the united republic of tanzania ministry …ed_emp/@emp_policy/...the united republic of tanzania...

THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS

COMPARATIVE STUDY ON THE IMPACT OF LABOUR-BASED

AND EQUIPMENT-BASED METHODS IN ROAD WORKS IN TANZANIA

Final Report

MAY 2004

in collaboration

with

D A I M A K & Associates Professional Services {KAPSEL} Luther House, 4th Floor Sokoine Drive P.O Box 14943 Dar es Salaam Tanzania Ph: (255)-22-211 5639/213 9734/213 9962 Fax: (255)-22-212 8677 E-Mail: [email protected]

Daima Associates Limited GK Patel Building, Suite # 104 Off Maktaba Street P.O Box 75027 Dar es Salaam Tanzania Ph: (255)-22-212 1130 Fax: (255)-22-213 3682 E-Mail: [email protected]

mailto:[email protected]

mailto:[email protected]

_____________________________________________________________________ Comparative Study on the Impact of Labour-Based and Equipment-Based Methods in Road Works in Tanzania

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Table of Contents

FOREWORD AND ACKNOWLEDGEMENT................................................................. III

LIST OF ACRONYMS ........................................................................................................ IV

EXECUTIVE SUMMARY ....................................................................................................V

1.0 INTRODUCTION........................................................................................................1

1.1 BACKGROUND AND CONTEXT...................................................................................1 1.2 ORGANISATION OF THE REPORT................................................................................1

2.0 OBJECTIVE AND METHODOLOGY.....................................................................2

2.1 OBJECTIVE ................................................................................................................2 2.2 METHODOLOGY ........................................................................................................2

3.0 MACROECONOMIC FRAMEWORK AND EMPLOYMENT ............................4

3.1 THE MACROECONOMIC FRAMEWORK .......................................................................4 3.2 LABOUR MARKET AND EMPLOYMENT ......................................................................5

4.0 CHARACTERISTICS OF LABOUR-BASED ROAD WORKS ............................8

4.1 OVERVIEW ................................................................................................................8 4.2 LABOUR BASED TECHNOLOGY (LBT) IN ROADWORKS ............................................8 4.3 LABOUR-BASED PROJECTS IN TANZANIA SINCE 1990: AN OVERVIEW....................12 4.4 COST COMPARISON OF LBT-VS-EBT .....................................................................18 4.5 BENEFITS OF LBT.....................................................................................................6

5.0 FINANCIAL COST COMPARISONS....................................................................12

5.1 EBT AND LBT COST COMPARISONS ......................................................................12 5.2 GENERAL OBSERVATION OF THE ECONOMIC COSTS ANALYSIS ..............................13

6.0 ECONOMIC COST COMPARISON......................................................................14

6.1 THE ECONOMIC COST OF LBT ................................................................................15 6.2 THE ECONOMIC COST OF EBT ................................................................................16

7.0 MACROECONOMIC IMPACTS OF LBT AND EBT: SIMULATION.............17

7.1 EXPLANATION OF THE MODEL ................................................................................17 7.2 EXPLANATION OF THE MODEL PARAMETERS..........................................................17 7.3 MODEL RESULTS OF A PUBLIC INVESTMENT OF TSHS 10 BILLION .........................19 7.4 SENSITIVITY ANALYSIS OF THE SIMULATION RESULTS...........................................21 7.5 IMPLICATIONS FOR POVERTY REDUCTION ..............................................................21

8.0 CASE STUDIES ON IMPACT OF LBT & EBT....................................................22

8.1 INTRODUCTION .......................................................................................................22 8.2 DESCRIPTION OF PROJECT AREAS ...........................................................................22 8.3 EMPLOYMENT, INCOME AND WAGES......................................................................23 8.4 ACCESS TO SOCIAL SERVICES .................................................................................24 8.5 HOUSING.................................................................................................................25


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8.6 GENDER ..................................................................................................................26 8.7 IMMEDIATE IMPACTS ..............................................................................................26

