sectors and not for the transport sector as a whole. The Ministry of Transport and Communication has issued in 2003 a National Transport Policy paper but the status of this document is not clear yet.
I1
Existence of a sectoral policy document
During the period under scrutiny, several policy related documents have been issued, which target the road sector, notably:
- Ministry of Works, Communications and Transport (MWCT), June 1994: The Integrated Roads Project (IRP); including a “Letter of Transport Sector Policy”.
- Ministry of Works (MoW), January 2002: 10 Year Sector Development Programme – Phase II.
The following two documents that have been issued by the Ministry of Communications and Transport (MCT) address the whole transport sector. They reflect a sectoral approach of transport:
- Ministry of Communications and Transport (MCT), March 1999: A Working Paper on National Transport Policy
- Ministry of Communications and Transport (MCT), 2003: National Transport Policy (NTP).
The NTP is distributed in the form of a “White Paper”. It has not yet been followed up by an action programme that defines priorities, resource allocation and a time schedule for implementation.
I2
Reference to national priorities in EC project or programming documents
The 8th EDF Programming Strategy Paper (EC, March 1996) states that “the main focal sector for programmable aid will be transport infrastructure”. According to the Strategy Paper, EC support in the roads sector is provided within the framework of the multi-donor second Integrated Roads Project (IRP2). The Strategy Paper refers to the GoT’s commitment to significant investment programmes comprising the Integrated Roads Project (IRP), the Railways Restructuring Project (RRP) and the Ports Modernisation Project (PMP). It also points out that the GoT has adopted clear policies and commitments in the framework of the multi-donor programmes in the roads, railways and ports sub-sectors. These include: strengthening the Ministry of Works, Communications and Transport (MWCT), establishment of the Central Roads Board and Regional Roads Boards to advise MWCT; introduction of a Road Fund financed though a tax on petroleum products, progressive contracting out of road repair and maintenance works to the private sector; operation of the Tanzania Railways Corporation (TRC) as an autonomous commercial entity; commercialisation of the Tanzania Harbours Authority (THA). Report of the mission to Tanzania – October 2003
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I3
Delegation organises/participates in relevant coordination meetings with partner government
The Delegation has been very proactive during most of the period 1995-2001 to establish and sustain a close dialogue with the GoT concerning the roads sector reform process. The Head of Delegation, who considers that an EC Delegate in a developing country is acting as managing director of a development agency, is personally involved in the implementation of the EC cooperation in the transport sector.
The Ministry of Finance/NAO is the main negotiator with the EC of the five years National Indicative Programme. It leads the negotiation but takes advice of the line ministries.
NIPs are joint undertakings of the government and the EC, but according to NAO officials the Delegation has more weight in the final decision than the government.
There are good working relations and meetings every two months between the NAO and the Delegation to discuss the implementation of the projects portfolio, and an annual review is carried out in July that also involves non-state actors.
TANROADS officials stressed that their relation with the Delegation is good and expect the deconcentration to make these relations still more effective.
I4
Delegation organises/participates in relevant coordination meetings/activities with other donors
The EC Delegation is leading the donors community in the roads sub-sector and initiates donors meetings that take place every three months. The most recent meeting took place at the beginning of June 2003 on the ToR of a road sector review.
Donor meetings with the Government are carried out on an ad hoc basis with the donor community represented by the EC and some bilateral donors.
It is accepted among other donors that EC should take the lead concerning road sector reform, although there exists some disagreements between the EC and the World Bank regarding notably their assessment of TANROADS’ performance. However, the recent World Bank Aide Mémoire (dated 17 April 2003) indicates a rather positive assessment of TANROADS' performance in relation to the implementation of IRP2.
At the time of the mission, a particular concern of the EC was the proposal submitted by the MoW for a new Roads Act. The EC Delegation was taking the leading role in the preparation of a joint donor statement on this document.
There is no clear donor coordination and approach to road transport services.
