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An EAC-funded road delayed by Tanzania, blamed on lack of money

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Workers taking part in the construction of the Mtwapa- Kilifi Road at Vipingo area in Kilifi County in this photo taken on December 6, 2022. PHOTO | FILE | NMG

Lack of funds for construction, delays in land acquisition and compensation are among factors cited for expected delays in the completion of a major East African Community Road project, which was billed to boost logistics on the bloc, linking its two main transport corridors.

The $751 million Coastline Transnational Highway project, conceived over a decade ago, covers Bagamoyo-Tanga-Horo Horo on the Tanzania side and Lunga Lunga-Mombasa-Mtwapa-Malindi on the Kenyan side.

It is meant to stimulate regional integration by reducing travel time, facilitating trade and the movement of goods and people across borders, providing an alternative trunk road between coastal cities of Dar es Salaam, Tanga and Mombasa.

The project is being implemented by the two governments in partnership with the African Development Bank (AfDB), African Development Fund, and the European Union. 

In the funding model, the financiers are to fund 70 percent of the project while the governments of Kenya and Tanzania will cover the remaining 30 percent. Already, a tranche of the Phase 1 funds has been disbursed and spent.

According to the EAC Secretariat, detailed designs for the project in the area that has a rich tourism and agricultural potential were completed and submitted to the Secretariat and the national roads authorities in Kenya and Tanzania in June 2015. 

In 2022, President William Ruto and his Tanzanian counterpart Samia Suluhu Hassan committed to ensure that the highwaywas completed on time in order to boost regional integration through reduction in transit times, enhanced trade and cross-border movement of people, opening up of access to touristic attractions, including beaches and the Saadani National Park; providing a direct link between the ports of Dar es Salaam, Tanga and Mombasa, thereby providing alternatives for traders and enhancing competition and efficiency, boosting rural productivity and stimulating the blue economy. 

Construction works are ongoing at the New Mbogolo Bridge along the Mombasa-Malindi Highway on November 28, 2023. PHOTO | FILE | NMG

The project is also expected to reduce congestion, which has been blamed for causing significant tailbacks into the port of Mombasa.

The project’s development objectives are to promote trade and regional integration and to contribute to the countries’ social and economic development, poverty reduction efforts and enhancing tourism by providing improved transport infrastructure. 

The specific objective is to improve road transport services between Kenya and Tanzania by reducing travel time, vehicle operating cost, decreasing traffic congestion, and improving safety in the urban sections along the project road.

The project will have spillover benefits for hinterland countries, the Democratic Republic of Congo, Burundi, Rwanda, Uganda and South Sudan, which depend on Mombasa and Dar es Salaam as gateways to global markets.

The project has several components: Nyali-Mtwapa dual carriageway, including grade separated junctions and Mtwapa-Kilifi -Malindi on the Kenyan side and Tanga-Mkwaja-Bagamoyo, Pangani River bridge and the Wami River bridge on the Tanzanian side. 

The development of this 454km corridor was planned in phases due to its size, the need for review of the studies for some of the sections and the required huge investment, the Secretariat says.

Even though the works are about 75 percent complete in Kenya, delays on the Tanzania side have caused concerns about the potential for missing the 2025 deadline. 

Kenya says it is on course to meet its 2024 deadline, despite its own administrative setbacks that have seen a slower-than-expected completion pace.

According to the latest report and update of the project progress from the EAC, the 50km Tanga-Pangani stretch is “substantially complete with funding from the Government of Tanzania.” 

EAC Secretary Veronica Nduva told The EastAfrican that the section covering Pangani-Tungamaa (26km), Pangani Bridge with a525m span “is progressing well, with funding from AfDB and Government of Tanzania.” 

The report from the EAC Secretariat shows that the works are progressing as planned on the Tungamaa-Mkange (95Km) stretch, but the Mkanage-Makurunge stretch “is still lacking funds for construction.”

The AfDB has released some funds for that phase, the report shows.

The designed road is 229km, out of which 50km from Tanga to Pangani is to be financed by the Government of Tanzania and 120km from Pangani to Tungamaa–Kwamsisi and Pangani bridge is to be financed by an AfDB loan. 

The remaining road section of 59km will be constructed “when funding is obtained.”

The road was to be completed by 2025 as per the funding lines from the AfDB, but this deadline is likely to be missed due to the funding and administrative hitches.

This is not the only regional project that Tanzania has been accused of dilly-dallying on. Two weeks ago, transporters between Mombasa and Bujumbura complained that they were yet to fully utilise the Voi-Taveta/Holili-Arusha-Singida road network, which forms part of the trunk road between the two cities, because Tanzania continues to drag its feet in geofencing the Arusha-Singida stretch.

A road is geofenced when it has inspection points and cargo passing through it can be tracked electronically for taxation and avoidance of dumping of goods.

Geofencing guards against theft and loss of cargo while in transit.

The highway, covering 1,545km, was completed in 2018, and is meant to reduce the transit distance from Mombasa to Bujumbura on the Northern Corridor by 358 kilometres.

It is part of the East African Community (EAC) Regional Road Network Programme meant to boost cargo through Arusha to other EAC member states in the Great Lakes.

Truckers accuse the Tanzania Revenue Authority (TRA) of laxity in geofencing the road, but some observers blame it on the insidious competition for business between Mombasa and Dar es Salaam ports.

The Kenya Revenue Authority (KRA) has geofenced the Voi-Taveta side.

On the Kenyan side, the roadworks, which began in 2021, is complete in a number of sections of the transnational highway, and the 54 kilometres is expected to be complete by the end of this year. 

The Kenyan side was billed to cost $50 million.

The 13.5km Mombasa, Nyali Bridge section started in November 2022. 

The EAC Secretariat says that the Mtwapa-Kwakazengo-Kilifi (40km) “is progressing as planned.” The road is almost complete,save for some areas that were impacted by recent floods that destroyed the road infrastructure in the country.

“The delays in construction are due to delay in relocation of utility services, including Kenya Power poles and waterlines as well as delay in land acquisition and compensation of PAPs (Project Affected Persons),” the report says.

“There is also the Initial slow mobilisation of contractor’s key plant and equipment as well as inclement weather conditions partly due to excessive rains that caused floods which damaged parts of the works.”

Kenya National Highway Authority (Kenha), the agency responsible for construction and rehabilitation of roads, told The EastAfrican that they were confident Phase 1 of the project on the Kenyan side would be competed on schedule.

In Kenya, the impact of the highway has already started being felt as demand for land on the Mtwapa-Kilifi section has increased,with various investors putting up warehouses to cater to the increased business, turning the towns into  budding industrial hubs.

Mwenda Thuranira, who runs a real estate firm, said business is now shifting from Mombasa island to Kilifi, where there is adequate space for expansion, and infrastructure.

“The ongoing construction of the 40km dual highway has opened up the area, prompting investors and businesspeople to build warehouses and malls,” Mr Thuranira said.

Property prices on the highway have doubled, with real estate brokerage firms moving in.

Henry Kiliku, a land agent, said enquiries about land have increased, causing price increases. An acre, which had been going atKsh2.5 million ($19,379) two years ago it's now selling at Ksh4 million ($31,000), he said.