Africa Growing Together Fund provides $42 million loan for Dodoma City Outer Ring Road Construction Project (Linked to Umbrella Record ID#36104)

Africa Growing Together Fund provides $42 million loan for Dodoma City Outer Ring Road Construction Project On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Record ID#36104). The purpose of this $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024.

The AGTF is sponsored by the PBOC and the administered by AfDB.

Then, on August 19, 2019, AGTF signed an $42 million loan agreement (ID#5050200000801) with the Government of Tanzania for the Dodoma City Outer Ring Road Construction Project.

On the same day, the African Development Bank (AfDB) issued a $138 million loan (ID#2000200003901) to the Government of Tanzania for the same project.

The purpose of the project is to improve transport within Dodoma City and decongest the city by constructing a new dual-carriageway Outer Ring Road (measuring 110.2 km in length).

The project has two road construction subcomponents (or ‘lots’): Lot 1: Nala-Veyula-Mtumba-Ihumwa Dry Port (50.2 km); and Lot 2: Ihumwa Dry Port-Matumbulu-Nala (60.0 km).

The project also includes several complementary interventions, including: (i) consulting services related to the road works and road studies; (ii) various specially-tailored social infrastructure benefitting women and youth; (iii) institutional capacity building; (iv) urban development related activities aimed at transforming Dodoma into a sustainable City in Tanzania, development of a water and sanitation master plan for Dodoma; and (v) compensation for Project Affected People (PAPs).

Significant expected outcomes include: (a) improved overall accessibility to, around and from Dodoma (i.e., increased ability of businesses to provide goods and services, and people’s ability to access education, employment and services); (b) a reduction in transportation costs (including travel time, vehicle operating costs, road and parking facility costs, accident and pollution damages); (c) improved urban planning and management; (d) increased economic productivity, employment generation and, in turn, regional economic development; and (e) a boost to regional integration – a crucial national and continental development objective.

The immediate expected beneficiaries of the project include the residents in Dodoma City, its suburbs and the surrounding rural areas with a population of approximately 2.4 million people (2018), of which about a third (0.8 million people) live in the city.

CCECC is the contractor responsible for implementation of Lot 1 and AVIC INTL Project Engineering Company is the contractor responsible for implementation of Lot 2. The first AfDB and AGTF loan disbursements took place on November 29, 2019.

Civil works contracts were signed by the Tanzania National Roads Agency (TANROADS) and China Civil Engineering Construction Corporation (CCECC) and AVIC INTL Project Engineering Company on July 10, 2020 for Lot 1 and on July 4, 2020. The commercial contract for CCECC is TZS 100,840,778,592 (excluding VAT).

However, advance payments have not yet been requested by the contractors. The project is planned to be implemented over a four-year period (including the Defects Liability Period).

The project was scheduled to be completed within 39 months, including a 3-month mobilization period, commencing on 8 September 2021 and a completion date of 7 December 2024.

The Tanzania National Audit Office's Annual General Report on Audit of Development Projects for FY 22-23 found that inadequate feasibility studies on soil properties are leading to a cost overrun of TZS 3.41 billion.

According to the most recent Implementation Progress and Results Report (IPR), the project is currently 81.54% complete.