Project Phase 1 Project Information Memorandum

United Republic of Tanzania Prime Minister’s Office for Regional Administration and Local Government (PMO-RALG) DART Agency

Dar Rapid Transit (DART) Project

Phase 1

Project Information Memorandum Final version

May 2014

Transaction Advisors: With support from:

Dar Rapid Transit (DART) Project – Phase 1

Project Information Memorandum

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May 2014

Disclaimer This Project Information Memorandum (PIM) has been prepared by RebelGroup International B.V. and VELMA Law (the “Transaction Advisors”) on behalf of their client, the DART Agency, pursuant to their mandate as Transaction Advisors to the DART Agency for the procurement of bus operation, fare collection and fund management services for the development of Phase 1 of the DART system (the “Project”). This PIM does not purport to be all-inclusive or to contain all of the information that a prospective participant may consider material or desirable in making its decision to participate in the tender. No representation or warranty, express or implied, is made, or responsibility of any kind is or will be accepted by the Transaction Advisors, the DART Agency, the Government of the Republic of Tanzania or any of its agencies, with respect to the accuracy and completeness of the information contained in this document. The DART Agency, by itself or through its Transaction Advisors, may amend or replace any of the information contained in this PIM at any time, without giving any prior notice or providing any reason. In furnishing this PIM, the Transaction Advisors, the DART Agency, the Government of the Republic of Tanzania or any of its agencies undertake no obligation to provide recipients with access to any additional information, or to update, or to correct any inaccuracies which may become apparent in this PIM or any other information made available in connection with the Project prior to the issuance of the bidding documentation. Additional information shall be provided at appropriate times during the formal tender process. No person has been authorised to give any information or make any representation not contained in this PIM and, if given or made, any such information or representation may not be relied upon as having been authorised by the Transaction Advisors, the DART Agency, the Government of the Republic of Tanzania or any of its agencies. All information in this PIM is qualified by the terms and conditions of the bidding documentation and any bid bulletins that may be issued until the submission of bids. In case of any conflict between the information and terms in this PIM and the bidding documentation and/or the draft concession agreements, those set out in the bidding documentation and/or the draft concession agreements shall prevail. This PIM does not constitute a solicitation of bids for any aspect of the Project. Solicitations of bids and bidding guidelines shall be provided in the bidding documentation.



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Abbreviations and acronyms

AF Agency Fee

AG Attorney General

AFCS Automated Fare Collection System

BRN Big Results Now

BRT Bus Rapid Transit

CCTV Closed-Circuit Television Camera

CPI Consumer Price Index

CSC Contactless Smart Card

DARCOBOA Dar es Salaam Commuter Bus Owners’ Association

DART Dar Rapid Transit Agency

EF Equipment Fee

FF Feeder Passenger Fee

FSA Full System Acceptance

FY Financial Year

GDP Gross Domestic Product

GPS Global Positioning System

GoT Government of Tanzania

ITS Intelligent Transportation System

MAB Ministerial Advisory Board

MoW Ministry of Works

NKRAs National Key Results Areas

O&M Operation and Maintenance

PA Public Announcement

PDB Presidential Delivery Bureau

PMO-RALG Prime Minister’s Office – Regional Administration and Local Government

POS Point of Sales

PPP Public-Private Partnership

PPRA Public Procurement Regulatory Authority

RF Revenue Fee

RFB Road Fund Board

RFEOI Request for Expressions of Interest

RFP Request for Proposals

RoW Right of Way

RTPI Real-Time Passenger Information

SF Support Service Fee

SUMATRA Surface and Marine Transport Regulatory Authority

TANROADS Tanzania National Roads Agency

TAZARA Tanzania-Zambia Railway Authority

TEMESA Tanzania Electrical, Mechanical and Services Agency

TF Trunk Km Fee

TIC Tanzania Investment Centre

TRA Tanzania Revenue Authority

TZS Tanzania Shilling

USD United States Dollar

UWADAR Association of Transporters in Dar es Salaam

WB World Bank



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Contents

1 Foreword 7

2 Executive Summary 8

3 Background 11 3.1 Tanzania 11 3.2 Dar es Salaam 13 3.3 Current public transport system 15

3.3.1 Daladalas 15 3.3.2 Commuter trains 16 3.3.3 Ferry 17 3.3.4 Bodabodas 17 3.3.5 Bajajis 18 3.3.6 Challenges 18

4 DART system 20 4.1 Overview 20 4.2 Demand 21 4.3 Infrastructure 21

4.3.1 Stations 21 4.3.2 Depots 26 4.3.3 Work progress status 27

4.4 Bus services 27 4.4.1 Trunk services 27 4.4.2 Feeder services 29

4.5 Automated Fare Collection System (AFCS) 30 4.5.1 Overview 30 4.5.2 Acquiring a smart card 31 4.5.3 Using trunk services 32 4.5.4 Using feeder services 32 4.5.5 Exiting the system after use of the bus services 32 4.5.6 Fares 32

4.6 Control Centre 32 4.6.1 Overview 32 4.6.2 Scheduling function 33 4.6.3 Controlling function 33 4.6.4 Reporting function 34

4.7 Fund management 34 4.8 Institutional setup 34

4.8.1 DART Agency 34 4.8.2 TANROADS 36 4.8.3 SUMATRA 36 4.8.4 Traffic police 36

5 Implementation strategy 37 5.1 Operational ramp-up 37

5.1.1 Interim stage 37 5.1.2 Stage A 37 5.1.3 Stage B 37 5.1.4 Stage C 38

5.2 Daladala transition policy 38 5.2.1 Awareness and support 38 5.2.2 Reallocation of daladala routes 38



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5.2.3 Reorganisation of the industry 38

6 Contractual structure 40 6.1 Overview 40 6.2 Service Provider contract 40

6.2.1 Trunk services component 41 6.2.2 Feeder services component 41 6.2.3 Equipment component 42 6.2.4 Support service component 43 6.2.5 Remuneration 44

6.3 Fund Manager contract 45

7 Investment framework 46 7.1 Foreign investment policy 46 7.2 Finance regime 46 7.3 Tanzania Investment Centre 46 7.4 PPP regime 47 7.5 Procurement regime 48 7.6 Big Results Now (BRN) 48 7.7 Local content requirement 49 7.8 Tax regime 49 7.9 Employment regime 49

8 Tendering process 50 8.1 Overview 50 8.2 Service Provider tendering process 50 8.3 Fund Manager tendering process 50

9 Contact 51



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Figures

Figure 1. DART System Map ............................................................................................................... 8 Figure 2. DART System Phase 1 .......................................................................................................... 9 Figure 3. Map of Tanzania .................................................................................................................. 11 Figure 4. Tanzania GDP Annual Growth Rate .................................................................................... 12 Figure 5. Tanzania Consumer Price Index and Inflation Rate .............................................................. 12 Figure 6. Tanzania Shilling Historical Exchange Rate to the United States Dollar ................................ 13 Figure 7. Map of Dar es Salaam’s Road Network ............................................................................... 14 Figure 8. Daladala in Dar es Salaam ................................................................................................... 15 Figure 9. Map of Main Daladala Routes ............................................................................................. 16 Figure 10. Dar es Salaam Commuter Train ........................................................................................... 17 Figure 11. Kivukoni – Kigamboni Ferry ................................................................................................. 17 Figure 12. Bodabodas ......................................................................................................................... 18 Figure 13. Bajaji in Dar es Salaam ........................................................................................................ 18 Figure 14. Traffic jam in Dar es Salaam ............................................................................................... 18 Figure 15. DART System Map ............................................................................................................. 20 Figure 16. Trunk Station Type A .......................................................................................................... 24 Figure 17. Trunk Station Type B .......................................................................................................... 24 Figure 18. Trunk Station Type C .......................................................................................................... 24 Figure 19. Trunk Station Type D .......................................................................................................... 24 Figure 20. Shekilango Station Layout.................................................................................................. 25 Figure 21. Kivukoni Terminal Layout ................................................................................................... 26 Figure 22. Jangwani Bus Depot Layout ................................................................................................27 Figure 23. Trunk Bus Layout (Indicative) ............................................................................................. 28 Figure 24. Phase 1 Trunk Services Map ................................................................................................ 29 Figure 25. Feeder Bus Layout (Indicative) ............................................................................................ 29 Figure 26. Phase 1 Feeder Services Map .............................................................................................. 30 Figure 27. Control System ................................................................................................................... 34 Figure 28. DART Agency Organisational Chart .....................................................................................35 Figure 29. Service Provider procurement process ................................................................................ 50

Tables

Table 1. Phase 1 Operational Highlights ........................................................................................... 21 Table 2. Phase 1 Stations ................................................................................................................. 23 Table 3. Phase 1 Trunk Services ....................................................................................................... 28 Table 4. Phase 1 Feeder Services ...................................................................................................... 30 Table 5. Fare Schedule ..................................................................................................................... 32 Table 6. Service Provider Fees Overview .......................................................................................... 44



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1 Foreword

“The Government of Tanzania has a clear vision in mind: to

provide a modern, efficient and environment-friendly public

transportation system at a reasonable cost to the residents of

Dar es Salaam through a successful and mutually beneficial

partnership with proven successful private Service Providers.

This vision is now about to be realised with the DART project.

I am particularly excited and proud at the idea of Tanzania

becoming the first African country to effectively embark upon

a large-scale BRT project through Public-Private Partnership,

thus paving the way for innovative urban transport solutions

for fast-growing cities across the continent.

In addition to providing a high-quality, accessible and affordable mass transit system and improving urban

mobility for the residents of Dar es Salaam, the Government of Tanzania’s ambition is, making use of the

country’s globally unique mobile payment ecosystem, to develop the DART transport smart cards into a

completely open contactless payment scheme to be used not only for other modes of transportation, but also for

small payments at retailers, loyalty programmes and whatever creative uses your business can come up with.

The only limit is your imagination in innovation-friendly Tanzania !

Finally, the DART project is meant to illustrate the Government of Tanzania’s commitment to attract and retain

investment from both foreign and domestic sources and to reinforce the role of the private sector as the main

driver and engine of sustainable economic growth. The multiple implications thereof are a completely open and

transparent selection process, a healthy level of return for investors and a reliable, trustworthy and determined

public partner, the DART Agency.

