Local firm wins $1.9 billion railway contract in Tanzania

Published 02.10.2017 19:07
Updated 03.10.2017 14:25

Turkey's Yapı Merkezi, which is ranked 78th on the list of world's largest contractors, has been awarded a $1.9 billion contract for a mega project in Tanzania.

Having undertaken a $1.2-billion high-speed train project with its Portuguese partner in February, Yapı Merkezi has now single handedly won the contract for the second stage of the same project. It is now set to become the sole contractor for the second phase of construction in the project.

Tanzanian state railway company, Reli Assets Holding Company (RAHCO) in a statement said, "After an evaluation of the bids, Yapı Merkezi met the technical and financial requirements for the project."

The state railway received bids from 15 different firms.

The second phase of the construction will connect Morogoro and Makutupora with a 422-kilometer line. Once completed, the line will be capable of transporting more than 17 million tons of cargo annually.

Yapı Merkezi will have only 36 months to complete and put the line in service.

The Turkish construction giant won the bid for the 300-kilometer-long first phase between Dar es Salaam and Morogoro in February along with a Portuguese partner, Mota-Engil Engenharia, for $1.2 billion.

After a contract signing ceremony for the second phase, Yapı Merkezi Deputy Chairman Erdem Arıoğlu told Anadolu Agency (AA) that the contract was one of the largest bids ever won by a Turkish firm abroad.

"We will single handedly build a near 336-kilometer-long railway network, complete with infrastructure and technology," he said.

Claiming that more than 1,000 Turkish engineers and staff will work on the project, Arıoğlu noted that Yapı Merkezi has already constructed railways and light-rail systems in Ethiopia, Senegal, Morocco, Algeria, and Tanzania.

Drawing attention to President Recep Tayyip Erdoğan's support for such projects, he said the company has been working on projects in different countries, from the shores of the Atlantic Ocean all the way to those of the Indian Ocean.

The contract for the first stage of Dar es Salaam and Morogoro railway was signed during President Erdoğan's visit to Tanzania in late January.

Also the contractor of the Eurasian Tunnel, Yapı Merkezi has worked on infrastructure and highways projects in many different countries.

As an extension to the Dar es Salaam and Morogoro railway, the second stage will pass through the capital city of Dodoma and connect Morogoro and Makutupora.

The project design will allow speeds up to 160 kilometers per hour. The project work will also include all design works, infrastructure building, rail laying, signalization, communication systems, spare part manufacturing, electrification and staff training.

Furthermore, the railway project is expected to boost Tanzania's trade and tourism extent. It also will enable landlocked Uganda and the Democratic Republic of Congo to export their rich minerals and mining resources.

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