I5
There is a MTEF and an annual budget
The annual budgeting process is established and guided by the MTEF (Medium Term Expenditures Framework) and the Public Expenditure Review yearly exercises, ref. the PRSP Progress Report 2000/01 Chart I (priority sector expenditures), where the transport sector is included among “Others”. Report of the mission to Tanzania – October 2003
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C2
Inter-sectoral linkages have been properly identified
The final version of the Poverty Reduction Strategy Paper (PRSP) for Tanzania (GoT, October 2000) only reflects a limited role of the transport sector in the overall socio-economic development. The PRSP mainly points out the influence of rural roads (feeder, district and regional roads) on the access to the farms, agricultural markets and services in rural areas. The Progress Report 2000/01 (GoT, August 2001) “updates” the PRSP and indicates that a detailed costing of needed interventions has been developed on rehabilitation, upgrading and emergency repairs of rural and district roads under the “Urgent Roads Rehabilitation Programme” (URRP).
The PRSP is central to donors and a key policy document. However priority in the PRSP is on rural roads, whereas the MoW makes connecting the various regions of the country by trunk roads its priority and pays little attention to rural roads. Several stakeholders suggested that the PRSP should also address trunk roads and define the balance and priorities. The PRSP section on infrastructure and roads and how they link to agriculture and economic development is considered weak.
The 9th EDF Country Strategy Paper (CSP) and National Indicative Programme (NIP) 2001-2007 notes (pp 12) that the PRSP is not strongly oriented towards the development of the private sector and does not contain new ideas for the development of trade and regional cooperation.
The Regional Indicative Programme (RIP) for East Africa (under Fourth Lomé Convention, 2nd Financial Protocol) pointed out the importance of the linkages between transport, trade and regional integration, and as a consequence allocated 75% of the RIP resources to this priority area. However, no clear references were made to these inter-linkages in the NIPs for Tanzania.
I6
Existence of multi-sectoral policy papers in which transport is identified
The interim National Poverty Reduction Strategy was adopted by the GoT in 1997. As mentioned above (I.2) the PRSP was issued in October 2000. As far as transport is concerned, only rural roads are identified as a priority in this document.
EC interventions have concentrated up to now on national and regional roads.
C3
The Delegation plays an active role to promote and lead coordination complementarily with other donors specially MS and the World Bank
The road sector reform process in Tanzania has been launched within the framework of the Road Management (Maintenance ) Initiative (RMI) that is one of the five main components of the SSATP. Thus the overall complementarity between the EC and the World Bank has been ensured from the outset.
However, the Bank does not have a permanent infrastructure expert in Dar es Salaam. World Bank projects are followed through short-term missions. This does not favour a close cooperation with the EC. The EC and the Bank disagree on their assessment of some developments in the transport sector.
The EC exerts a lead among bilateral donors involved in the transport sector, whether they are EU members or not. Some division of labour tends to take place between the EC and bilateral donors, as several of the latter intend in the future to concentrate their interventions on rural roads and to downsize their interventions on national roads.
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I4
Delegation organises/participates in relevant coordination meetings/activities with other donors
See above under C3
I7
Agreement of common donor approach
In 1998 donor pressure was successful at bringing the road sector reform process back on track. EC Delegation, USAID and SDC were members of the Joint GoT/Donors Working Group that recommended the establishment of the Road Fund and National Roads Agency. A RMI meeting held in Tanzania in 1998 also contributed successfully to facilitating the reform process.
There is no formally approved common donor approach, but there is a high degree of donor consensus on the approach to road sector reform in Tanzania. Currently, the EC Delegation to Tanzania co-ordinates the process of preparing a common position of donors involved in the transport sector on the draft of a new Road Act.
C4
The Delegation plays an active role to enhance sector coordination with the government, who has the lead role
The Delegation is very committed and proactive in its approach. Sector coordination has been concentrating on the road infrastructure sub-sector and the reform process, and the results of the overall intervention have been very successful and effective so far. This is reflected by growing revenues for road maintenance via the Road Fund, and the establishment of Tanzania National Roads Agency (TANROADS) as an executive and semi-autonomous body. However, there is still a risk for some backtracking particularly as concerns the relations between the Ministry of Works, the Road Fund Board and TANROADS.
In July 2002, the EC Delegation has had a lead role in the drafting of a joint donor statement (“Tanazania at crossroads?”) presented to the Government. In this document, donors questioned the commitment of the government to see the reforms through and expressed concern that official statements focus on the construction of new roads with little attention to maintenance.