As this Project Information Memorandum will reveal, the DART project is a one-of-its-kind investment

opportunity in a dynamic, attractive and conducive business environment underpinned by effective and investor-

friendly political, economic and social policies. I am pleased and honoured to invite you to come and see for

yourself how much Tanzania’s friendly human capital is eager to make your business and our country grow

together.”

Welcome to Tanzania – Come grow with us !

Honorable Hawa A. Ghasia

Minister of State in the Prime Minister’s Office

for Regional Administration and Local Government



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2 Executive Summary

The Government of Tanzania has set itself an objective to create a quick, clean and cost-effective solution to

its capital city’s existing traffic problems. Public transport in Dar es Salaam is currently essentially provided

by about 5,200 privately-owned so-called daladala buses. This basic transport solution is starting to show its

limits due to increased congestion on the city’s main arterial roads. The Dar Rapid Transit (DART) system is

therefore being introduced with the aim and ambition to provide a better, more modern and more efficient

public transport service to the residents of Dar es Salaam. The DART system, which will ultimately become

the core public transport provider in the city, is part of the Big Results Now (BRN) initiative launched by His

Excellency President Dr. Jakaya Mrisho Kikwete to fast-track the delivery of the step-change required to

transition the country from a low to middle-income economy using joint capacity of the international and

local private sector expertise.

The DART system is a Bus Rapid Transit (BRT) scheme, i.e. a high-capacity transport solution which

functions in a way very similar to a tramway, except that the vehicles used for transporting passengers are

buses. The DART system consists of trunk buses operating on exclusive bus lanes at the centre of major

roads. Additionally the system makes use of feeder buses which operate on mixed traffic lanes and which

feed passengers to the trunk system. The DART system is a closed BRT system, meaning that passengers

need to access stations and terminals through turnstiles, where they pay a fare by means of a Contactless

Smart Card (CSC).

The DART system is planned to be built in six phases as follows.

Figure 1. DART System Map

Source: DART Agency

Currently Phase 1 of the DART system is being implemented, which consists of:

20.9 kilometres of trunk lanes;

57.9 km of feeder routes;

5 terminals;

27 stations;

7 feeder stations;



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3 connector stations with the existing public transport system;

2 bus depots.

Figure 2. DART System Phase 1

Source : DART Agency

The estimated maximum capacity of the Phase 1 infrastructure is 28,000 passengers per direction per hour.

The estimated maximal initial demand during the morning peak hour at Jangwani is 17,000 passengers per

hour. This will position the DART system as one of the BRT systems with the highest demands in the world

right from inception.

Kimara Terminal

Korogwe

Bucha

Baruti

Kona

Kibo

Ubungo Maji

Ubungo Terminal

Shekilango

Urafiki

Manzese Tip Top

Manzese

Manzese Argentina

Kagera

Mwembe Chai

Usalama

Magomeni Mapipa

Jangwani

Fire

DIT

Kisutu

City Council

Posta ya Zamani

Kivukoni Terminal

Msimbazi Police Kariakoo Terminal

Feeder Station (7)

Station with overtaking lane (23)

Terminal (5)

Station without overtaking lane (4)

DART SYSTEM (PHASE I)

Morocco Terminal

Feeder Route Terminal

Mbezi

Mwenge

Chuo Kikuu

Mabibo

Feeder Route

Muhimbili

Masaki

FR0

04

FR005

FR007

FR001

FR0

09

FR0

08

FR0

10

Makumbusho

Magogoni Ferry

Connector Station (3)

Kawe



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The Phase 1 infrastructure – bus ways, stations, terminals and depots – is being implemented by the

Tanzania National Roads Agency (TANROADS) through private contractors (STRABAG for the main part)

and consultants (SMEC for the main part). Financing is being provided through a credit of the World Bank

(WB) to the Government of Tanzania (GoT). Currently (May 2014) 60% of the overall works have been

implemented. Completion of all works is planned for end 2015. However the main trunk corridor on

Morogoro Road from Kimara to Kivukoni (15.4 km) as well as the Jangwani depot will be ready for use by end

2014. On this main section it is planned to commence operations in 2015.

The core of Phase 1 operations will be provided under a Public Private Partnership arrangement. The DART

Agency, under the Prime Minister’s Office – Regional Administration and Local Government (PMO-RALG), is

the procuring and management entity for the services to be provided by private sector companies. The

DART Agency currently intends to procure the services through one Service Provider contract and one Fund

Manager contract:

The Service Provider contract will comprise the following 4 components: o Trunk services component; o Feeder services component; o Equipment component; o Support service component;

The Fund Manager contract will comprise the provision of escrow account management services.

The DART Agency will hold an open and transparent competitive bidding process to procure those services

from the private sector. The present Project Information Memorandum is aimed at providing initial project

information to private parties interested in providing those services.



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3 Background

3.1 Tanzania

Tanzania measures 885,800 square kilometres. It lies between 1 and 12 degrees south of the Equator and it borders to its east on the Indian Ocean, to the north on Kenya and Uganda, to the west on Rwanda, Burundi, DRC, Zambia and Malawi and to the south on Mozambique. Its climate is tropical.

Figure 3. Map of Tanzania

Source: TANROADS

http://www.tanroads.org/newMap/Trunk n regional A4.pdf



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The United Republic of Tanzania was formed in 1964 as a merger of Tanganyika, the mainland, and Zanzibar, a group of islands to the east of the mainland. The 2012 census counted a population of 44.9 million people, up from 34.4 million in 2002. Average annual growth of population was 2.7% over the ten years. Average population density is 51 persons per square kilometre. Tanzania’s economic growth rate is amongst the highest in the world. The average annual growth rate was 7% between 2002 and 2012. The key factors explaining Tanzania’s strong and steady performance include the rapid growth of a number of economic sectors (communications, financial services, construction, oil and gas, mining, manufacturing and retail), a resilient domestic demand and the economy’s limited dependence on external trade. Despite its low growth rate, agriculture is also a driver of growth due to its large share of GDP.

Figure 4. Tanzania GDP Annual Growth Rate

Source: www.tradingseconomics.com / National Bureau of Statistics of Tanzania Historically quite high, Tanzania’s overall rate of inflation has been steadily declining over the past few months and is expected to be below 6% in 2014.

Figure 5. Tanzania Consumer Price Index and Inflation Rate

Source: National Bureau of Statistics of Tanzania

http://www.tradingseconomics.com/



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The value of the Tanzania Shilling (TZS) has been steadily depreciating against the United States Dollar (USD) up and until the end of 2011. In the last two years however the exchange rate has remained remarkably stable thanks to the shilling being strongly supported by an influx of foreign capital investments, mostly driven by the recent discovery of important offshore gas reserves. This stabilised trend is expected to continue in the foreseeable future as the development of the local oil and gas industry will guarantee a sustained flow of hard currency revenues for the country.

Figure 6. Tanzania Shilling Historical Exchange Rate to the United States Dollar

Source: www.tradingeconomics.com / OTC Interbank

3.2 Dar es Salaam

Dar es Salaam is the commercial capital of Tanzania. An estimated 70% of the country’s GDP is generated in

Dar es Salaam. It is one of the fastest growing cities in the world.

Average annual growth from 2002 to 2012 was 5.6%. The census

of 2012 counted 4.4 million inhabitants, up from 2.5 million in

2002. The city’s population is estimated to grow to at least 6

million inhabitants by 2030 and 10 million by 2050.

The Dar es Salaam metropolitan area covers a large part of the

Dar es Salaam region with a total area of 1,391 square kilometres

and a population density of 3,133 per square kilometre.

Administratively the city is divided into three municipalities,

Kinondoni to the north, Ilala at the centre and Temeke to the

south. The municipalities are local governments with elected

councillors and an executive branch. An overarching body, the Dar es Salaam City Council (DCC), is in charge

of coordinating the activities of the municipalities and overall city planning. All these local bodies are

overseen by the Prime Minister’s Office – Regional and Local Government (PMO-RALG).

Dar es Salaam ranked by New

York Times among Top 52 Places

to Go in 2014

“Tanzania may be best known for

the snow-capped peaks of Mount

Kilimanjaro and the game-packed

plains of the Serengeti, but the

real pulse of the country is found

in its largest city, Dar es Salaam.”

http://www.tradingeconomics.com/



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Figure 7. Map of Dar es Salaam’s Road Network

Source: TANROADS



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The port of Dar es Salaam is Tanzania’s main trade gateway and handles 90% of all sea-borne imports-

exports of goods in the country. Total volume of trade at the port is currently about 9 million tons per

annum, of which 50% are destined for Dar es Salaam and the rest to upcountry destinations and to

neighbouring countries. This generates a large amount of road freight traffic which in part needs to share

roads with the public transport system of the city.

Dar es Salaam is also the origin of the two rail systems in Tanzania, the Central Railway to Mwanza and

Kigoma – a metre-gauge railway compatible with the eastern African railway system – and the Tanzania-

Zambia Railway Authority (TAZARA) line – with a gauge of 1.06 metres compatible with the southern

African railways. The railways currently carry less than 5% of the upcountry freight traffic. Efforts are

underway to improve their performance and market share.

Economic growth in Dar es Salaam is estimated at 10% per annum, above the country average. The growth

of motorisation follows the overall economic growth. Currently it is estimated that there are about 100,000

passenger cars in use in Dar es Salaam and an equal amount of motorcycles. The number of passenger cars is

assumed to grow to about 200,000 by 2020 and 500,000 by 2030.

The growth of private motorised vehicle ownership, while appreciated as a sign of increased wealth, is

leading to rapidly worsening congestion. This is now threatening the viability of the provision of public

transport in the city.

3.3 Current public transport system

3.3.1 Daladalas

Public transport in Dar es Salaam is essentially provided by about 5,200 privately-owned so-called daladala

buses. Ownership is widely dispersed with about 3,000 owners and an average of two daladalas per owner.

Daladalas in their great majority are mid-sized buses with a capacity of about 40 passengers (so-called

Coasters).

