President John Magufuli Urged Bus Rapid Transit Firm to Make Profit During Launch
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Tags: Dar es Salaam City Council, Dar es Salaam Rapid Transit, President John Magufuli, Rapid Transit
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President John Magufuli yesterday issued a five-day ultimatum to Dar es Salaam City Council (DCC) to decide on the use of 5.8bn/- from Simon Group for the 51 per cent stake in Usafiri Dar es Salaam (UDA).
He also tasked the management of UDA Rapid Transit (UDART) to generate profit from the project to repay back the 317bn/- World Bank’s soft loan that financed its construction. “This project should make sufficient profit to implement other development projects.
If it suffers loss, you should understand that the loss will not belong to the government,” he cautioned UDART management, warning against the use of the generated profit to establish other unnecessary subsidiary companies for individual interests.
The president was speaking at the official launch of multibillion shilling UDART infrastructure and transport services in Dar es Salaam, the country’s most populous city.
The government and World Bank co-funded the 403.5bn/- project, releasing 86.5bn/- and 317bn/-, respectively. Dr Magufuli was curious to know the amount of profit that UDART has created since it started offering the transport services last year, but the amount could not be immediately unveiled. He directed that the report be handed over to him immediately after the launching event.
“Before I leave this place, I want the ministers responsible to work on the report … I want to know how much profit you have made,” he directed.
President Magufuli’s directive to DCC on the 5.8bn/- came in response to reports that the money that Simon Group had paid since March, last year, is kept idle because the three municipal councils of Kinondoni, Ilala and Temeke have failed to agree on its expenditure.
“I give you five days to decide on how to spend the money and the expenditure must be on the interest of Dar es Salaam residents.
Should you fail to decide within those five days, I will sit with Minister Simbachawene and decide on your behalf,” he said. Minister of State in the President’s Office, Regional Administration and Local Government, George Simbachawene, said since last year, the municipal councils have been arguing on the use of the money.
“Some propose that the money be divided among the three municipal councils but, I for one, think that it could be wisely invested,” Mr Simbachawene argued, suggesting for the DCC to invest the money in construction of upcountry bus stands at Mbezi Luis, Boko, Dawasco and Kongowe to generate profit.
Speaking over the launched UDART infrastructure and services, President Magufuli described the project as a lasting solution to the city’s traffic jam.
It was found in 2013 that Tanzania loses 4bn/- daily due to traffic congestion. The World Bank’s Vice-President for Africa, Mr Makhtar Diop, said the DART project is not only a strategy to improving transport infrastructure, but most importantly delivery of quality services to the people.
He assured the country of the Bretton Woods institution’s continued support to finance the project’s next phases, scheduled to start soon.