9.0 CONSTRAINTS IN THE USE OF LBT .................................................................32

9.1 GOVERNMENT LEADERSHIP ....................................................................................32 9.2 TRAINING INSTITUTIONS .........................................................................................32 9.3 PRIVATE CONTRACTORS AND CONSULTANTS .........................................................33 9.4 DISCRIMINATORY PROCUREMENT POLICIES AND PROCEDURES ..............................33 9.5 LIMITED ACCESS TO FACILITIES AND FINANCE.......................................................33 9.6 THE PUBLIC AT LARGE ...........................................................................................34

10.0 CONCLUSION AND RECOMMENDATIONS.....................................................35

10.1 EMPLOYMENT AND INCOMES ..................................................................................35 10.2 THE CHALLENGE OF SUSTAINABLE DEVELOPMENT ................................................35 10.3 FINANCIAL AND ECONOMIC COST COMPARISONS ...................................................35 10.4 PROCUREMENT AND FUNDING MECHANISMS..........................................................37 10.5 FROM PILOT TO SCALING UP THROUGH POLICY ACTION.........................................37 10.6 CAPACITY BUILDING FOR LBT TO BE ENHANCED...................................................38 10.7 PUBLIC EDUCATION TO BE LAUNCHED ...................................................................38

REFERENCES: DOCUMENTS AND PAPERS .............................................................40

APPENDIX I: MACRO-ECONOMIC STATISCTICS TABLES .............................43

APPENDIX II: CRITERIA FOR LBT CONTRACTORS...........................................50

APPENDIX III: CRITERIA FOR CIVIL WORKS CONTRACTORS .......................52

APPENDIX IV: STANDARD TOOLS USED FOR LBT ..............................................54

APPENDIX V: LIST OF PERSONS INTERVIEWED ................................................55

APPENDIX VI: PHOTOGRAPHS OF SELECT EBT & LBT ROADWORKS.........61


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FOREWORD AND ACKNOWLEDGEMENT

In 2003 the Ministry of Works with financial support of the International Labour Organisation (ILO) decided to launch a Comparative Study on the Impact of Labour-Based and Equipment-Based Methods in Road Works in Tanzania. M/S KAPSEL (K & Associates Professional Services Limited, Consulting Engineers) were contracted to undertake the study. This is the final report of the study. In executing the assignment KAPSEL collaborated with Daima Associates Limited (Development Consultants and Policy Analysts) and the two firms jointly fielded a Study Team comprising the following experts: Name Role in the Study Organisation Prof. Samuel M. Wangwe Macro Economist (Team Leader) Daima Associates Ltd Eng. Immanuel N. Kimambo Civil Engineer KAPSEL Dr. Samuel M. Nyantahe Mechanical Engineer Daima Associates Ltd Mr. Willy-Alpha E. Kishimbo Transport Economist Transport Resource Centre Ms. Elizabeth M. Temu Social Scientist Twende Associates Ltd Mr. Rashid Kalimbaga Civil Engineer Ministry of Works Mr. Deocary L. Katabaruki Economist Ministry of Works The consultants wish to thank all those who cooperated with the team in providing valuable information for the study through direct discussions as well as structured written submissions. Specifically, the team acknowledges with gratitude the assistance received from officials of the Ministry of Works, the ILO Regional Office in Dar es Salaam, ITECO Office in Morogoro, UNCDF Office in Mwanza, COWI Consult in Tanzania, the TANROADS Regional Manager in Mwanza and the National Construction Council (NCC). Individuals in these organisations devoted their valuable time for discussions and/or providing invaluable information from their experiences of designing, supervising and/or constructing road works. The names of officials contacted are shown under Appendix V of this report. Secondly the Study Team is greatly indebted to Mr. Kwaku Osei-Bonsu of ILO, Geneva, for his support and guidance in carrying-out this study. Useful comments on the Draft Report were received from him and his colleagues in ILO, which contributed significantly to the refining of the final report. Thirdly the consultants wish to take this opportunity to express their gratitude to the Ministry of Works and the International Labour Office {ILO} for entrusting this important study assignment to them and cooperating in providing timely information and guidance. Last, but not least, the team is appreciative of the immense assistance and facilitation services extended by the secretarial staff who were involved in preparing this report, from the two consulting firms, respectively, K & Associates Professional Services {KAPSEL} and Daima Associates Limited {DAIMA} that fielded the experts for the study.