Since 2006 only vehicles of more than 25 seats capacity are permitted to service downtown areas. This

regulation led to a rapid transformation and repositioning of the daladala product so that the low-grade

minibus prevalent in other African cities are generally absent in central Dar es Salaam, illustrating the

capacity of the daladala industry to adapt and invest in higher-order vehicles.

Figure 8. Daladala in Dar es Salaam

Source: _ncg (Creative Commons License)



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Daladalas are regulated by the Surface and Marine Transport Regulatory Authority (SUMATRA) under the

Ministry of Transport. SUMATRA issues an annual licence to each daladala to ply on a particular route.

Origin, destination and fares are clearly marked on each bus.

The daladala system is currently estimated to provide about 3 million trips each day during workdays.

Daladalas ply on 360 routes (boarding and de-boarding is on demand) and users can theoretically get from

one end of the town to any other without changing buses. Daladalas provide transport at extremely low

tariffs: cost for a trip up to 10 kilometres is TZS 400 (half for students), which translates to about USD 2.5

cents per passenger-kilometre. For longer trips and during rush hours fares go up to TZS 1,000.

Figure 9. Map of Main Daladala Routes

Source: DART Agency

3.3.2 Commuter trains

In 2012 the government introduced a commuter service on the two railways within the city limits. Two trains

are operated in the morning and evening peak hours, carrying a total of about 5,000 passengers per work

day. The introduction of further commuter train lines, in particular to connect neighbouring cities, is also

being considered.



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Figure 10. Dar es Salaam Commuter Train

Source: www.skyskrapercity.com

3.3.3 Ferry

A passenger and car ferry connects the city to the fast-developing Kigamboni suburb in the south. It is used

by thousands of passengers daily who will be able to connect with the DART system at the Kivukoni

terminal. TEMESA (Tanzania Electrical, Mechanical and Services Agency) plans to introduce more ferries

which will end at Kigamboni.

Figure 11. Kivukoni – Kigamboni Ferry

Source: IPP Media

3.3.4 Bodabodas

These are passenger motorcycles for hire. They are commonly used for short distances in areas not covered

by daladalas.

http://www.skyskrapercity.com/



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Figure 12. Bodabodas

Source: www.24tanzania.com

3.3.5 Bajajis

Completely absent of Dar es Salaam before 2010, the three-wheeled bajaji is now integral part of the city’s

transportation system. Directly imported from India, it represents a safer and more comfortable alternative

to bodabodas and its use is spreading at rapid pace.

Figure 13. Bajaji in Dar es Salaam

Source: www.dailyhabari.wordpress.com

3.3.6 Challenges

For all its merits the viability of the current public transport system is under threat due to rapidly increasing

congestion in the city of Dar es Salaam. There is a lack of transport during rush hours (because providers are

stuck in traffic) and a surplus during non-rush hours. Daladalas themselves contribute to the congestion with

their tendency to stop on traffic lanes to let passengers board or leave and with their large numbers and

proliferation on the public transport network.

Figure 14. Traffic jam in Dar es Salaam

http://www.24tanzania.com/

http://www.dailyhabari.wordpress.com/



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Source: www.24tanzania.com

The DART system is therefore being introduced with the aim and ambition to provide a cleaner, more

modern and more efficient public transport service to the residents of Dar es Salaam. The DART system will

ultimately become the core public transport provider. Other means of public transport, such as bajajis,

bodabodas and taxis will assist as distributors to locations near stations. Daladalas will keep operating in the

corridors where the DART system will expand to in the future. Suitable interface arrangements with the

daladala system have been established for Phase 1.

http://www.24tanzania.com/



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4 DART system

4.1 Overview

The DART system is a high-capacity Bus Rapid Transit (BRT) scheme with closed stations and physically

segregated lanes. While the DART system aims to ultimately provide a comprehensive public transport

solution for the whole of Dar es Salaam, it will be developed in six phases as follows.

Figure 15. DART System Map

Source: DART Agency

Currently Phase 1 of the DART system infrastructure is being implemented, which consists of:

20.9 kilometres of trunk lanes;

57.9 km of feeder routes;

5 terminals;

27 stations;

7 feeder stations;

3 connector stations with the existing public transport system;

2 bus depots.

The Phase 1 infrastructure is being implemented by TANROADS through private contractors (STRABAG for

the main part) and consultants (SMEC for the main part). Financing is being provided through a credit of the

World Bank to the Government of Tanzania. Currently (May 2014) 60% of the overall works have been

implemented. Completion of all works is planned for end 2015. However the main trunk corridor on

Morogoro Road from Kimara to Kivukoni (15.4 km) as well as the Jangwani depot will be ready for use by end

2014. On this main section it is planned to commence operations in 2015.

Phase 1 operations will offer 7 trunk services using about 145 18-metre articulated buses with a capacity of

150 passengers and 11 feeder services using about 90 12-metre buses with a capacity of 80 passengers. The

dedicated trunk lanes will be exclusive to trunk buses and competing daladala services will be phased out

along both trunk and feeder routes as Phase 1 becomes operational, except for the services along the



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Kawawa Road and the Sam Nujoma Road continuing south (for which no alternative will be provided by

DART Phase 1 services).

Articulated buses with a 150-passenger capacity will provide a combination of stopping and express services

on the trunk routes. Most stations have passing lanes in order to allow express buses to overtake stopping

buses. Passengers will board trunk buses on the right-hand side from stations located in the median of the

roadway. Station platforms are raised to allow for level boarding 0.9 metre above street level.

Feeder bus vehicles will take passengers at and to feeder stops and stations, trunk terminals as well as

various special feeder stations near trunk stations. Additionally there will be transfer stations for the transfer

of daladala passengers to the DART system (only needed until Phases 2 and 3 are built). Traditional means of

transport including daladalas, bajajis, bodabodas, bicycles and walking will assist to bring passengers to the

system and efforts will be made to facilitate transfers as much as possible.

Table 1. Phase 1 Operational Highlights

Trunk Feeder

Peak headway (min) 1.5 to 6.0 1.7 to 15.0

Commercial speed (km/hr) 23 15

Hours of operation 5:00 to 23:00 5:00 to 23:00

Total daily service kilometres 45,000 20,000

Source: DART Agency

Passengers will pay a flat fare depending on whether they make use of trunk services, feeder services or a

combination of both. They will enter stations and feeder buses with Contactless Smart Cards which will be

sold and can be recharged at stations and terminals. The trunk lines will be closed, meaning that passengers

will need to use a Contactless Smart Card to enter and exit stations through turnstiles.

4.2 Demand

A comprehensive transportation model was developed under the EMME2 software to assess demand for

public transport in the city and estimate potential ridership for Phase 1 of the DART system. The model,

which will be made available to bidders, shows very strong demand and estimated ridership as the DART

system will be virtually the only reliable form of public transport available along Morogoro Road, which

constitutes the city’s main arterial road. In that sense the Phase 1 corridor really represents the heart of the

city’s future public transportation system.

The estimated maximal initial demand during the morning peak hour at Jangwani is 17,000 passengers per

hour. There will be about 410,000 passengers per day on the system for a total annual ridership of about 130

million trips. This will position DART as one of the largest BRT systems in the world right from inception.

The transportation model was prepared in a very conservative fashion in the sense that it does not take into

account ridership growth, which is potentially very significant in view of Dar es Salaam’s demographic

dynamics and the location of the Phase 1 corridor right next to several fast-growing settlements in the west

of the city. Additionally a considerable upside in ridership and fare revenues on the Phase 1 corridor is

anticipated as soon as the expansion of the DART system into Phase 2 and further is operational.

4.3 Infrastructure

4.3.1 Stations

4.3.1.1 Overview

Stations have been classified in three categories, depending on functionality and utility offered:



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Trunk stations: these are stations on the trunk route. In Phase 1 there are 25 trunk stations, 22 of them provided with overtaking lanes. They are elevated to 90 centimetres to allow level entrance into trunk buses. They are normally accessed via level pedestrian crossings (slightly elevated to ensure pedestrian safety). From the pedestrian crossing there is a flat ramp, allowing easy wheelchair access, followed by turnstiles where the smart card is applied to enter the station. Stations are normally spaced 500 meters apart. There are 4 types of trunk stations (A, B, C and D), depending on the assumed passenger demand.

Feeder stations: 7 feeder stations allow passengers to transfer from one or more feeder routes to the trunk lines.

Terminals: 5 terminals are the start and end stations for all trunk services and allow transfers between feeder services as well as between different transportation means such as regional buses, private vehicles, bicycles and many more.



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Table 2. Phase 1 Stations

Source: DART Agency

The trunk stations and terminals will feature the following:

Automated Fare Collection System: o Ticket offices selling Contactless Smart Cards, stored value and other card services;

Kimara – Kivukoni 15.4 km

Kimara Terminal Morogoro Terminal FR004 3 trunk + 3 feeder

Korogwe Morogoro B 2 + 2 mixed

Bucha Morogoro B 2 + 2 mixed

Baruti Morogoro B 2 + 2 mixed

Kona Morogoro B 2 + 2 mixed

Kibo Morogoro B 2 + 2 mixed

Ubungo Maji Morogoro C 4

Ubungo Terminal Morogoro Terminal FR005/6 6

Sheki lango Morogoro C FR007/8 4

Urafiki Morogoro C FR010 4

Manzese Tip Top Morogoro C 4

Manzese Morogoro C 4

Manzese Argentina Morogoro C 4

Kagera Morogoro C 4

Mwembe Chai Morogoro C 4

Usalama Morogoro C 4

Magomeni Mapipa Morogoro C FR010 4

Jangwani Morogoro C 4

Fire Station Morogoro D FR011 4

DIT Morogoro C 2

Kisutu Morogoro A 2

City Counci l Zanaki Street B 2

Posta ya Zamani Kivukoni Front C 2

Kivukoni Terminal Kivukoni Front Terminal Ferry 6

Kawawa North Branch 3.8 km

Magomeni Hospita l Kawawa C 4

Kanisani Kawawa B FR008 4

Mkwajuni Kawawa C 4

Mwanamboka Kawawa C FR009 4

Kinondoni B Kawawa C 4

Morocco Terminal Kawawa Terminal FR001/2/3 6

Kariakoo Branch 1.7 km

Ms imbazi Pol ice Msimbazi Street B+B 4

Kariakoo Terminal Msimbazi Street Terminal Daladala 6

Proposed Name Road Name Station TypeFeeder

ConnectionsNo. of BRT Lanes



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o Turnstiles to control entry to the stations (paid passage from the unpaid to the paid area); o Turnstiles to control exit from the stations (free passage from the paid to the unpaid area);

Equipment to mitigate the impact of short (<4 hours) power failures;

Passenger information displays providing the following information: o Name/number of the next service, for each boarding area; o Departure time; o Stations served; o Incident, event, disruption information; o Advance notice of any service changes or temporary station closures;

Signage to control passenger flows;

Signage to provide customer education and information;

A public announcement system;

CCTV cameras for station security and revenue protection.

