Tanzania Orders Termination of Shoddy Kyerwa–Omurushaka Road Contract Over Poor Performance

By Mutayoba Arbogast

Tanzania has ordered the termination of a major road construction contract after prolonged delays and poor performance by the contractor, raising fresh concerns over accountability in public infrastructure projects.

In a decisive move to rescue the stalled Kyerwa–Omurushaka asphalt road, the Minister for Works, Hon. Abdallah Ulega, has directed the Tanzania National Roads Agency (TANROADS) Kagera Region to begin all procedures to terminate the contract with Chinese firm Shandong Luqiao Co. Ltd by February 28.

The directive was issued during the minister’s inspection tour on January 31, after he observed minimal progress on the 50-kilometre road project, which was initially scheduled for completion by June 2027.

Only 5.4% Progress After 19 Months

Despite being 19 months into the 36-month construction period, the project has achieved just 5.4% completion. Construction work has been limited to a three-kilometre stretch from Nyakatuntu, even though more than half of the allocated project time has already elapsed.

Briefing the minister and local leaders, TANROADS Kagera Regional Manager, Engineer Samwel Joel Mwambungu, revealed repeated non-compliance by the contractor.

“We conducted two evaluation meetings, but the contractor failed to attend both,” Mwambungu said. “We also demanded accountability for the 9 billion Tanzanian shillings already paid, but we have received no response.”

The road project is valued at 94.3 billion Tanzanian shillings, making its stagnation a major concern for both government officials and residents who depend on the route for trade and mobility.

Regional Leaders Voice Anger Over Public Funds

Kagera Regional Commissioner Fatuma Mwassa expressed strong frustration, accusing the contractor of wasting public resources and undermining confidence in government development efforts.

“This is not the government’s failure,” Mwassa said. “These contractors take our money, demand payments in dollars, and then disappear. Public trust is being destroyed.”

She strongly opposed awarding the firm another contract for the Murongo road project, stating:

“They have already taken 9 billion shillings and delivered only 20% equipment mobilization after consuming over 50% of the project time. We need contractors who give value for money.”

Concerns Raised in Parliament

The issue has also been raised at the national level. Kyerwa Constituency MP Khalid Nsekela previously questioned the delays in Parliament, urging the government to take immediate corrective action.

Mwassa further highlighted a broader pattern of underperformance by some Chinese contractors in the region, including projects under the Tanzania Rural and Urban Roads Agency (TARURA). She cited cases where contractors received advances of up to 5 billion shillings, yet project sites remain at less than 1% completion.

“Roads in China are excellent, yet here funds are diverted elsewhere,” she said. “Local contractors now outperform some foreign firms. If not for diplomatic considerations, law enforcement would already be involved.”

Government Signals Tougher Stance on Contractors

The minister’s directive signals a hardening government position against underperforming contractors, particularly on large, taxpayer-funded infrastructure projects.

TANROADS officials confirmed that termination procedures are underway, with plans to re-tender the project to a more capable and responsive contractor. The move is expected to restore momentum on a road seen as vital to connectivity, trade, and economic growth in Kagera Region.