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Transport minister warns Turkish firm over SGR construction delays

3 mins read

Transport minister warns Turkish firm over SGR construction delays

Habari za Dharura

October 27, 2026 Admin0

Bukene. Transport Minister Makame Mbarawa has warned Turkish contractor Yapi Merkezi over delays in the construction of the 165-kilometre Tabora–Isaka section of the Standard Gauge Railway (SGR), while praising Chinese subcontractor CCECC for accelerating work.

Prof Mbarawa said China Civil Engineering Construction Corporation (CCECC) had achieved five per cent progress in September and October 2026 alone, matching progress made by the main contractor over four years.

He said the government would not tolerate negligence or persistent underperformance in the implementation of strategic national infrastructure projects.

The minister made the remarks on October 26, 2026, in Bukene during the third day of his inspection tour of SGR projects covering Lot 3 (Makutupora–Tabora), Lot 4 (Tabora–Isaka), Lot 5 (Isaka–Mwanza) and Lot 6 (Tabora–Kigoma).

Prof Mbarawa said the government had considered the implications of terminating Yapi Merkezi’s contract and concluded that doing so could trigger further delays and additional financial challenges.

Instead, the contractor was advised to engage a capable subcontractor to strengthen implementation and improve the pace of construction.

“After conducting an assessment, the government established that removing the contractor outright could have led to further delays and financial challenges. We therefore advised the contractor to engage a capable subcontractor to support the project,” he said.

He explained that the government could not unilaterally force the contractor to adopt a particular arrangement outside the contractual framework, but had recommended bringing in additional capacity to accelerate the work.

The minister commended the Tanzania Railways Corporation (TRC) for its managerial and technical oversight, saying its interventions had helped restore momentum to a project that had experienced prolonged delays.

He specifically recognised TRC Director General Machibya Shiwa, the management team and employees for their efforts to establish the legal, technical and operational conditions needed to improve implementation.

“TRC, under the leadership of its Director General, Engineer Machibya Shiwa, has done significant work to create an enabling environment for the contractor to continue implementing this project,” Prof Mbarawa said.

“The project had been progressing slowly, but Tanzanians can now see the situation on the ground through reports from various media outlets.”

He expressed optimism that the improved pace of construction would increase the chances of completing the Tabora–Isaka section in 2028.

Prof Mbarawa also stressed the need to ensure value for money in implementing SGR projects, saying public expenditure must deliver tangible results commensurate with the funds invested.

Earlier, Mr Shiwa reaffirmed TRC’s commitment to closely supervising the project, ensuring the availability of essential construction materials and strengthening financial expenditure controls to accelerate implementation.

The 165-kilometre Tabora–Isaka section has a contract value of $909.1 million, inclusive of Value Added Tax (VAT).

It is part of Tanzania’s wider SGR programme, which seeks to improve domestic transport links, strengthen regional connectivity and facilitate the movement of passengers and freight across the country.

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