At the time of the mission (June 2003), the EC Delegation was again active at preparing a joint donor statement on the draft of a new Road Act, which raises concerns among donors.
I3
Delegation organises/participates in relevant coordination meetings with partner government
A joint donor/GoT review meeting held on 30 August 2002 agreed on establishing a small technical consultative committee. The first meeting of this Joint Government/Donor Technical Consultative Committee was held in November 2002. The second meeting of the Technical Consultative Committee was held on 30 May 2003. It included presentation of the Ten-Year Road Sector Development Programme and of the draft TOR for the proposed road sector reform study.
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I8
Sectoral approach agreed with the government
So far the sectoral approach has been confined to the roads sub-sector. Even in the roads sector, implementing the four RMI "building blocks" will take time. There remain problems hampering consolidation of the reform. Presently more attention is given to the construction or rehabilitation of trunk roads than to maintenance. This leads to discussions with the GoT, but the dialogue is serious.
The EC Delegation considers that TANROADS and the Road Fund Board have done well so far, and should be consolidated and strengthened. The EC is willing to provide support to these organisations, which is confirmed by the present interventions under EDF 8. In the earlier years it was not too clear how far TANROADS was to be autonomous, and the new draft Roads Act (May 2003) suggests that there are still some backtracking attempts.
There is a danger of a parallel system (both TANROADS and MoW carrying out contract management and implementation). The Delegation considers the separation between the Road Fund and TANROADS a good model. There are alternative models in other countries (e.g. Uganda and Kenya). The World Bank is more critical of the TANROADS model.
The EC is funding a pre-feasibility study of the EDF 9, which should provide an answer to the question: how do we go ahead with the EDF 9 funding? Part of the funds (up to Euro 30 million) may go directly as financial support to the Road Fund.
C5
Road boards or similar institutions at national and sub-national level exist and have a real influence on the sector policy
There is a Road Fund Board established in August 1999. The RFB has nine members of which four represent road users. Members of the Road Fund Board are highly committed to secure proper funding of road maintenance needs and have a real influence on the policy in this area.
I9
Existence of activity reports or meeting minutes of road boards, community councils or other institutions bringing together different stakeholders
The TANROADS Board includes the same members as the RBF, but with the Permanent Secretary of the MoW as the Chair person and with a separate secretariat/administration.
The Road Fund Board is being served by a secretariat, which issues quarterly reports. The Road Fund Board releases Annual Reports of the Road Fund. External audits take place.
C6
Non-governmental stakeholders (traders, transport operators, minority groups, women,…) have been involved at different stages of the intervention cycle
Four of the nine members of the Road Fund Board are from the private sector and represent road users (truck owners, cooperatives, tour operators, Tanzania roads association).
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I10
Evidence of consultations, discussion groups, community councils, public debate notably in local press, etc. at the different stages
The RFB issues a quarterly magazine (“The Road User”) in which various issues related to road transport are discussed through reportages and interviews.
The road user associations have regular contacts with the Government, but claim that it is difficult for them to get a real influence on policy. They have expressed a need for EC support to capacity building and human resource development.
The national consultancy industry (organised in ACET, see below under C8) is weak partly due to the dominance of international (including South African) consultancy companies on the domestic market.
Preparation of the PRSP involved a large participation of the civil society. But, as pointed out above, transport issues are somewhat neglected in this document except for the need to develop rural roads.
C7
Conflicting views about specific transport projects have been publicly expressed and the final decision has taken them into account -which does not mean accepted them
No particular information has been obtained on this issue.
I10
Evidence of consultations, discussion groups, community councils, public debate notably in local press, etc. at the different stages
No particular information has been obtained.
C8
Stakeholders feel their views have been taken into account and have contributed to improve the project’s impact
Regular consultations take place between TANROADS and the road user associations concerning such issues as axle load control and road safety. However, as mentioned above, road user associations claim to have little real influence on policy at the ministry level and on decisions at the TANROADS level.
The Association of Consulting Engineers Tanzania (ACET) expressed frustration of not being effectively involved in giving advice on tender procedures, etc.
I11
Subjective perception expressed by the stakeholders of effective participation to the decisions
See above
Report of the mission to Tanzania – October 2003
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C50
Projects are designed according to PCM and EcoFin and according to the transport sector guidelines
EC interventions in Tanzania are fully consistent with the sector approach recommended by the EC communication on sustainable transport.
