Tanzania’s state-owned Reli Assets Holding Company (RAHCO) announced that Turkish company Yapi Merkezi Insaat VE Sanayi was awarded a USD 1.92 billion contract for the construction of a new electric railway line from Morogoro to Makutupora, in central Tanzania.
“Fifteen contractors bought bid documents, but after careful assessment of the bids, Yapi Merkezi met both the technical and financial requirements,” RAHCO said.
The tender on the construction of the 336 km railway line was launched in November 2016 and will be constructed on a parallel alignment to the existing metre gauge line.
The standard gauge line is expected to be completed within 36 months and will allow a capacity of 35 tonne axle load, with an estimated freight volume of 17 million tonnes per year.
This is company’s second deal in Tanzania, as this February it was signed a USD 1 billion contract within a JV formed with Mota-Engil, for the construction of 202 km of line linking Dar es Salaam and Morogoro. This is the first section of the railway that will connect Dar es Salaam to the neighbouring countries of Rwanda and Burundi. The project involve the construction of a 2,200 km of railway line connecting the tree countries.
By the end of the year, RAHCO intends to award three additional contracts for the construction of 700 km of railway. In total, the government will invest USD 14 billion over the next 5 years to build a 2561 km standard gauge network.
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