Yapi Merkezi has decided to join the government of Tanzania in the search for funds in order to finance the Tanzania Standard Gauge Railway project. The deficit of the needed funds sums up to a total of $1.8 billion. Being the major contractor of the project, Yapi Merkezi has managed to set up the four lots of the SGR which include setting up a total of 1225 kilometers of the new 1435mm-gauge railway that runs all the way from Dare es Salaam to Isaka region.
Yapi Merkezi was part of the team that made a visit to Spain, Sweden, and Poland in order to participate in the financing discussions of the Tanzania Standard Gauge Railway project. The Turkish firm participated in order to provide adequate support and assistance to the delegation made by the government of Tanzania and also the present export credit agencies that were a part of the project.
Indulged in a partnership with Mota-Engil Africa, the Turkish firm was awarded lots 1,2, and 3 of the Tanzania Standard Gauge Railway project covering a total distance of 1090 kilometers running all the way from Dar es Salaam to Tabora in the year 2018. Later on, the firm signed a $900 million contract in the month of July 2022. This funds were to be utilized for the construction of Lot 4 which covers a distance of 165kilometres.
Also read: $3.24 Billion to be Invested in Tanzania SGR Construction by Spain
Tanzania Standard Gauge Railway Project Completion Date
The efforts of securing the $1.8 billion financial support of lot 3 and lot 4, have currently managed to secure only a total of $400 million. Currently lot 1 and lot 2 of the SGR are 98% and 95% complete respectively. Construction works on both of these projects are expected to be done by the start of the year 2026. The remaining lot 3 and lot 4 are also expected to be done also by the start of the year 2026.
Arioglu, who is a staff of Yepi Merkezi, stated that the construction works of the project were delayed as a result of the Covid-19 pandemic and also the invasion of Ukraine by Russia which impacted on the supply of materials for the construction of the project. Moreover extensive rainfall in some regions in which the railway is expected to pass also delayed the construction works.
Currently, lot 5 which was awarded to both China Civil Engineering Construction and China Railway Construction Company has attained 36% completion status.
The African Development Bank (AfDB) has revealed that it shall contribute a total of $US3.05 billion toward the financing of Lot 6 which runs from Tabora to Kigoma and also Lot 7 which runs all the way from Uvinza to Malagarasi in order to facilitate the connections of the Tanzania Standard Gauge Railway project with DRC.