4.3.1.2 Trunk stations

Based on demand conditions, the design of trunk stations has to take into consideration the space

requirements for adequate passenger flow and permanence at station. Based on the demand analysis 3

types of trunk stations have been developed to address passenger flow demands:

Type A trunk stations, consisting of one module with only one entrance (1 in Phase 1);

Type B trunk stations, consisting of one module with two entrances at either end (9 in Phase 1);

Type C trunk stations, consisting of two modules put together with two entrances at either end (16 in Phase 1);

Type D trunk stations, consisting of three modules put together with two entrances at either end (1 in Phase 1).

Figure 16. Trunk Station Type A

Source: DART Agency

Figure 17. Trunk Station Type B

Source: DART Agency

Figure 18. Trunk Station Type C

Source: DART Agency

Figure 19. Trunk Station Type D



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Source: DART Agency

4.3.1.3 Feeder stations In Phase 1 there are 7 feeder transfer stations where feeder services intersect and integrate with trunk services.

One example of this kind of stations is Shekilango.

Figure 20. Shekilango Station Layout

Source: DART Agency

4.3.1.4 Terminal stations

There are 5 terminal stations in Phase 1. Of these, 4 will be located at the ends of the corridor: Kivukoni

Front, Morogoro Road at Kimara, Kawawa North Road at Morocco and Kariakoo on Msimbazi Street. The

fifth terminal station, which will be the largest, will be located at Ubungo in an intermediate segment of

Morogoro Road.



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Figure 21. Kivukoni Terminal Layout

Source: DART Agency

4.3.2 Depots

The Service Provider will be awarded two depots to park its fleet, maintain its buses and manage its

operations. The Jangwani bus depot will have capacity for 210 articulated buses. The Ubungo bus depot,

which will be made available at a later stage, will be located on the north area of the current upcountry

terminal and will have capacity for 120 articulated buses.

On the depots the following will be provided to the Service Provider by the DART Agency:

Land;

Paved parking area;

Roofed bus maintenance area;

Administration building;

Water and electricity connections.

However everything else required to run the depots shall be provided by the Service Provider.

A

B



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Figure 22. Jangwani Bus Depot Layout

Source: DART Agency

4.3.3 Work progress status

The DART system infrastructure is being implemented by the Tanzania National Roads Agency

(TANROADS) through private contractors (STRABAG for the main part) and consultants (SMEC for the main

part). Financing is being provided through a credit of the World Bank (WB) to the Government of Tanzania

(GoT). Currently (May 2014) 60% of the overall works have been implemented. Completion of all works is

planned for 2015. However the main trunk corridor on Morogoro Road from Kimara to Kivukoni (15.4 km) as

well as the Jangwani depot will be ready for use by end 2014. On this main section it is planned to commence

operations in 2015.

4.4 Bus services

Phase 1 bus operations will be provided by a Service Provider providing both trunk and feeder services. The

Service Provider will be a private company registered in Tanzania with ownership possibly shared between

bidding consortium members. The contract will be awarded for a period of 12 years following a public tender

process under terms and conditions established by the DART Agency in accordance with the regulations

governing public procurement and PPPs.

The Service Provider will be responsible for the financing and acquisition of vehicles as well as for the

recruitment of drivers, technical maintenance personnel and management and administrative staff. The

operational scheme comprises trunk route services and feeder services.

4.4.1 Trunk services

Trunk services will be rendered by 18-meter articulated buses with 150 passenger capacity and advanced

technical features such as pneumatic suspension, automatic gearbox, forced ventilation and cutting-edge

technology motors. Trunk buses will also be fitted with an ITS system consisting of at least a GPS

transponder, wireless communication and a driver’s console for communication with the Control Centre.

Technical output specifications of the trunk buses will be provided as part of the bidding documentation

package.



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May 2014

Figure 23. Trunk Bus Layout (Indicative)

Source: DART

In Phase 1 there are a total of 7 trunk services. On the trunk corridors, at most stations, the physical design

includes passing/overtaking lanes. This expands the system’s capacity by allowing both stopping and express

services:

Stopping services: the bus stops at every single station along its path;

Express services: the bus stops only at determined groups of stations defined by origin and

destination concentration criteria, missing some stations on their path, therefore increasing operational speeds.

All services were designed based on a maximum frequency during the morning peak hour of 40 buses/hour

(1.5 minute headway) and a 10 buses/hour minimum frequency (6.0 minutes headway). The operational

speed considered for trunk services was set at 23 kilometre per hour. All of these routes could be changed by

the DART Agency during operations to improve service to the users or to adapt to the city’s demographics.

Table 3. Phase 1 Trunk Services

Source: DART Agency

Length

(km)

TR001 Stopping Ubungo Kariakoo 9

TR002 Express Kimara Kariakoo 14

TR003 Stopping Kimara Kivukoni 15

TR004 Stopping Morocco Kariakoo 7

TR005 Stopping Morocco Ubungo 9

TR006 Stopping Morocco Kivukoni 9

TR007 Express Ubungo Kivukoni 11

TRUNK

Code Type of Service From To



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Figure 24. Phase 1 Trunk Services Map

Source: DART Agency

4.4.2 Feeder services

Feeder services will be rendered by 12-metre buses with a capacity of 80 passengers. Each feeder bus will

employ a driver. Feeder buses will be fitted with an ITS system consisting of at least a GPS transponder,

wireless communication and a driver’s console for communication with the Control Centre. Technical output

specifications of the feeder buses will be provided as part of the bidding documentation package.

Figure 25. Feeder Bus Layout (Indicative)

Source: DART Agency

In Phase 1 there are a total of 11 feeder services covering 57.9 km of additional routes mainly north of the

trunk corridor.



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Table 4. Phase 1 Feeder Services

Source: DART Agency

Figure 26. Phase 1 Feeder Services Map

Source: DART Agency

4.5 Automated Fare Collection System (AFCS)

4.5.1 Overview

The private sector will be responsible for the delivery, design, building, installation, financing, operation and

maintenance of a complete Automated Fare Collection System (AFCS). The private sector will be allowed to

use either a dedicated transport solution or a generic contactless payment solution.

The AFCS functions and services to be delivered to the DART Agency will include:

Length

(km)

FR001 12m80pax Morocco Masaki 5.2

FR002 12m80pax Morocco Kawe 7.8

FR003 12m80pax Morocco Mwenge 4.3

FR004 12m80pax Kimara Mbezi 7.0

FR005 12m80pax Ubungo Mwenge 4.2

FR006 12m80pax Ubungo Chuo Kikuu 6.6

FR007 12m80pax Shekilango Mwenge 5.0N/4.7S

FR008 12m80pax Shekilango Kanisani 6.4

FR009 12m80pax Mwanamboka Makumbusho 3.1E/3.8W

FR010 12m80pax Magomeni Mapipa Urafiki 7.1

FR011 12m80pax Fire Muhimbili 1.3N/1.1S

Total 57.9

FEEDER

Code Type of Service From To



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Supplying, installing and maintaining the AFCS equipment on stations and terminals;

Establishing and enforcing day-to-day management of the AFCS;

Ensuring that there are sufficient fare media sales and top-up facilities to support the ridership in the DART system;

Providing fare collection related customer services on stations, terminals as well as through online channels;

Striving to reduce dwell time in stations by implementing a simple, effective and efficient AFCS;

Collecting cash resulting from stored value sales for deposit with the Fund Manager;

Ensuring revenue protection;

Taking a comprehensive insurance cover for the daily cash collections prior to submission to the Fund Manager;

Providing timely information on category of passengers, daily fares collected and any other relevant commuter information as requested by the DART Agency for decision making and planning purposes;

Providing accurate data to the DART Agency and the Fund Manager on daily fares collection;

Facilitating operational and financial audit as and when required by the DART Agency.

Contactless Smart Cards will offer smooth boarding and will be the only accepted method of payment.

However the use of Contactless Smart Cards does not have to be limited to the DART system. In other large

AFCS schemes such as Hong Kong, the Netherlands, London, Singapore and Taiwan, transport Contactless

Smart Cards are used for a diverse range of other applications, which include small payments at retailers,

access control, identity control and loyalty programmes among others. It will be up to the private sector to

select and capitalise on other possible uses of the cards.

Actual fare collection operations will be conducted under the responsibility of the Service Provider by

cashiers at stations and terminals as well as automated contactless equipment. The equipment to be

procured for the AFCS includes:

Contactless Smart Cards (not necessarily transport-specific);

Point of Sales (POS) (not necessarily transport-specific);

Card initialisation devices (not necessarily transport-specific);

Turnstiles in stations and terminals;

Card readers in stations, terminals and feeder buses;

Data servers;

Software for POS and equipment;

Mobile and/or optical fibre communication equipment.

AFCS technical specifications will be made available to all subsequent Service Providers of the DART system

and other Contactless Smart Card providers, who will be offered the opportunity to source equipment from

the Phase 1 Service Provider or alternatively select any third party equipment, as long as it complies with the

technical specifications provided.

4.5.2 Acquiring a smart card

Any passenger intending to make use of the DART services must be in possession of a Contactless Smart

Card with sufficient value for the trip. CSCs can be delivered via ticket offices at stations and retail outlets

outside stations. The passenger will pay a nominal price of up to TZS 500 (to be decided by the Service

Provider) to obtain the card and can then have it loaded with stored value. CSC and stored value can be

bought with cash or using an M-money provider such as Tigo Pesa, M-Pesa, Airtel Money, Ezy Pesa or Pesa

Fasta. M-money is indeed a an increasingly popular mechanism for payment in Tanzania.

