Tanzania s Transport Hub: What Prospects for Regional Integration and Investment? 22 NOVEMBER 2016, JOHANNESBURG, CHELSEA MARKOWITZ
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1 Tanzania s Transport Hub: What Prospects for Regional Integration and Investment? 22 NOVEMBER 2016, JOHANNESBURG, CHELSEA MARKOWITZ
2 OUTLINE 1. Current Condition of Transport Infrastructure in Tanzania 2. Ports 3. Transport Corridors and Regional Integration 4. Financing/Investment For Transport Infrastructure 5. Current Developments 6. Sustainable FDI 7. Key Insights
3 CURRENT CONDITION OF TRANSPORT INFRASTRUCTURE IN TANZANIA Quality of overall infrastructure 115 Quality of Roads 92 Quality of Railroad Infrastructure 89 Quality of Port Infrastructure 97 Quality of Air Transport Infrastructure 125 Available Airline Seat 81 Quality of Electricity Supply 122 Mobile Telephone Subscriptions 133 Fixed Telephone Lines Budget Speech: 46% of national dev budget for infrastructure Sh2.9 trillion ($1.3 billion) on transport infrastructure Develop the Central Corridor Standard Gauge Railway
4 DAR ES SALAAM PORT Port of Dar es Salaam 15 million tons of cargo/yr Managed by TPA & TICTS Average dwell time: 9-10 days Mombasa: 5 days Durban: 4 days
5 REGIONAL INTEGRATION & TRANSPORT CORRIDORS Central Corridor - TRL rail: Dar es Salaam- Mwanza- Kigoma - Access to Rwanda, Burundi, Uganda, DRC - Challenges: age, floods, major finance, priorities -Currently cargo less than 1% Dar es Salaam Corridor - TAZARA rail: Dar es Salaam- Mbeya - Access to Zambia, Malawi
6 REGIONAL INTEGRATION & TRANSPORT CORRIDORS TFTA COMESA EAC SADC North-South Corridor Linking Dar es Salaam to Durban SA, Botswana, Mozambique, DRC, Malawi, Zambia, Tanzania, Zimbabwe
7 FINANCING FOR TRANSPORT INFRASTRUCTURE Insufficient public finance Drive to increase private sector in infrastructure National PPP Act, 2010 Challenges of PPPs Common understanding, risk sharing Capacity constraints (contract, procurement, M&E) Investment in PPPs in Africa by Sector (USD Million) ICT Energy Transportation Water and Sanitation Source: World Bank Private Participation in Infrastructure (PPI) Database
8 POTENTIAL OF PPPS WITH FDI Trend toward concessioning operations of major transport infrastructure to foreign companies Capital (equipment), new technologies, efficiency Tanzania TICTS concessioned: dwell times down by 5 days, computerised, fully automated $20 million for new cranes TRL failed railway concession Challenges: Facilitating PP understanding Other Countries Nigeria: Lagos Port Complex concessioned 25 terminals Namibia: Walvis Bay Port expansion w/china Harbor Engineering
9 CURRENT DEVELOPMENTS Standard Gauge Railway Possible interest from China EXIM, AfDB roadshow Port Upgrade Improving access roads, dredging, moving oil jetty, berths Proposed Bagamoyo Port On hold
10 SUSTAINABLE FDI IN TRANSPORT INFRASTRUCTURE FDI can bring economic benefit, also should be sustainable Training, higher mgmt roles, technology transfer, local contracting/jvs Tanzanian Investment Act (1997): Technology Transfer Agreement Tanzania Public Procurement Act (2011): incentivises JVs National Economic Empowerment Council (NEEC): recent drive to understand how sectors can benefit from local content
11 SUSTAINABLE FDI IN TRANSPORT INFRASTRUCTURE Current Progress/ Challenges Generally employ locally in construction Concern with Chinese FDI Contracting of local companies for maintenance, JVs difficult Some company based mgmt training Not always a clear channel from VETA to workforce
12 KEY INSIGHTS Infrastructure developments Upgrade of the port progressing Prioritisation of rail is positive Strategic and focused planning for a bankable project PPPs More building of capacity/understanding (consultants) Multiple concessions where possible FDI Sustainability Incentives based localisation, training, joint ventures (donor facilitation) Develop rural feeder roads to new transport infrastructure
13
14 THANK YOU
INFRASTRUCTURE DEVELOPMENT IN TANZANIA
INFRASTRUCTURE DEVELOPMENT IN TANZANIA PROF JOSEPH MSAMBICHAKA MBEYA UNIVERSITY OF SCIENCE AND TECHNOLOGY 50 TH YEARS ERB ANNIVERSARY 5 TH TO 7 TH SEPTEMBER 2018 PRESENTATION LAYOUT 1. DEFINITION OF INFRASTRUCTURE
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