WORKS Minister, Abdallah Ulega, has partially terminated a road construction contract in Tanga Region after Chinese contractor China Railway 15th Bureau Group failed to meet key obligations.

The company was hired to construct a 95.2km section of the Tanga–Pangani–Mkwaja–Bagamoyo (Makurunge) road—from Tungamaa to Mkwaja to Mkange in Pangani District—but failed to deliver on time despite receiving full payment.

Ulega said here yesterday that the government had paid the contractor 47bn/–, yet only 48 percent of the work was completed. “This contractor has failed us. We’ve paid over 40bn/- but progress is dismal. They lack the necessary equipment and human resources,” he said during an inspection tour. “I’ve decided to revoke part of the project to ensure this long-awaited road for Pangani and Tanga residents is completed.”

He ordered the removal of 25km of untouched road from the existing contract, to be re-tendered for immediate takeover by a new contractor. That section will be combined with an additional 70km from Mkange to Bagamoyo (Makurunge) into a new contract package.

Ulega stressed the decision was made to avoid delays of up to a year that would result from terminating the entire contract. He also instructed the contractor to compensate for project delays and directed a review of the contract for legal and financial remedies. Additionally, he ordered the contractor be blacklisted for underperformance and barred from future public projects in Tanzania.

For the remaining 70km, Ulega tasked TANROADS with ensuring China Railway 15th Bureau Group completes the stretch to tarmac level by October this year. He warned that failure to enforce progress would result in the replacement of supervising personnel.

TANROADS Project Manager Julius Msofe confirmed that the project is at only 47.82 percent, far short of the original target. The initial 36-month contract officially expired on March 31, 2025.