I71
The problem addressed by the intervention has been clearly and explicitly identified
EC interventions concentrate on a few major issues: support the institutional reform process in the roads sector and strengthen the new institutions, notably TANROADS; contribute to the rehabilitation of the main road network; ensure that roads are properly maintained.
I72
The objective of the project is clearly stated and explicitly addresses the problem identified
Project overall goals and specific objective are clearly stated in the project documents.
I73
Overall objectives and project purpose are clearly and correctly differentiated
Project overall goals and specific objective are clearly stated in the project documents.
I74
The objectives of the project are quantifiable and are effectively quantified
For the projects involving works components, this indicator is fulfilled through the preparation of the tender documents. However, there is a general tendency to underestimate quantities, and a contributing factor is too little resources allocated to field surveys and design.
In the case of RUSIRM, the Logical Framework Approach (LFA) is used as a management tool also at the local level.
I75
Project identification and formulation documents
Documents relative to the earlier stages of the project cycle are difficult to retrieve.
I70
Assumptions and risk clearly stated
Financing agreements state assumptions and risks as well as Government commitments.
I76
PCM/ECOFIN conformity of the structure of financial proposal and of the project implementation and monitoring documents, including ToR
Projects are prepared and implemented in conformity with PCM/ECOFIN.
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Q2. To what extent has policy commitment from partner countries been secured so as to ensure the sustainability of transport strategies?
C5
Road boards or similar institutions at national and sub-national level exist and have a real influence on the sector policy
See Question 1.
I9
Existence of activity reports or meeting minutes of road boards, community councils or other institutions bringing together different stakeholders
See Question 1, C5/I9.
C9
Maintenance of transport infrastructure and equipment is ensured
Road maintenance is funded by a Road Fund endowed with stable resources. However, the Fund current revenues do not match the maintenance needs. The RFB Annual Report FY 2000/2001 estimates that the revenues for that Financial Year only covered 42% of the maintenance requirements. Nevertheless this is an improvement compared to a previous year estimate of 30%. A 14% tax increase on fuel sales in 2000 reflected the GoT commitment to increase the revenues of the Road Fund. The Road Fund Board is issuing recommendations to the Government to increase Road Fund revenues.
The managers of TANROADS and of the district road administrations are now able to plan their maintenance activity, since they know how much money will be made available to them for that purpose. Tenders for maintenance works are published in the newspapers. Local contractors show a growing interest for this market as they know that funding is available, but capacities are still insufficient.
In the case of road transport services, all operations are in principle commercial or individual and the question of maintenance of the rolling stock (“equipment”) is not relevant.
EC and the World Bank have provided support to the Railways Restructuring Project, including some emergency repair of the Tanzania Railways Corporation (TRC) infrastructure. However, the need for rehabilitation and renewal of the infrastructure and rolling stock is accumulating for both the TRC and the Tanzanian-Zambian-Railway company (TAZARA). To increase the speed of its transport operations, the TRC would need to upgrade the infrastructure on some sections, including the rails to have 40 kg gauge/m. The gauge (width) of the TRC railway is 1.000 meter, against 1.067 meter for the TAZARA railway line, which implies separate rolling stocks for the two companies.
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I12
Measures (such as funding being interrupted) have been taken by the EC when the partner government has not fulfilled its obligations notably in terms of maintenance and management of infrastructure
Between 1998 and 2000 there was a period of stand-off on the side of the EC, notably in the transport sector. The Delegation pointed out that they were criticised, included by Brussels headquarters, for having been late at launching the EDF 8 NIP. In fact launching of the programme was deliberately suspended until reforms of the roads sector were being carried out. The EC limited its activity to the continuation of what was going on, until reforms were carried out to ring-fence the resources intended for road maintenance and until TANROADS was being created as a semi-autonomous agency.
The establishment of the 2nd generation Road Fund and of the Road Fund Board in 1999 and the creation of TANROADS in 2000 made it possible for the EC to unleash projects under EDF 8. Thus the RMI’s four “building blocks” were in place in 2000. Since then there has been a positive turn-around in the country’s performance on road maintenance and the perception of the country by donors has improved.
