Tanga, May 12, 2025 – The Minister of Works, Abdallah Ulega, has announced the termination of a road construction contract awarded to the Chinese firm China Railway 15 Bureau Group, following the company’s failure to meet agreed project timelines and obligations, despite having received full payment from the government.
The contract involved the construction of a 95.2-kilometer section of the Tanga – Pangani – Mkwaja – Bagamoyo (Makurunge) road, specifically the Tungamaa – Mkwaja – Mkange stretch in Pangani District.
“This contractor has failed the people of Tanga,” said Minister Ulega. “We have already paid him over TZS 47 billion, yet only 48% of the work is complete.He is behind schedule, has not mobilized equipment or personnel as required, and cannot be trusted to complete the job.”
Ulega revealed that due to continued underperformance, the government has revoked 25 kilometers of the contractor’s scope of work and instructed the Permanent Secretary of the Ministry of Works, Ambassador Eng. Aisha Amour, to re-tender this portion of the project immediately.
“The government cannot continue tolerating incompetence. These 25 kilometers will now be part of a new tender that also includes 70 kilometers from Mkange to Bagamoyo (Makurunge). We want a contractor who can deliver—starting immediately,” Ulega emphasized.
According to the Minister, the decision to partially terminate the contract rather than cancel it entirely was made to avoid prolonged delays that could stretch up to a year, affecting thousands of road users and stalling regional development.
“If we had scrapped the whole contract, we’d be waiting six to twelve months for a new contractor to begin,” Ulega explained. “That would be a huge loss for the government and for the people of Tanga.”
He further announced that China Railway 15 Bureau Group will be required to compensate the government for the delays caused, and instructed ministry legal teams to begin a contractual review to determine penalties.
“We will not let this go without accountability,” Ulega warned. “The contractor will pay for the delay. Our legal teams are already analyzing the agreement to determine the next steps.”
In addition, Ulega has directed that the contractor be blacklisted and included on the government’s registry of underperforming contractors, to prevent similar occurrences in future projects.
“We must learn from this,” he said. “This company should not be awarded any future projects in Tanzania until they prove they can meet basic professional standards.”
For the remaining 70 kilometers still under the contractor’s responsibility, Ulega has tasked the Tanzania National Roads Agency (TANROADS) with ensuring that the firm works day and night to complete the road to asphalt level by October 2025.
“TANROADS must take full responsibility. If they fail to monitor this contractor effectively, they too will be held accountable and replaced,” the Minister warned.
Speaking during the same inspection tour, TANROADS Project Manager, Eng. Julius Msofe, confirmed that as of now, the project stands at 47.82% completion, despite the contractual timeline having expired on March 31, 2025.
“The contract was set for 36 months, but we are far behind schedule,” said Eng. Msofe. “We acknowledge the delay and are working on accelerating progress under the Minister’s new directives.”