Minister of State, President�s Office, (Social Relations and Coordination), Stephen Wasira
Presenting the state of the national economy for 2011/12 and National Development Plan for 2012/13 in Parliament here yesterday, the Minister of State, President’s Office, (Social Relations and Coordination), Stephen Wasira, said domestic resources earmarked to finance strategic investment projects amounted 1.13trn/-, while 1trn/- has been allocated for other projects that are indispensable for the country’s economic growth.
The minister said development projects intended to be implemented in the 2012/13 financial year are divided into two categories.
The first is strategic investments which are large and their implementation is expected to bring impacts on other economic activities. These are earmaked to achieve the targets of Tanzania Development Vision 2025, he noted.
The second category concerns other essential development projects in key economic areas whose implementation is expected to facilitate inclusive economic growth, he said.
He said Tanzania’s real GDP grew by 6.4 percent in 2011 against the previous year’s 7 percent, the slowdown largely attributed to drought conditions in some parts of the country which adversely affected agricultural production.
Despite the slowdown in overall growth, communication, financial intermediation, construction and education, subsectors recorded a higher growth rate ranging between 6 percent and 19 percent, he said.
In identifying strategic investment projects, the basic criteria taken into consideration included those that have quick win results as well as large multiplier effects, minister Wasira said.
“Projects that leverage private sector investment, generate employment opportunities, reduce inflation and those with the potential to increase government revenue,” he explained.
According to him, major strategic projects that will be implemented include construction of the Kurasini Logistical Trade Hub and strengthening the central railway line (Tabora-Kigoma, Isaka-Mwanza) covering 197 kilometers.
Other projects are maintenance and improvement of the Kidete-Gulwe railway line, construction of Bahi Kintinku bridge and maintenance and rehabilitation of existing Tanzania Railway Line (TRL) locomotives.
Funds have been allocated for finalising a feasibility study of railway construction in strategic areas namely Mtwara-Mbambabay , Mchuchuma and Liganga railway line, Dar es Salaam–Isaka–Kigali, Keza–Geita–Msongati railway line and the Tanga-Arusha–Musoma railway line, he said.
He explained that for energy and minerals projects to be implemented are construction of the regional mining offices at Mtwara, Dodoma, Geita and Arusha, construction of Tanzania Mineral Audit Agency and rural electrification agency offices and strengthening of exploration and mining research institutions.
Wasira said in air and marine transport the projects include rehabilitation of Kigoma, Mafia, Tabora, Songwe, Mpanda, Arusha and Bukoba airports, development of Berth No 8 on Lake Tanganyika and maintenance of government aircrafts.
In the weather forecasting area the government will purchase radar for the Tanzania Meteorological Agency (TMA) and provide modern equipment to meteorological information centres.
On labour and employment, he said, more support will be given to micro credit schemes to enable them to advance soft loans to youth, women and special groups and so foster opportunity for self employment.
He said the government will strengthen systems for inspection at work place, dispute and conflict resolution, management and control of social security funds and job creation.
On possible risks that are likely to emerge during the implementation of the plan, he said they have been taken into account.
The risks that may slow down the pace of implementation, he said, include delayed disbursement of programme grants and concessional loans, delay in concluding contract with investors and partners.
In addressing the risk, the government will undertake coping strategies including working to reduce dependence by improving revenue collection, especially from non tax sources, reduce unnecessary expenditure, continue with formalisation of informal sector, fasttracking the sovereign rating process and strengthening disaster preparedness and surveillance system.
However, he said monitoring and evaluation will be done by the President’s Office, Planning Commission in collaboration with respective sectors.
The Prime Minister’s Office, Regional Administration and Local Government will monitor and evaluate projects at regional and local government levels, he said.