The Government has ordered the termination of a construction contract awarded to a Chinese firm after persistent delays in the construction of the Omurushaka–Kyerwa road in Kagera Region, citing poor performance and misuse of public funds.
Minister for Works, Abdallah Ulega, directed authorities to immediately begin procedures to cancel the contract with Shandong Luqiao Group, which was awarded the 50-kilometre road project but has delivered minimal progress despite substantial payments.
He further instructed that the company be blacklisted and barred from receiving future road construction contracts in Tanzania due to its unsatisfactory track record.
“I have directed TANROADS and the Director of Roads at the Ministry to initiate the legal process of terminating this contract within one month so that legal action can be taken. We cannot allow taxpayers’ money to be wasted in this manner,” Ulega said.
The Minister issued the directive during a public meeting in Kyerwa District after inspecting the project’s implementation. He stressed that all legal procedures must be strictly followed to protect the Government from costly litigation arising from poor legal advice.
Ulega also warned that legal officers whose negligence or poor guidance leads to financial losses for the Government would face disciplinary action, underscoring the Government’s commitment to accountability and value for money.
Earlier, Kagera Regional Commissioner Fatma Mwasa and Kyerwa Member of Parliament Khalid Nsekela expressed dissatisfaction with the slow pace of the project, questioning why the contractor continued to receive new assignments in the region despite a history of delays.
According to TANROADS, the contractor has already been paid more than Sh9 billion. However, although the project was expected to have reached at least 50 per cent completion, actual progress stands at only about five per cent.
To ease transport and trade for residents, Minister Ulega directed TANROADS to urgently seek a capable local contractor to rehabilitate the road within one month as an interim solution while legal processes continue.
He further instructed that TANROADS project supervisors be investigated to establish whether negligence or poor oversight contributed to the delays, noting that appropriate action would be taken against any officials found responsible.
Speaking at the same meeting, Regional Commissioner Mwasa said the contractor had also performed poorly on other projects in the region, including those under TARURA, and urged the Government to terminate all such contracts and permanently exclude the firm from future tenders.
Presenting a technical update, TANROADS Kagera Regional Manager, Eng. Joel Mwambungu, said the project is funded by the Government at a cost of TZS94 billion and has reached only 5.43 per cent completion.
He added that the project is behind schedule by 46.26 per cent, with expected progress at 51.69 per cent compared to the actual achievement.
The Government’s move has been welcomed by residents, who say decisive action is necessary to protect public resources and ensure timely delivery of vital infrastructure needed to support economic activities and improve daily life in Kyerwa and surrounding areas.