I13
Ratio recovery price to actual cost of infrastructure maintenance or service delivered
As mentioned under C9, Road fund revenues in the FY 2000/01 only covered 42% of the estimated maintenance costs. But the Road Fund Board is highly committed to obtain from the government enough resources to cover all road maintenance needs and is making practical recommendations to that end.
I14
Existence of cost recovery procedures, for instance petrol taxes
The establishment of the 2nd generation Road Fund in 1999 resulted in an increase of the total revenues dedicated to road maintenance. During 1995 and 1998 there was a significant difference between total collection and allocations to MoW and PORALG (RFB status, April 2002). Revenues from fuel levy started contributing to the new Road Fund in 1999/2000 and soured as from 2000/01.
The Central Transport Licensing Authority (CTLA), which is under the MCT, collects licensing fees. MCT has agreed with the RFB that licensing fee revenues should go to road maintenance, but stress that the collecting body (CTLA) should remain with sufficient resources to cover collection costs. The MCT has suggested to keep 40% and to allocate 60% to the Road Fund.
I15
Budget amounts dedicated to maintenance (actual expenditures, during the evaluated period)
From the FY 1996/97 to 1998/99 there was a steady growth of fuel levy collections, but only partly allocated to the Road Fund. FY 1999/2000 experienced a decline of revenues due to tax evasions, smuggling and dumping of transit fuel (Road Fund Manager, August 2000). The Road Fund Board took over from the Ministry of Finance the management of the Road Fund as from the FY 2000/2001 and since then things have improved. In the FY 2000/01 fuel levy contribution reached 43.5 billion Tsh (Road Fund Board, April 2002).
I16
Maintenance needs of the maintainable network compared to the public resources dedicated to transport
Overall and comparative figures covering all transport modes are not available.
I17
Maintenance status of infrastructure in the field
For the national and regional road networks, the maintenance status is still inadequate, but it is improving significantly due to donor backlog maintenance works in progress and to increasing Road Fund budget allocations to maintenance.
Report of the mission to Tanzania – October 2003
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District and rural roads receive 30% of the total annual Road Fund budget. However, a systematic functional identification/classification of district level roads has not yet been presented, and the present capacity of PORALG and the district road administrations is not sufficient to absorb the Road Fund allocations effectively.
C10
The Delegation plays an active role to ensure commitment from partner country to guarantee adequate management and maintenance of infrastructure
The EC Delegation exerts a leadership with full support of other donors in pursuing institutional reforms. Ensuring that the road network is properly maintained is one of the Delegation’s main concerns.
The Joint GoT/Donors Working Group, which recommended in 1998 the establishment of a 2nd generation Road Fund and TANROADS, included the EC Delegation together with USAID and SDC.
The Delegation has drafted (June 2003) the Terms of Reference of a study to provide “A review of road sector reform and the future strategy and plan for change”. These ToR are discussed with other donors in the transport sector.
The EC has been deeply involved in the establishment of TANROADS.
Within the 8ACP TA 20 Financing Agreement, the EC is providing further technical assistance to TANROADS (Euro 1.2 million) and to the Road Fund Board (Euro 0.6 million; one-year technical assistance is still in the preparatory stage).
The technical assistance team to TANROADS includes three expatriates i.e. the team leader (highway planner/highway maintenance management engineer); a financial management cum audit specialist; and a human resource/professional development specialist. The highway planner (team leader) attends the TANROADS management meetings every two weeks. He works mainly with the Director of Maintenance and the Director of Technical Services.
Among the tasks are:
- Review of the maintenance planning/strategy.
- Preparation of a strategic plan with the aim to define the next 5-years programme.
- Working on a new organisational structure of TANROADS at the request of a number of donors. It is not a question of scaling down the staff except for reducing around 100 "askaris" (watchmen) around the yards and instead hiring private companies to do this job.
- Working on revision of the draft Roads Act proposal.
The highway planner is also involved in the development of equipment hiring units (EHUs) and the management of weighbridges for axle load control.
The financial specialist is preparing an accounting manual for use within TANROADS, which is based on the same software package as all the line ministries, but has to be customised to TANROADS needs.
The human resource specialist has helped carrying out a training needs analysis and a 5-year training programme for TANROADS. Other consultants will carry out the actual training.
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