- $372,776,000Original Compact Project Amount
- $405,402,512Total Disbursed
Estimated Benefits
| Time | Estimated Economic Rate of Return (ERR) over 20 years | Estimated beneficiaries over 20 years | Estimated net benefits over 20 years |
|---|---|---|---|
| At the time of signing | 17.2 percent | 1,624,551 | $187,800,000 |
Estimated benefits corresponds to $374.7 million of project funds, where cost-benefit analysis was conducted.
Project Description
In Tanzania, poor transport infrastructure constrains the development of agriculture, industry and commerce, and hinders access to essential social services. At the time of compact signature, less than seven percent of Tanzania’s road network was paved; the other routes were made of gravel or earth. The Transport Sector Project addressed necessary improvements to Tanzania’s road network, which serves a widely dispersed population, by investing in infrastructure to reduce transport costs, increase cash crop revenue and facilitate access to social services. Rehabilitation of road infrastructure was intended to expand connectivity across Tanzania and improve market and other linkages both domestically and with neighboring Kenya and Zambia. The project also upgraded the Mafia Island Airport to allow for easier, more efficient and safer access to the island. At compact end, MCC financed the completion of 150 kilometers of roads, which includes the installation of drainage measures and accompanying signage, as well as designs and feasibility studies for the original target of 433 kilometers. All 433 kilometers were completed by January 2015 using funding from the government to complete sections that were not finished at compact end. On Mafia Island, 1.6 kilometers of runway and taxiways were refurbished.
Evaluation Findings
MCC is conducting performance evaluations of the Zanzibar Rural Roads, the Mainland Trunk Roads and Road Maintenance Activities for both Zanzibar and mainland Tanzania. The evaluations will use the Highway Development and Management (HDM-4) Model and potentially the Roads Economic Decision (RED) Model to assess the condition of the upgraded roads and evaluate the sustainability of these investments in the context of the roads maintenance regime. Both evaluations are expected to be available in December 2018.
MCC is also conducting a performance evaluation for the Mafia Island Airport Activity. This evaluation will seek to assess the condition and maintenance of the Mafia Airport runway post-compact to understand the residual life of the investment. It is expected to be available in December 2018.
Key performance indicators and outputs at compact end date
| Activity/Outcome | Key Performance Indicator | Baseline | End of Compact Target | Quarter 1 through Quarter 20 Actuals (as of Dec 2013) | Percent Compact Target Satisfied (as of Dec 2013) |
|---|---|---|---|---|---|
| Mafia Island Airport Upgrading Activity | Runway surfacing complete (%) | 0 | 100 | 100 | 100% |
| Mainland Roads Activity | Kilometers of roads completed (taken over) | 0 | 433.2 | 190 | 44% |
| Percent disbursed on construction contracts | 0 | 100 | 92.5 | 93% | |
| Surfacing Complete: Namtumbo - Songea (%) | 0 | 100 | 100 | 100% | |
| Surfacing Complete: Peramiho - Mbinga (%) | 0 | 100 | 100 | 100% | |
| Surfacing Complete: Tanga - Horohoro (%) | 0 | 100 | 100 | 100% | |
| Surfacing Complete: Tunduma - Sumbawanga (%) | 0 | 100 | 70.9 | 71% | |
| Road Maintenance Fund Activity | Road Maintenance Expenditures: Mainland Trunk Roads (%) | 79 | 95 | 72 | -43% |
| Road Maintenance Expenditures: Zanzibar Rural Roads (%) | 75 | 95 | 82 | 35% | |
| Zanzibar Rural Roads | Kilometers of roads completed (taken over) | 0 | 35 | 0 | 0 |
| Pemba: Percent disbursed on construction contract | 0 | 100 | 70 | 70% | |
| Surfacing Complete: Pemba (%) | 0 | 100 | 60 | 60% |
The overall level of funding the government dedicated towards mainland trunk roads did not increase, remaining stable during the life of the compact, while the percentage of funding decreased in the short term. During the compact period, the government oversaw a dramatic increase in road construction, coupled with a reclassification of national and rural roads, which reduced the percent of funding in proportion to the entire roads network.