Tanzania: Construction of New Airport Terminal 65 Per Cent Complete
Posted on : Saturday , 21st January 2017
Construction of Terminal Three at the Julius Nyerere International Airport (JNIA) has been completed by 65 per cent and the government has promised to use funds from domestic revenue sources to complete construction work of Phase II of the project which will cost about 290bn/-.
Upon completion, the new terminal is meant to meet the future growth on international arrivals by extending capacity to 6 million passengers per annum in a total terminal area of 60,000 square meters.
"The remaining phase will be completed using our own funds, people should stop worrying about it as it is not the first project to be financed by the government," the Minister for Works, Transport and Communications, Prof Makame Mbarawa, said during his tour at the JNIA Terminal Three yesterday.
Prof Mbarawa said the total cost of the project was about 560bn/- and as the contractor has commenced construction work of Phase II, the government will make sure it disburses funds at a required time once the contractor submits the required certificates for payment.
He further said the construction work was expected to be completed in December, while the government was also implementing other rehabilitation projects in 13 airports countrywide, including Songwe, Kilimanjaro International Airports (KIA) and Sumbawanga.
The minister said in 2014 the total flow of passengers at JNIA reached 2.5 million beyond its normal capacity of 1.2 million. Terminals 1 and 2 will be used for domestic flights, which grew to 7.4 per cent in 2014.
Earlier, the Acting Tanzania Airports Authority (TAA) Director General, Mr Salim Msangi, said Phase 1 of the scope of work comprises construction of the main terminal building, to facilitate 3.5 million annual passengers as well as parking lots, access roads, platforms and a taxiway.
"Upgrades on the ground lighting system, existing taxiways, secondary runway and apron and improvements at the drainage system and environmental situation in the areas surrounding the airport are included in Phase 2," he elaborated.
Mr Msangi further said the project was earlier expected to be completed in August 2016 but delays in submission of funds amounting to more than 290bn/- for Phase II has been hampering construction works at the terminal.
He also said that another reason for the delay of the project was the new Value Added Tax Act, which removed exemption on imported construction material to be used in the project, contrary to what has been stipulated in the contract in the first place.
Expounding further, he said the government has agreed to pay VAT on the materials in which up to January 19, Treasury Voucher and Cheque (TVC) reached about 1bn/- for the payments. He said the delay hindered the completion of the project at the set time.
Moreover, he said, from December 2016 to date, the government owes the contractor about 22bn/- and consulting engineer a total of 839,928.88 US dollars and 229.9m/- as arrears for seven months from June to December 2016.
However, he said, the Ministry responsible for works has requested the money from the Treasury but cautioned that delays to issue the funds on time would hinder timely completion of project.