Tanzania has cleared all outstanding payments owed to contractors on the Standard Gauge Railway project along the Makutupora-Tabora section, according to the Minister for Transport. Professor Makame Mbarawa said during an inspection tour in Tabora Region that no contractor has any remaining claims against the government, and that the project faces no funding challenges. He credited President Samia Suluhu Hassan for allocating 3.67 trillion Tanzanian shillings last year to support the continuation of construction work.
The minister explained that previous delays in payments were not caused by lack of government funds, but rather by the contractor's difficulty in preparing and submitting the required payment documents known as Interim Payment Certificates (IPCs) on time. He said the contractor had struggled with the capacity to plan and execute work at the required pace and to produce sufficient IPCs in line with the amount of work completed. However, he noted that recent work arrangements and demonstrated contractor capacity have created improved prospects for faster project implementation.
According to Professor Mbarawa, a payment claim with a November 6 deadline had been submitted, and the government would make payment before that date expired. He stressed that fund availability alone does not guarantee payments, as contractors must still fulfill required procedures. The government expects construction to continue at the required pace to meet the scheduled timeframe, with the aim of reaching final construction stages on the third section by 2028, enabling trial operations of the modern railway.
Tanzania Railways Corporation Director General Machibya Shiwa said the corporation believes that dividing the project into five sections and strictly managing the implementation schedule will enable completion in line with set objectives. Once finished, the modern railway is expected to provide transport services between Dar es Salaam and Mwanza, improving the efficiency of passenger and freight transportation across the country.
For savers and business owners in Tanzania, faster SGR completion could eventually reduce transport costs and improve supply chain efficiency, though benefits depend on the project staying on schedule and remaining within budget.