Passengers can optionally apply for registration of their cards. Stored value on registered cards is then

protected against theft or loss.



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Students will be given the opportunity to load a distinctive product on the CSC by showing a valid student

ID. The CSC will then be linked to the student ID and the fares for trips and journeys with this CSC will be

discounted.

The private Service Provider will be required to market the card and educate passengers to use the system.

4.5.3 Using trunk services

Trunk stations and terminals will consist of a paid area and an unpaid area. Trunk buses will stop in the paid

area. The paid area and the unpaid area are separated by a gate line, i.e. a series of turnstiles only granting

passage from unpaid to paid area upon payment of the fare. Passengers approaching the gate line will

present a card to the reader on the turnstile. The appropriate fare will be deducted from the stored value on

the CSC and the turnstile will let the passenger pass.

4.5.4 Using feeder services

On feeder buses, passengers will board at the front of the bus. They will present their CSC to a reader and

the appropriate fare will be deducted from the stored value on the CSC.

4.5.5 Exiting the system after use of the bus services

Passage through a gate line from paid to unpaid area and exiting a feeder bus requires no further action from

the passenger.

4.5.6 Fares

Passengers will pay a flat fare depending on whether they make use of trunk services, feeder services or a

combination of both. Discounted integrated fares will be charged for combined trips, provided each leg of

the trip starts within 90 minutes from the start of the previous leg of the trip.

Table 5. Fare Schedule

Single trip feeder TZS 500

Single trip trunk TZS 700

Combined trip feeder + trunk or trunk + feeder TZS 800

Combined trip feeder + trunk + feeder TZS 900

Student discount 50%

Source: DART Agency

Passengers will not be eligible for an integrated fare when:

More than 90 minutes have passed since the latest validation of the CSC;

A transfer between two feeder buses or two trunk routes is detected.

4.6 Control Centre

4.6.1 Overview

The Control Centre will serve as a central control point for the operation of the DART system. Following a

capacity ramp-up period of 2 years during which the private Service Provider will be responsible for the

operation of the system and the training of DART Agency staff, the Control Centre will be operated by the

DART Agency. The Control Centre will aggregate all information from the system, analyse it and optimise



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the operation of the BRT in the light of changing circumstances. The information will originate from the

following systems:

AFCS, with transaction and revenue information;

Intelligent Transportation Systems (ITS) on board the trunk and feeder buses, with location

information;

CCTV cameras on the stations and terminals, with video feeds;

Other sources such as the DART Agency, the traffic police department and TANROADS.

The main functions to be carried out by the Control Centre are as follows:

Scheduling the services every week, day and hour for each trunk and feeder service;

Controlling the system to ensure quality of the service, including:

o Complying with schedules;

o Communicating with drivers and letting them know if they need to slow down or speed

up;

o Addressing unforeseeable operational problems such as bus breakdowns, traffic jams,

accidents, etc.;

Reporting on operations.

The Control Centre will be located in the Jangwani depot during the capacity ramp-up period of 2 years and

then transferred to another location to be determined once the DART Agency takes over. The equipment to

be procured by the Service Provider for the Control Centre includes all necessary communication and

physical equipment (data transmission, GPS information and radio service) as well as the scheduling and

control software and technologies, which must be fully integrated with the AFCS and the onboard ITS

equipment. Technical specifications for the ITS and driver’s console of trunk and feeder buses will be made

available to all subsequent Service Providers of the DART system, who will be offered the opportunity to

source this equipment from the Phase 1 Service Provider or alternatively select any third party equipment, as

long as it complies with the technical specifications provided.

4.6.2 Scheduling function

Control begins with determining the schedule. This schedule must be shared with the bus Service Provider,

so that they can perform dispatch management to optimally allocate buses, drivers and conductors. The

latter function (dispatch management) is not a Control Centre function.

The Control Centre will schedule trunk and feeder services and produce monthly, weekly and daily schedules

for the Service Provider (longer-term schedules will help the Service Provider prepare maintenance shifts for

the buses). To schedule the services, the two main inputs will be the size of the operational fleet available

and the total and per station numbers of passengers.

The Service Provider will then send detailed schedules with specified buses and drivers back to the Control

Centre for approval. Once approval is granted, the detailed information of the service must be saved on the

on-board computer of each trunk and feeder bus. Station stops and times will then appear on the driver’s

display.

4.6.3 Controlling function

The controlling function will mostly rely on GPS transponders sending information to the Control Centre via

wireless communication. These transponders will record arrival times at stations and terminals as well as the

location of each bus and periodically during the day send this information to the Control Centre for

verification against the assigned schedule. The distance travelled will be determined by the Control Centre

and checked against odometer readings.

Bus drivers will proceed to drive the scheduled service displayed on the driver’s console and will be charged

with maintaining the quality of the service, complying with the schedule and adjusting the speed. However



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this will also be monitored by the Control Centre which can then request the driver to slow down or speed

up. While on the road bus drivers will have direct contact with the Control Centre, from which they will take

their instructions. This communication can be through radio or using cell phone technology in the bus with

pre-configured panel activation buttons.

The Control Centre will be responsible for comparing planned versus realised schedules, both in terms of

time and kilometres driven. Those numbers then get shared with the financial planning team.

Figure 27. Control System

Source: DART Agency

4.6.4 Reporting function

The Control Centre must be capable to produce comprehensive reports for service quality management,

financial reconciliation, Service Provider payment and financial planning. Other than the detailed reporting

requirements to be listed in the bidding documentation, the reporting system must be sufficiently flexible to

mine the data for new purposes.

4.7 Fund management

The transparent and fair distribution of revenues is fundamental to the DART system and in operating a

network of integrated transit providers. To ensure confidence of the private sector, as well as the DART

Agency, in the distribution of revenues, an independent Fund Manager will act as a custodian of the

revenues. The Fund Manager will receive fare revenues every day from operations and then pay the Service

Provider according to fixed rules and regulations as stipulated in the contracts.

4.8 Institutional setup

4.8.1 DART Agency

The DART Agency is a public agency. It oversees the DART system and ensures quality control. It is an

executive agency created by the President’s Office – Public Service Management (PO-PSM) under the

Executive Agency Programme as stipulated in the Executive Agency Act No 30 of 1977. The DART Agency

reports to Permanent Secretary – Prime Minister’s Office – Regional Administration and Local Government

(PMO-RALG). As an executive agency, the DART Agency is a semi-autonomous legal entity that may enter

into contracts in its own name. It can also borrow money, as well as acquire, hold or dispose movable and

immovable property, pending approval of the Permanent Secretary.



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The Permanent Secretary (PMO-RALG) is responsible for the strategic management of the DART Agency,

and for that purpose may give directions to the Chief Executive of the DART Agency “but with due regard to

the need to uphold the Agency’s autonomy in the day-to-day management of its affairs”. The Chief

Executive of the DART Agency is appointed by the Minister on the advice of the Civil Service Commission.

The DART Agency currently has 29 staff and operates on an annual operating budget of about TZS 1 billion.

Those figures are expected to double once the system is in operation, with a planned full staffing of 66

(including 23 staff at the Control Centre) and an annual budget of TZS 2 billion.

Figure 28. DART Agency Organisational Chart

Source: DART Agency

Following are the mandated functions of the DART Agency:

Conduct the bidding process for tendering the operations of the DART system to the private sector;

Enter into contracts with Service Providers and oversee these contracts;

Develop and maintain the DART system’s image and branding;

Market and advertise the DART system;

Ensure the DART system balances the need to be self-financing and profitable for the Service

Provider with the need to remain affordable to the citizens of Dar es Salaam, while still providing a

good quality of service, by:

o Planning the number of kilometres, routes, frequencies and bus schedules;

o Calculating the user fares and presenting studies about the user fares to the Ministerial

Advisory Board (MAB) and the private Service Provider;

o Providing information to the Fund Manager to determine amounts payable to the private

Service Provider for their services;

o Managing special events or emergencies that may cause disruption to services or require

changes to the bus schedule/operations or the disbursements of payments;

Facilitate the resolution of any disputes that may arise between the DART system’s actors;

Report to the Ministerial Advisory Board on all matters regarding the administration and

management of the DART system;

DART Coordination

Permanent Secretary Coordination

Committee

Technical

Committee

Steering Committee

Chief Executive

Finance and Business Development Division

Finance and Accounts

Fare Collection Revenue Management Contract Management

Business Development

Customer Support

Marketing Advertisement, other

bus inesses

Operations and Infrastructure Management Operations

Bus Planning/Regulations Control Centre AFCS/ITS

Infrastructure Management

Stations / Terminals

Safety /Security Traffic Management Resettlement

Transportation Planning

Transport Planning

Interactions with other urban planning entities

System Planning and Design

Future Phases

Administration and Human

Resource

Administration and Human

Resource

Public Relations and Communications

Minister

Information & Communication Technology

Procurement Management Legal Services

Internal Audit

DART Mission

To provide quality, accessible and

affordable mass transport system

and improve urban mobility for the

residents of Dar es Salaam

Ministerial Advisory Board

4 Units

4 Divisions

8 Sections



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Implement all policies and regulations as directed by the Ministerial Advisory Board;

Make recommendations for the enactment of necessary legislation to the Ministerial Advisory

Board to enhance proper management of the DART system;

Collaborate with SUMATRA and TANROADS on all matters relating to the services and

infrastructure of the DART system;

Make recommendations for the future design and planning of the DART system in the city of Dar es

Salaam for the adoption by the Ministerial Advisory Board;

Collaborate with all the key stakeholders on the DART system, including the government ministries

and the private sector.

4.8.2 TANROADS

TANROADS is the roads authority under the Ministry of Works (MoW) responsible for the management of

the national road network. Maintenance funding is providing by the Road Fund, which collects revenues

from the fuel levy, transit fees and overloading fees. In FY2012/2103 the Road Fund Board (RFB) disbursed

TZS 527 billion in total, including TZS 320 billion to TANROADS.

The DART trunk corridor roads are national roads and were thus built under the responsibility of

TANROADS. TANROADS has established a special BRT unit responsible for the implementation of the

DART infrastructure works.

