Multinational - Tanzania / Burundi / DR Congo joint standard gauge railway project phase I (AFDB-P-Z1-DC0-041)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Burundi
  • Congo, Democratic Republic of
  • Tanzania
Geographic location where the impacts of the investment may be experienced.
Specific Location
Tabora – Kigoma (Tanzania), Uvinza – Malagarasi (Tanzania), Malagarasi – Musongati (Burundi)
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • African Development Bank (AFDB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
A
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 8, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Tanzania, Government of Burundi
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Industry and Trade
  • Infrastructure
  • Mining
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 183.92 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 183.92 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 3,929.46 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Media Documents
Other Related Projects
Primary Source

Original disclosure @ AFDB website

Updated in EWS Apr 1, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

As stated by the AfDB, this intervention concerns the Tanzania-Burundi Standard Gauge Ralways SGR Phase II. It is designed to enhance regional integration and reap the benefits of integrated markets and economies of scale resulting from joint development and operations, Tanzania, Burundi, and the Democratic Republic of Congo (DRC) are developing a phased Standard Gauge Railway (SGR) programme centred around the Port of Dares-Salaam and the Central Transport Corridor.
The project comprizes six (06) main components : (i) Design and Build of Lot 6: Tabora – Kigoma SGR (Tanzania); (ii) Design and Build of Lot 7: Uvinza – Malagarasi SGR section (Tanzania); (iii) Design and Build of the Malagarasi – Musongati SGR (Burundi); (iv) Capacity Building and Technical Assistance; (v) Support for the joint Project Coordination Team (PCT); (vi) Consultancies for strategic studies and sensitization; and (vii) Rap Implementation.
The project cost is estimated at USD 3,929.46 million, including 12.5% financial and 12.5% physical contingencies. Tanzania sections will cost USD 3,209.27 million, while the Burundi section will cost USD 720.19 million.

The development objective of the project is to improve transport connectivity along Central Corridor to enhance regional integration and trade and incentivize large-scale mining and farming and through access to high-capacity railway transport service.
The railway is built to carry mining, agricultural and general cargo passengers. Then, the project immediate beneficiaries will be the mine operators, farmers, and the general population, who will benefit from access to efficient transport services, and the governments of Burundi and Tanzania, who will benefit from the commercial exploitation of mineral wealth.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated on the companies' websites:

China Civil Engineering Construction Corporation (CCECC), formerly the Foreign Aid Bureau of the Ministry of Railways, was established in 1979 under the approval of the State Council of the People’s Republic of China and was incorporated into China Railway Construction Corporation (CRCC) in 2003 for strategic regrouping under the approval of the State-owned Assets Supervision and Administration Commission.

Formerly the Railway Engineering Corps, China Railway Construction Corporation Limited (CRCC) was solely established by China Railway Construction Corporation on November 5, 2007 in Beijing. Now we are a mega size construction enterprise under the administration of the State-owned Assets Supervision and Administration Commission of the State Council. We were listed in Shanghai (601186.SH) and Hong Kong (1186.HK) on March 10 and 13, 2008 respectively, with a registered capital of 13.58 billion yuan.

As one of the most powerful and largest general construction groups in the world, we were ranked 42nd among Fortune Global 500, 3rd among ENR's Top 250 Global Contractors and 12th among "China's Top 500 Enterprises" in 2021.

Dar is one of the world’s leading consultancies, providing design, planning, engineering, sustainability consulting, digital solutions and services, and project management for buildings, cities, transportation, civil infrastructure, water and the environment.

Tanzania Railways Corporation (TRC) is a state corporation established under The Railway Act No. 10 of 2017 with the core mandate of providing an efficient and effective rail transport service, manage and develop rail infrastructure and ensuring rail infrastructure safety and security in Tanzania Mainland.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Dar Al-Handasah Contractor Infrastructure
- - - - Tanzania Railways Corporation Contractor Transport
China Railway Construction Corp. Ltd. Contractor Transport owns China Civil Engineering Construction Corporation Contractor Infrastructure

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

AfDB Team Leader:

Mumina Augustus Wa-Kyendo - Chief Transport Engineer
Email: m.wa-kyendo@afdb.org

Implementing Agency - Tanzania Railways Corporation:

Address: P.O. Box 76959, Sokoine Drive, Dar es Salaam
Website: https://trc.co.tz/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process 

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/ 

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How it works