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LIST OF ACRONYMS AIDS - Acquired Immune Deficiency Syndrome ATATAP - Appropriate Technology Advisory and Training Project ATTI - Appropriate Technology Training Institute ATU - Appropriate Technology Unit CIF - Cost, Insurance & Freight CIP - Construction Industry Policy DANIDA - Danish International Development Agency DFRP - District and Feeder Roads Rehabilitation Project DRSP - Districts Roads Support Programme EB - Equipment-Based EBT - Equipment-Based Technology FINNIDA - Finish International Development Agency GDP - Gross Domestic Product HIV - Human Immuno-deficiency Virus IDA - International Development Association ILO - International Labour Office IMT - Intermediate Means of Transport (Non-motorised) KURRP - Kilombero and Ulanga Road Rehabilitation Programme LB - Labour-Based LBT - Labour-Based Technology MIRTP - Makete Integrated Rural Transport Project MOW - Ministry of Works MPCC - Marginal Propensity to Consume Coefficient MPIC - Marginal Propensity to Import Coefficient MRSP - Morogoro Roads Support Programme NBS - National Bureau of Statistics NCC - National Construction Council NGO - Non-Governmental Organization NMT - Non-Motorised Transport (also IMT) NORAD - Norwegian Agency for Development Cooperation NPRS - National Poverty Reduction Strategy NPV - Net Present Value NTP - National Transport Policy RBU - Road Betterment Unit RIPS - Rural Integrated Project Support Programme RSP - Road Sector Programme RUDEP - Rukwa Integrated Development Programme SDC - Swiss Agency for Development and Cooperation TANROADS - Tanzania National Roads Agency TShs - Tanzania Shillings TZS - Tanzania Shillings UNCDF - United Nations Capital Development Fund UNDP - United Nations Development Programme USAID - United States Agency for International Development VAT - Value Added Tax VOC - Vehicle Operating Costs


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EXECUTIVE SUMMARY 1.0 INTRODUCTION This study has been commissioned by the Ministry of Works in collaboration with the ILO within the framework of the Employment Intensive Investment Programmes. The study addresses the case of road works in Tanzania focusing on a comparative analysis of the impact of labour-based and equipment-based methods. Labour-based methods in road works are not new to Tanzania. These methods were used widely in the pre-independence period and later in early years of the post-independence period. In the 1980s and 1990s labour-based technologies were used largely on a pilot basis mainly in various donor funded projects. The question being asked in this study is whether time has not come for scaling up the use of LBT in feeder roads construction and rehabilitation in Tanzania. 2.0 OBJECTIVES The objective of the study is, therefore, to carry out comparative analysis of a number of on-going and completed road projects in Tanzania, and thereby show the qualitative and quantitative benefits of different technologies used in road rehabilitation and maintenance. The team was guided by one key question in the course of the study, which was the efficacy of using labour-based methods in rural roads rehabilitation as a means of generating employment opportunities and contributing towards economic development and poverty reduction as well as offering greater prospects of sustainability compared to equipment based methods. 3.0 METHODOLOGY The methodology that has been followed in this study is that of making comparisons between LBT and EBT based on financial and economic cost comparisons, macroeconomic modeling the impacts of LBT on key macroeconomic variables such as GDP, trade balance and employment as well as impacts derived from case studies. Data and information has been collected based on both desk review and field work. Desk review involved collection of data and other information from existing project documents and reports on the subject. It involved collection of macroeconomic data with a view to establishing trends in key macroeconomic indicators since 1990. Field data collection was undertaken involving collection of information from on-going and completed projects. The core part of the study entailed getting accurate data on road projects that have been executed by LB and EB technologies in the same geographic areas.


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4.0 MAIN FINDINGS 4.1 The study has shown that Tanzania has made considerable improvements in

macroeconomic performance. The key challenge remaining is that of translating macro-level achievements to improved standards of living of the majority of the people in households and communities especially in the rural areas. The macro-micro linkages are still weak. One of the key channels linking macroeconomic performance and micro-level living conditions is employment. The analysis of the labour market and employment shows that the majority of Tanzanians are engaged in self-employment largely in agriculture, underemployment is high and has been rising in the last decade and its variation seasonally is considerable. These conditions indicate that there is room for more employment especially in the rural areas where the majority (90%) of the poor reside. The main challenge of employment in Tanzania is increase opportunities of satisfactory or more decent incomes from the economic activities. The challenge of policy is to influence investment allocation and choice of technology so that the patterns of employment and income generation are more consistent with poverty reduction primarily through pro-poor growth.