After completion of the construction, the intention is to have TANROADS concede the trunk corridors to the

DART Agency so that no separate contractual agreement for the Right of Way (RoW) will be required

between the private Service Provider and TANROADS. The DART Agency is in the process of applying for

road agency status, which will enable it to take over maintenance of the bus ways, mixed traffic lanes as well

as the bicycle and pedestrian ways through a performance-based long-term contract (12 years) funded from

the proceeds of the Road Fund.

4.8.3 SUMATRA

SUMATRA was created in 2005 under the Ministry of Transport. It is responsible for issuing transport licenses

in all surface and marine transportation subsectors, including for public transport in the city of Dar es

Salaam, as well as for setting fares and tariffs.

The role of SUMATRA will be instrumental in driving the daladala transition policy. It will do so in close

collaboration with the DART Agency by gradually phasing out – by way of non-renewal – the licenses for

daladala routes potentially competing with the DART system and allocating other routes in fast-growing

areas of the city to affected daladala operators.

4.8.4 Traffic police

The traffic police is in charge of traffic regulation and law enforcement on the roads of Dar es Salaam. At the

moment it operates a small traffic control centre from the traffic police headquarters, communicating with

traffic officers throughout the city via radio.

The traffic police will have the critical role of ensuring fluidity of DART services by:

Handling traffic at the few intersections between dedicated trunk lanes and mixed traffic lanes;

Enforcing road signs and traffic lights;

Maintaining exclusivity of the bus ways for trunk services;

Managing security and crime (in cooperation with the Service Provider).



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5 Implementation strategy

The DART Agency is conscious of the fact that, in view of the delays required to procure and commission a

complete fleet of trunk and feeder buses, phase out daladalas from the routes to be covered by the new

system and change commuters’ habits, the transition from the current transport system to the DART system

will not be effective from day 1 but will have to be implemented in stages so as to ensure a continuity of

public transport services for users.

The DART Agency has therefore developed a staged implementation approach as described below. During

the tender process private sector bidders will however be invited to make suggestions on how to fast-track

and improve this implementation strategy.

5.1 Operational ramp-up

5.1.1 Interim stage

In view of the anticipated completion date of the main trunk corridor infrastructure and the urgent need for

high-capacity transportation on the Morogoro Road, an interim stage was designed to fast-track the

implementation of Phase 1. At this point this interim stage has not been fully confirmed.

Should it materialise, an interim fleet of 20 trunk buses would be purchased by the DART Agency. This

interim fleet would then be transferred to the private Service Provider free of charge so that it can use it to

train its drivers, provide basic initial services and create awareness of the upcoming service among

commuters.

During the interim stage a basic service would be provided on the Kimara – Kivukoni section of the trunk

corridor. This basic service would not be able to absorb the demand at peak hour and therefore daladalas

would still be allowed to operate parallelly to the DART system.

No feeder services would be provided at this stage.

5.1.2 Stage A

For Stage A an operational fleet of about 145 trunk buses and about 25 feeder buses will be procured by the

private Service Provider. This fleet should be sufficient to provide a full service on the trunk corridor as well

as on the FR004 (Mbezi – Kimara) and FR011 (Fire – Muhimbili) feeder routes.

During Stage A daladalas will not be allowed to operate in parallel to the above routes anymore.

5.1.3 Stage B

For Stage B an additional estimated fleet of about 60 feeder buses will be procured by the private Service

Provider. This fleet should be sufficient to provide a full service on the entire DART Phase 1 trunk and feeder

network except for the FR003 (Morocco – Mwenge) and FR008 (Shekilango – Kanisani) feeder routes, on

which construction works will still be ongoing.

During Stage B daladalas will not be allowed to operate in parallel to the DART Phase 1 network anymore,

except for the above two routes (for which no service will be provided yet) and for the services along the

Kawawa Road and the Sam Nujoma Road continuing south.



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5.1.4 Stage C

For Stage C an additional estimated fleet of about 5 feeder buses will be procured by the private Service

Provider. This fleet should be sufficient to provide a full service on the entire DART Phase 1 trunk and feeder

network.

During Stage C daladalas will not be allowed to operate in parallel to the entire DART Phase 1 network

anymore, except for the services along the Kawawa Road and the Sam Nujoma Road continuing south.

5.2 Daladala transition policy

5.2.1 Awareness and support

Daladalas have been providing public transport solutions to the residents of Dar es Salaam for the last 30

years. They therefore represent an important group of stakeholders in the project and have been involved in

a number of rounds of discussions and consultations with government. They are well aware of the existence

of the DART project and, acknowledging the need for a modern transport system in Dar es Salaam and the

benefit it will bring to both commuters and operators in terms of reduced congestion on the road, they are

generally supportive of the DART initiative.

5.2.2 Reallocation of daladala routes

The DART system was based on the demand study of the corridors and feeder areas and also addressed

existing passenger transport provided by daladala services. In order to guarantee the expected demand,

avoid duplication of services, ensure the competitiveness of the DART system and reassigning resources to

fast-growing areas which are in need of better services, the existing passenger transport services will need to

be prohibited from operating the same service, with the same origins and destinations along the same

routes.

To this end 43 of the current daladala routes operating in parallel to the future DART system will be

cancelled, namely all of the daladala routes on Morogoro Road as well as the routes taking Kawawa North

Road and turning into the Morogoro corridor (daladalas continuing south, away from the BRT corridor, will

still be permitted to operate as the Phase 1 of the DART system will not be able to provide an alternative

transport solution yet).

The phasing out of daladalas, which to some extent is already taking place, will be done by way of non-

renewal of SUMATRA licenses along those routes, which are issued for a maximum of 12 months. Upon

expiry of their license affected operators will be offered different daladala routes to operate. While the fast

population growth and rapid spreading of suburban neighbourhoods will create sufficient need to absorb

most of this freed capacity, it is believed that some daladala owners may then decide to withdraw from the

public transport business altogether and invest in other sectors.

5.2.3 Reorganisation of the industry

Unlike in other cities around the world, informal public transport operators of Dar es Salaam are only weakly

organised. There are two daladala owners’ associations, namely the Dar es Salaam Commuter Bus Owners’

Association (DARCOBOA) and the Association of Transporters in Dar es Salaam (UWADAR). The industry

remains however very fragmented.

To facilitate the transition to a modern public transport system, SUMATRA and DART are currently

providing support to daladala operators to help them structure themselves into formal business entities.

SUMATRA is strongly encouraging daladala owners operating in some of the corridors to form route

associations and has actually declared that it will no longer licence individual daladalas after a set date.



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This industry restructuring and reorganisation process is also meant to give daladala owners a chance to

associate with local and international parties interested in bidding for the DART system and thus participate

in the tender process. While it is widely understood by current daladala owners that they will not enjoy

preferential treatment in the tender process, the inclusion of parties with local experience within bidding

consortia will be encouraged following the possibilities offered by the PPP and procurement legislation and

regulations of Tanzania.



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6 Contractual structure

6.1 Overview

Recognising the need for a staged implementation approach, the DART Agency has designed a flexible

contractual structure allowing for close adaptation of operational services to progress of the construction

works on the ground as well as to the level of demand. The structure will encompass two separate contracts,

namely a Service Provider contract and Fund Manager contract, with scopes defined as follows:

Service Provider Contract:

o Will be tendered around mid-2014;

o Will need to represent the most comprehensive possible package of trunk, feeder, station

and system services in view of the progress of the infrastructure works;

o Will comprise 4 components:

Trunk bus services component; Feeder bus services component; Equipment component; Support service component;

o Will be designed as an availability payment contract aiming to limit the demand risk

borne by the private Service Provider, while providing a safe environment for confirmation and validation of the assumptions of the DART Agency about the growth and general design of the DART system;

o Will provide full services for an initial capacity ramp-up period of 2 years, allowing the

DART Agency sufficient time to build up its internal capacity to manage and further develop the DART system, to refine its vision on the characteristics of the service and to take over some of the scheduling and control functions;

Fund Manager contract:

o Will be tendered around end 2014;

o Will comprise escrow account services.

The following sections describe the main terms and conditions associated with each of those two contracts.

6.2 Service Provider contract

The Service Provider contract will be granted for a period of 12 years and will comprise the following 4

components:

Trunk services component;

Feeder services component;

Equipment component;

Support service component.

In more detail, these 4 components will function as follows.



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6.2.1 Trunk services component

6.2.1.1 Procurement of trunk buses The DART Agency will prescribe a minimum number of trunk buses (Trunk Operational Fleet) to be purchased and financed by the Service Provider and made available for mobilisation for trunk services. The Service Provider will however have the freedom to determine the number of additional trunk buses (Trunk Reserve Fleet) it requires to meet the prescribed number of operational trunk buses in view of repair, maintenance and cleaning constraints.

In the event that demand increases above the capacity of the then Trunk Operational Fleet, the DART Agency or the Service Provider may request the other party to agree to a proposed increase of the Trunk Operational Fleet and the Service Provider shall use best commercial endeavours to provide those additional trunk buses.

6.2.1.2 Operation of trunk services The Service Provider will not enjoy contractual rights on specific trunk routes. Trunk routes will be determined and assigned depending on operational demand requirements as part of the DART system’s scheduling process. The initial detailed schedule for trunk services will be determined by the Service Provider on the basis of the demand assumptions to be provided by the DART Agency and will be subject to DART Agency approval. Reflecting the likely progress of infrastructure realisation, the trunk bus operations component will probably be initially limited to the main trunk corridor between Kimara and Kivukoni and therefore exclude stations of the trunk branches to the Kariakoo and Morocco terminals, which will not be completed upon commencement of Phase 1 services. Following an initial capacity ramp-up period of 2 years the scheduling function will be transferred to the DART Agency, which will then make scheduling decisions and may also calibrate trunk services scheduling requirements for the Service Provider. In particular the DART Agency reserves the right to assign different trunk routes to the Service Provider upon commencement of Phase 2 services. Scheduling decisions or calibrations by the DART Agency will be based on realistic assumptions of what is achievable in view of the operational conditions as well as the size of the Trunk Operational Fleet at that point in time.

