Senior representatives from the Millennium Challenge Account – Tanzania (MCA-Tanzania) and the Resident Country Mission of the Millennium Challenge Corporation (MCC) in Tanzania announced that the first major road construction contract under the MCC Compact was signed today. The competitively awarded contract is for the rehabilitation and upgrading of the 65 km Tanga – Horohoro road to bitumen standard. The total value of the contract was nearly TZS 69.9 billion (US$ 53.8 million) and the winning firm was Sinohydro Corporation Ltd.
This award is the first of six different works contracts for the rehabilitation and upgrading of several Mainland Trunk Roads project under the Compact. Other road segments that will be upgraded include: Tunduma to Laela; Laela to Sumbawanga; Perimho Junction to Mbinga; and Songea to Nantumbo. The award for the Tanga – Horohoro construction work also follows the award of three construction supervision contracts in September 2009. The procurement process for construction of all of the other road segments is now underway simultaneously. Top quality firms from around the world have already passed the first procurement phase and been pre-qualified to participate in the second and final bidding stage, which is expected to result in the award of all five remaining construction contacts for the Mainland Trunk Roads project over the next few months.
MCC Resident Country Director Karl Fickenscher said, “This is truly great news to receive just before the start of the holidays. MCC and our MCA-Tanzania colleagues have been working very hard all year to reach this important project milestone. Up until now, we have been focused on all the necessary preparations, making sure that we have proper technical designs, running a full, open and transparent competition, and working directly with the people who will be affected by the construction to ensure that their views are heard and appropriate compensation and resettlement are arranged. All of this hard work should pay off well in the new year as we launch the construction phase of the Compact.”
The Mainland Trunk Roads project is one of several important transport sector activities underway under the MCC Compact between the Governments of the United States of America and the United Republic of Tanzania that went into effect in September 2008. Other projects in the transport sector include an upgrading of up to 36 kms of rural roads in Pemba and the improvements to Mafia island airport. The MCC Compact also includes major components that will provide significant assistance in the energy and water sectors. The American people will provide a total of $698.1 million in U.S. assistance under the Compact through September 2013.
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