Press Release
Tanga- Horohoro Road Project Advances to Next Stage
August 26, 2009
On Thursday, August 20th, officials from the Millennium Challenge Account – Tanzania (MCA-T) and the Tanzania Roads Authority (TANROADS), together with regional authorities, held a public bid conference in Tanga with representatives of several firms which are competing to win the contract to rehabilitate and improve the road from Tanga to Horohoro. The MCA-T and TANROADS personnel then conducted an official site tour of the entire 68 km length of the road with the bidders. According to the Millennium Challenge Corporation (MCC) Resident Country Director, Karl Fickenscher, “this event represents the achievement another important milestone for the Tanga-Horohoro road project.” Following international best practices of openness and transparency in the competitive procurement of large infrastructure projects, MCC and MCA-T use a multi-phase procurement process. In the first phase, firms from around the world are invited to demonstrate that they have the experience, skill, and resources available to complete the planned project on time and on budget. This is done via a solicitation that is widely advertised both in Tanzania and abroad. There are no “buy America” provisions or other aspects of tied aid in MCC-financed procurements. Those firms that successfully pass this initial threshold are considered “pre-qualified” and then allowed to proceed to the next round of bidding. According to Mr. Fickenscher, “by structuring the competitive procurement process in this way, MCC and MCA-T seek to ensure that there is increased competition among only the best firms for each project, thereby increasing the chances of speed and success.” Each of the firms that attended the bid conference and site visit in Tanga had already passed the initial phase of competition and were “pre-qualified” to submit their final bids, which are currently due in September.
The Tanga – Horohoro road is only one of several trunk roads that are being rehabilitated and upgraded under the “Mainland Trunk Roads” project as part of the Millennium Challenge Compact signed by the former U.S. President Bush and President Kikwete in 2008. Other roads projects that are also simultaneously underway include a total of 224 kms from Tunduma, through Laela and on to Sumbawanga, and an additional 139 kms of highway from Mbinga to Peramiho junction near Songea and then again east again to Nantumbo. Through the MCC Compact the American people are also providing financial support for several other projects in the Transport sector, including the rehabilitation of up to 36 kms of rural roads on Pemba, the upgrading of Mafia island airport, and the provision of technical assistance to TANROADS to enhance their capacity for operation and maintenance of roads throughout Tanzania. The Compact also includes support for infrastructure projects in the energy and water sectors. A total of $698.1 million in U.S. assistance will be provided under the Compact over a period of five years (2008-2013).