6.2.2 Feeder services component

6.2.2.1 Procurement of feeder buses

The DART Agency will prescribe a minimum number of feeder buses (Feeder Operational Fleet) to be purchased and financed by the Service provider and made available for mobilisation for trunk services. The Service Provider will however have the freedom to determine the number of additional feeder buses (Feeder Reserve Fleet) it requires to meet the prescribed number of operational feeder buses in view of repair, maintenance and cleaning constraints.

In the event that demand increases above the capacity of the then Feeder Operational Fleet, the DART Agency or the Service Provider may request the other party to agree to a proposed increase of the Feeder Operational Fleet and the Service Provider shall use best commercial endeavours to provide those additional feeder buses.

6.2.2.2 Operation of feeder services The Service Provider will not enjoy contractual rights on specific feeder routes. Feeder routes will be determined and assigned depending on operational demand requirements as part of the DART system’s scheduling process. The initial detailed schedule for feeder services will be determined by the Service Provider on the basis of the demand assumptions to be provided by the DART Agency and will be subject to DART Agency approval. Reflecting the likely progress of infrastructure realisation, the feeder bus operations component will probably be initially limited to the Mbezi – Kimara route.



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Following an initial capacity ramp-up period of 2 years the scheduling function will be transferred to the DART Agency, which will then make scheduling decisions and may also calibrate feeder services scheduling requirements for the Service Provider. In particular the DART Agency reserves the right to assign different feeder routes to the Service Provider upon commencement of Phase 2 services. Scheduling decisions or calibrations by the DART Agency will be based on realistic assumptions of what is achievable in view of the operational conditions as well as the size of the Feeder Operational Fleet at that point in time.

6.2.3 Equipment component

6.2.3.1 Procurement of equipment

The Service Provider will be responsible for the procurement and installation of equipment in/on:

Trunk stations;

Feeder stations (initially Mbezi only then gradually extended to the full Phase 1 feeder network);

Terminals;

Depots;

The Control Centre.

Additionally the Service Provider will have the obligation to supply compatible ITS and feeder bus fare

collection equipment to other future Service Providers upon request and at prices determined under the

Service Provider contract.

The DART Agency will prescribe the Service Provider’s scope of work for this component as follows:

Station-bound:

o Fare collection hardware and software; o Communication infrastructure; o CCTV equipment and security hardware; o Backup power supply equipment ; o Passenger information displays; o Facility requirements for O&M;

Depot-bound:

o Any and all equipment and infrastructure deemed necessary by the Service Provider to

meet its contractual obligations, such as those required to repair, maintain, clean and refuel the buses;

Bus-bound:

o Compatible trunk and feeder bus ITS equipment upon request from the Service Provider; o Compatible feeder bus fare collection equipment upon request from the Service Provider;

Control Centre:

o Scheduling functionality; o Fleet management dispatching functionality; o Automated fare collection central system, including revenue management and

protection; o Passenger information functionality, including public announcement system

functionality; o Web-based passenger information, including:

Journey planner; Real-Time Passenger Information (RTPI); Alerts (both ‘push’ and ‘pull’ information);



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o Communication infrastructure; o CCTV monitors; o Reporting and Business Intelligence (BI) functionality; o Training of DART Agency staff to:

Operate the systems in the Control Centre; Develop comprehensive schedules for trunk and feeder services;

Unbound:

o Fare media and stored value sales outlets.

A moment of Full System Acceptance (FSA) will be defined which will mark acknowledgement by the DART

Agency of the completion and functioning of the provided equipment as per its requirements.

6.2.3.2 Operation and maintenance of equipment

The DART Agency will prescribe the Service Provider’s scope of work for this component as follows:

Station-bound:

o Operation of the Automated Fare Collection System, including fare media and stored

value sales; o Customer support, including registration and lost/stolen items support; o Prevention of fare evasion; o Cleaning, maintenance and physical security of the stations;

Depot-bound:

o Cleaning, maintenance and physical security of the depots;

Control Centre:

o Operational Control Centre support to the DART Agency; o Maintenance of Control Centre systems; o Configuration of Control Centre systems for Phase 2;

Unbound:

o Operation of fare media and stored value sales.

Following an initial capacity ramp-up period of 2 years, the DART Agency will take over the scheduling and

operational fleet management functions.

6.2.4 Support service component

Following a capacity ramp-up period of 2 years, the DART Agency will take over the overseeing role of the

central AFCS so as to create a levelled playing field between the different Service Providers to be possibly

involved in the DART system in the future. It will however still require support to:

Maintain and operate the central AFCS hardware, software and databases;

Produce daily payment reports to instruct the Fund Manager;

Enable configuration changes, such as new tariffs;

Maintain the security of the system, including key management;

Perform issuance of fare media.



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Consequently the DART Agency will enter into a separate support service contract with the Service Provider

(or its central AFCS equipment subcontractor) for those services under conditions pre-determined in the

Service Provider contract. The duration of the support service contract shall be equal to 12 years minus the

duration between the date of contractual close of the Service Provider contract and the date of contractual

close of the support service contract. This will not modify in any way the general scope of the Service

Provider contract but the client of those specific services will become the DART Agency directly.

6.2.5 Remuneration

6.2.5.1 Overview

The Service Provider will be remunerated for its services as per the fee schedule below.

Table 6. Service Provider Fees Overview

Service Provider Remuneration

Type Guarantees Payment Timing Tender

TF Trunk Km Fee Unit Charge per Trunk Km

Annual Minimum Guaranteed Number of Trunk Km

Starts upon FSA Financial bid criterion

FF Feeder Passenger Fee

Unit Charge per Paid Feeder Passenger Trip

Annual Minimum Guaranteed Number of Paid Feeder Passenger Trips

Starts upon FSA Financial bid criterion

EF Equipment Fee

Fixed Periodic Payment (lowered by SF after capacity ramp-up period of 2 years)

- Starts upon FSA

Financial bid criterion

SF Support Service Fee

Fixed Periodic Payment (taken from EF after capacity ramp-up period of 2 years)

-

Starts after capacity ramp-up period of 2 years

-

RF Revenue Fee Unit Charge per Paid Trunk Passenger Trip

- Starts upon FSA

Pre-set per Paid Trunk Passenger Trip

Source: DART Agency

In addition the Service Provider will be free to retain full advertisement rights on some areas in the stations

and terminals, on its buses (inside and outside) as well as on the Contactless Smart Cards. Rules and

regulations pertaining to advertising will be specified in the Service Provider contract.

6.2.5.2 Trunk Km Fee (TF)

Following FSA the Service Provider will receive a fee per trunk km travelled by each trunk bus as part of the

trunk services. This fee will be paid monthly and in TZS. The Trunk Km Fee will be subject to periodic

indexation as per a formula containing a number of prescribed indices.

In addition, if in a continuous period of twelve calendar months commencing from FSA and then onwards on

an annual basis, the yearly average number of trunk km travelled by trunk buses as part of the trunk services

is lower than 70,000 per trunk bus (Annual Minimum Guaranteed Number of Trunk Km), the DART Agency

will pay the difference to the Service Provider based on 60% of the Trunk Km Fee.



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6.2.5.3 Feeder Passenger Fee (FF)

Following FSA the Service Provider will receive a fee per paid feeder passenger trip (combined trips including

two feeders count twice). This fee will be paid monthly and in TZS. The Feeder Passenger Fee will be subject

to periodic indexation as per a formula containing a number of prescribed indices.

In addition, if in a continuous period of twelve calendar months commencing from FSA and then onwards on

an annual basis, the yearly average number of paid feeder passenger trips is lower than 200,000 per feeder

bus (Annual Minimum Guaranteed Number of Paid Feeder Passengers Trips), the DART Agency will pay the

difference to the Service Provider based on 100% of the Feeder Passenger Fee.

6.2.5.4 Equipment Fee (EF)

Following FSA the Service Provider will receive a fixed equipment fee. This fee will be paid monthly and in

TZS. The Equipment Fee will be subject to periodic indexation as per a formula containing a number of

prescribed indices.

After the capacity ramp-up period of 2 years the Equipment Fee will be lowered by an amount equal to the

Support Service Fee.

6.2.5.5 Support Service Fee (SF)

After the capacity ramp-up period of 2 years the provider of the support service (central AFCS equipment

provider) will receive a fixed support service fee. This fee will be paid monthly and in TZS. The Support

Service Fee will be subject to periodic indexation as per a formula containing a prescribed index.

6.2.5.6 Revenue Fee (RF)

Following FSA the Service Provider will receive a fee per paid trunk passenger trip. This fee will be paid

monthly and in TZS. The Revenue Fee will be subject to periodic indexation as per a formula containing a

prescribed index.

6.2.5.7 Advertising and commercial revenues

The Service Provider will be free to commercialise specified advertising space on and in the stations and

buses as well as on the Contactless Smart Cards and retain associated revenues. The technical specifications

will specify the surfaces allowed for advertising.

6.3 Fund Manager contract

The Fund Manager contract will be granted for a period of 12 years and will comprise escrow account

management services. The Fund Manager will be directly responsible to the DART Agency and will carry out

the following functions:

Put payment procedures in place for the management of the DART system’s resources;

Make payments to the various actors within the DART system upon instruction from the DART Agency on the basis of pre-agreed terms;

Prepare regular financial reports for submission to the DART Agency. The Fund Manager will be remunerated by a fixed annual Agency Fee (AF) resulting from a competitive solicitation of quotes from renown financial institutions in Tanzania.



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7 Investment framework

7.1 Foreign investment policy

Since economic liberalisation all sectors are generally open to foreign investment, including:

Unrestricted access to international arbitration;

Reduced import duty on raw materials;

Straight line accelerated depreciation allowance on capital goods;

Unrestricted right to repatriate profits;

Fast track to obtain permits (residence, work) and industrial licences;

Automatic statutory permission to employ up to 5 expatriates (for more expatriates additional applications can be made in the normal way, but there is no statutory right to employ them);

Government recognition.

7.2 Finance regime

There are generally no restrictions on loans or equity investments into Tanzania. There are however

restrictions on investment in certain sectors where local participation by Tanzanians is mandatory. There are

generally no restrictions on taking security in Tanzania over assets in Tanzania for loans made in Tanzania.

