BACKGROUND OF REFORMS IN ROADS SUB-SECTOR
IN TANZANIA
Up until 1970's the economy
of the country performed well with both
agriculture (3.3% p.a.) and industry growing
at moderate rates. Road Maintenance was
well managed and resources were adequate.
In 1968 for instance, funds were allocated
for road maintenance at the rate of US$
800 per km for bitumen roads. For Engineered
gravel and earth roads, the allocations
were US$ 400 per km and US$ 230 per km respectively.
By early 1980's the gap between public expenditure
and aggregate supply widened, the current
account deficit was about 15% of GDP, inflation
was about 30% and the exchange rate was
substantially overvalued.
With these difficulties,
the level of public expenditure allocated
for maintenance declined such that by 1990,
only about 15% trunk and 10% of the rural
roads respectively were in good condition.
Since 1998 the Tanzanian Road Sector has
been undergoing far-reaching reforms whereby
the Parliament enacted the Roads Tolls (Amendment)
No. 2 Act 1998 that established the Roads
Fund and the Roads Fund Board. The Executive
Agencies Act, 1997 established an executive
agency, the Tanzania National Roads Agency
(TANROADS), which has the responsibility
of managing the Trunk and Regional roads
in Mainland Tanzania.
It is considered that the
ongoing reforms will help alleviate to a
great extent the institutional problems
of inadequate funding for road maintenance;
cumbersome administrative and procurement
procedures; unmotivated staff etc., which
in the past led to considerable project
delays; cost overruns; extra backlog maintenance
works; and loss of confidence from the road
users as well as the road sector donors.
The core activity in the
roads sector is traditionally engineering,
consisting mainly of design, construction
of new roads and maintenance. A total of
85,000 kilometres of roads estimated in
1998 to have an asset value of USD 1,399
million have been constructed in mainland
Tanzania. While design and construction
are dominated by engineering issues, maintenance
of this extremely valuable public asset
is essentially a management problem. Indeed
maintenance of our road network has been
and still is a big problem.
Roads, like any piece of
real estate, are an asset. Assets must be
maintained to avoid greater costs to the
economy brought about by the need for eventual
reconstruction. Road maintenance is an essential
part of any country's transport infrastructure
programme and vital to the economy. Poor
road maintenance has a negative impact on
the economy. The losses to the economy through
the roads sector are estimated at Tshs.
603 billion (equivalent to USD 564 million)
annually, which is about 6.3% of our Gross
Domestic Product (GDP). Losses are through
increased Vehicle Operating costs and increased
Travel times. Also more money is needed
for interventions in the long term for the
roads due to poor maintenance.
Tanzania's vision 2025 in
respect of road sector envisages a plan
to undertake an economic transformation
of Tanzania that will enable it to move
from the category of least developed countries
to a medium income country. In the process
the transport sector is expected to have
an extensive road network that is well maintained,
serving all parts of the country as well
as neighbouring countries.
In order to achieve a higher
rate of economic growth and reduce current
poverty levels, Tanzania needs to develop
reliable, effective, efficient, safe and
fully integrated roads infrastructure which
best meets the needs of travel and transport. |