Withholding tax does not apply on loans from Tanzanian banks to businesses in Tanzania. However,

withholding tax does apply to interest paid on loans from foreign banks to businesses in Tanzania. 1

Currently the withholding tax rate is 10%. 2 The Procurement Law does not expressly prohibit the exercise of

step-in rights by lenders.

7.3 Tanzania Investment Centre

The Tanzania Investment Centre (TIC) was established in 1997 3 to be "the primary agency of Government to

coordinate, encourage, promote and facilitate investment in Tanzania and to advise the Government on

investment related matters". All Government departments and agencies are required by law to cooperate

fully with TIC in facilitating investors.

TIC has three main roles as follows:

It is the focal point for investors;

It is a first point of call for potential investors;

It is a "One Stop Facilitative Centre for all investors", engaging in the business of marketing Tanzania as an investment destination.

As a primary agency of the Government in all investment matters, TIC is charged with the following

functions:

Assist in establishment of enterprises e.g. incorporation and registration of enterprises;

Obtain necessary licenses, work permits, visas, approvals, facilities or services;

Sort out any administrative barriers confronting both local and foreign investments;

Promote both foreign and local investment activities;

Secure investment sites and assist investors to establish EPZ projects;

1 Section 84 Income Tax Act 2004

2 Income Tax Act, 2004, Schedule I, paragraph 4(b)(2).

3 Tanzania Investment Act 1997



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Issue “Certificates of Incentives”, investment guarantees and register technology agreements for all investments, which are over and above USD 300,000 for foreign investments and USD 100,000 for local investments;

Provide and disseminate up to date information on existing investment opportunities, benefits or incentives available to investors;

Assist all investors whether or not registered by TIC.

A TIC Certificate of Incentives gives automatic right to hire up to 5 expatriates. If more are needed then

these will be considered on case by case basis.

Projects that are considered to be major or strategic investments are entitled to benefits that are additional

to the ones granted under the Tanzania Investment Act, which the investor can negotiate directly with the

Government.

An investor may also apply to the TIC for a strategic investor status, if it has a project that is over USD 20

million that will have a significant positive impact on the local economy. 4 The criteria for qualifying for

strategic investor status include:

The size of investment and its general impact on the national economy;

Significant job creation;

Export and foreign exchange earning capacity of the project;

The introduction of new technology; and

Investment in specific geographical areas. 5

Applications for strategic investor status are reviewed by the National Investment Steering Committee.

7.4 PPP regime

Public Private Partnerships are governed by the Public Private Partnership Act 2010. The term “partnership”

is defined under the Public Private Partnership Regulations 2011 as:

“an arrangement between a contracting authority (public body) and a private party in which the private

party:

Performs an institutional function on behalf of the institution;

Acquires the use of public property for its commercial purposes;

Assumes substantial financial, technical and operational risks in connection with the performance of the institutional function or use of state property; and

Receives a benefit for performing the institutional function or from utilising the public property, either by way of:

o consideration to be paid by the contracting authority which derives from a revenue fund or where the contracting authority is a central government or a local government authority, from the revenues of such authority;

o charges or fees to be collected by the private party from users or customers of a service provided to them; or

o a combination of such consideration and such charges or fees.”

Basic principles of the PPP framework in Tanzania include:

All PPP projects must be procured through an open and competitive bidding process in accordance with the procurement laws. 6

4 Section 28 Finance Act 2012

5 Regulation 49 The Investment Regulations Cap 38

6 Section 15(2) Public Private Partnership Act 2010



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PPP agreements shall endeavour to provide opportunity for empowerment of the citizens of Tanzania as provided for under the National Economic Empowerment Act Cap 386. 7

7.5 Procurement regime

The Public Procurement Act 2011 (Procurement Act) and Public Procurement Regulations 2013

(Procurement Regulations) govern the public procurement regime in Tanzania. The Procurement Act and

Procurement Regulations came into force on 15 December 2013 under Government Notices 445 and 446

respectively.

The Public Procurement Regulatory Authority (PPRA) was set up under the Procurement Act. 8 The

objectives of the PPRA include the requirement to ensure the application of fair, competitive, transparent,

non-discriminatory and value for money procurement standards and practices. 9

The functions of the PPRA include monitoring the award and implementation of public contracts with a view

to ensuring that:

Such contracts are awarded impartially and on merit;

The circumstances in which each contract is awarded or as the case may be, terminated, do not involve impropriety or irregularity;

Without prejudice to the functions of any public body in relation to any contract, the implementation of each such contract conforms to the terms thereof. 10

The PPRA has wide scope for investigations which includes, amongst other things, to have access to all

books, records, documents, or other property belonging to the DART Agency or a tenderer, whether in the

possession of any officer of the DART Agency or a tenderer. 11

7.6 Big Results Now (BRN)

BRN is an initiative that was launched by the President of Tanzania in February 2013. The Presidential

Delivery Bureau (PDB) is an independent department under the President’s Office, which the President has

set up using the powers vested by him under section 5(1) of the Ministers (Discharge of Ministerial Functions)

Act Cap 299.

PDB follows up closely on the implementation of projects and focuses the attention of top leaderships in

monitoring investment in the prioritised areas. PDB can provide high-level intervention if needed by

discussing challenges in the identified projects at ministerial level.

The Government of Tanzania has selected 6 National Key Results Areas (NKRAs) which it believes require

intervention in order to achieve Big Results Now. Project sectors which will be monitored by PDB as part of

the first wave of the BRN initiative include:

Agriculture;

Education;

Energy;

Water;

Transport;

Resource mobilisation (including PPP projects).

7 Section 25 Public Private Partnership Act 2010

8 Section 7 Public Procurement Act 2011

9 Section 8 Public Procurement Act 2011

10 Section 9(1) Public Procurement Act 2011

11 Section 9(2)(b) Public Procurement Act 2011



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The DART system is one of three PPP projects that PDB is focusing on within the transport and resource

mobilisation NKRAs and as such enjoys strong support from the highest levels of government.

7.7 Local content requirement

The National Economic Empowerment Policy aims to ensure that Tanzanians have access to opportunities

to participate effectively in economic activities in all sectors of the economy. 12 The use of local content in

procurement processes is also encouraged under the Procurement Act and Procurement Regulations.

One of the key principles of public procurement is that tenderers are allowed to participate in procurement

proceedings without regard to their nationality. 13 Tenderers who are either Tanzanian citizens or Tanzanian

firms that form associations with foreign firms, are however eligible to be granted a margin of preference if

they meet the criteria set out under the Procurement Act and are registered with the Public Procurement

Regulatory Authority (PPRA) or any other statutory body acceptable to PPRA. 14

The DART Agency encourages foreign firms to team up with Tanzanian tenderers in either joint ventures or

subcontracting arrangements during the tender process and the execution of the services. For the Phase 1

tenders a margin of preference might be granted to local firms or associations between local and foreign

firms.

7.8 Tax regime

A corporation will be liable to tax if it is incorporated in Tanzania and at any time during the year of income

the management and control of the affairs of the corporation are exercised in Tanzania. 15 Taxes which are

applicable to the private Service Provider’s activities and the project assets include:

Corporation tax;

Gains on realisation or disposal of investment assets;

Value added tax;

Withholding tax;

Stamp duty;

Import/customs duty;

Service levy;

Skills and development levy.

7.9 Employment regime

The Employment Act 2004, the Labour Institutions Act 2004 and subsequent related rules govern all

employment matters in Tanzania. The law covers both foreign and local employees and employers within

Tanzania. Provisions are made under the Employment Act for trade unions and employer associations and

employees have rights under the Employment Act to register with trade unions, and engage in lawful strikes.

As an employer, the private Service Provider will be required to enter into a written contract with a

prospective employee which sets out basic requirements such as a monthly salary, maximum working hours,

provisions for overtime pay, a probationary period to enable the employer to assess if the employee has the

capacity or compatibility of the required job, and fringe benefits. Minimum wages for specific sectors are set

out in the Labour Institutions Wage Order and are revised from time to time. Current minimum wages were

published on 28 June 2013 under the Labour Institutions Wage Order 2013.

12 The Ministry of Planning, Economy and Empowerment website <http://www.tanzania.go.tz/mpee/policy.html> (visited on 27 November 2007)

13 Section 54(1) Public Procurement Act 2011

14 Regulations 33(2) Public Procurement Regulations 2013

15 Section 66(4) Income Tax Act Cap 332 R.E. 2006 as amended

http://www.tanzania.go.tz/mpee/policy.html



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8 Tendering process

8.1 Overview

The Service Provider and Fund Manager will be selected through open and transparent international bidding processes in accordance with the laws and regulations applicable to public procurement in Tanzania. The DART Agency intends to follow the below indicative schedule for the procurement of Phase 1 services: June 2014 DART Phase 1 Market Consultation Session in Dar es Salaam June – November 2014 Service Provider Tendering Process January – March 2015 Service Provider Commercial and Financial Close January – March 2015 Fund Manager Tendering Process April 2015 Fund Manager Commercial and Financial Close

8.2 Service Provider tendering process

The Service Provider tendering process will follow the laws and regulations applicable to the procurement of Public-Private Partnerships. The envisaged process includes a series of steps as follows.

Figure 29. Service Provider procurement process

Source: DART Agency Details of the prequalification and tender criteria will be made available in due time respectively as part of the Request for Expressions of Interest (RFEOI) and the Request for Proposals (RFP).

8.3 Fund Manager tendering process

The Fund Manager tendering process will follow the laws and regulations applicable to general public

procurement. Details of the tendering process will be made available in due time.

Prequalification

Selection of Preferred Bidder

Qualifications Document

Request for Proposals Negotiations

Final Tender

Financial Close

Invitation to Prequalify

Approval

Initial Tender

Final Bidding Documentation

Contract Signing



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9 Contact

For any comments or queries please do not hesitate to contact:

RebelGroup International B.V.

Mr. Jeroen in ‘t Veld

Lead Transaction Advisor

[email protected]

mailto:[email protected]

Project Phase 1 Project Information Memorandum

Documents

Transcript of Project Phase 1 Project Information Memorandum