4.2 Labour based technologies have been implemented successfully in regions such as

Tanga, Mbeya, Rukwa, Mwanza, Kilimanjaro, Arusha, Shinyanga, Morogoro, Lindi, Mtwara, Iringa, Kagera and Coast. There is substantial evidence that the pilot phase has proved the impact of LBT on employment and income generation for poor households and communities.

4.3 Considering that resources are limited it has been found that with a given amount of

resources LBT approaches are capable of yielding a greater length of feeder roads on average, can generate more employment and incomes among households and communities and is therefore more consistent with the poverty reduction strategy and the recent official agricultural and rural development strategies as well as the national transport policy and the construction policy.

4.4 Financial and economic comparisons have favoured LBT. Based on the data that was

obtained from the field and reported in Table 4.4(b) average costs for LBT and EBT road works were computed. It was found that the average cost per km for 135.3km of LBT road rehabilitation was shs. 11.2 million compared with shs.16.4 million per km as an average of 163.8 km of roads rehabilitated using EBT. The share of labour cost in total cost was 31.6% for LBT and 7.9% for EBT. The share of cost of equipment hire was 22% for LBT and 35.3% for EBT. When cost of supervision is added the share increases to 41.7% for LBT compared to 15.4% for EBT. As pointed out earlier these are averages which could be marred by variations in terrain and intensity of rehabilitation needed. average costs per km adjusted for intensity of rehabilitation and terrain show that LBT road works are generally lower by between 26% and 38% depending on the specific conditions of roads being compared. Net present values are higher for LBT than EBT. In view of the recent policy concerns about poverty reduction and rural development and the high priority that is being accorded to rural


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roads. This superiority of LBT is reinforced even further when economic cost comparisons are made externalities, linkages on employment and poverty reduction effects as well as foreign exchange savings associated with LBT.

4.5 Macroeconomic modeling and case studies have reinforced the above findings. The

results from case studies have demonstrated positive medium term and long term socioeconomic benefits of LBT. The positive impacts come through employment and income generation and improved standards of living among rural households and communities. In addition, LBT was found to be more consistent with participatory development and empowerment.

4.6 The development of the local construction industry is hampered by low capacity of

contractors, inadequate work opportunities aggravated by in appropriate contract packaging of works, corruption and limited access to credit facilities. Many of the Contractors who were interviewed in Morogoro and Mwanza during this study are positive on the use of LBT. However, conditions on the ground are difficult especially procurement procedures and regulations and , access to LBT equipment and facilities.

4.7 Public awareness and commitment towards labour-based and community based

delivery arrangements is still low. Communities are therefore not empowered enough to put across their preference for LBT even where it is clear that it benefits them.

5.0 RECOMMENDATIONS 5.1 It is recommended that the government should acknowledge the successes that have

been demonstrated in the pilot projects which have adopted LBT in road works and scale up these experiences into a concerted national policy followed by an action plan to implement the national policy on LBT in road works. Action plans need to be prepared with identifiable indicators, which can be monitored on a continuous basis. Government leadership should be held accountable for preparing and monitoring these action plans. Government leadership should be held accountable for preparing and monitoring these action plans. Ownership of LBT Programme will need to be clarified to indicate who will be responsible for co-ordination and implementation. Responsibility should be shared between the Ministry of Works, PORALG and District Councils during the preparation of the Action Programme. However, government efforts will need to be complemented by the efforts of other stakeholders.

5.2 Implementation co-ordination should be addressed institutionally by putting in place

a national focal point for LBT where all information will be collected, stored and disseminated and where co-ordination linkages and interactions among stakeholders will be managed.


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5.3 There is need to examine and revisit existing procurement, regulations and funding mechanisms at all levels (nationally, regionally and internationally) to ensure that adoption of LBT is not held back by discriminatory procedures, systems and financing mechanisms.

5.4 The shift towards the use of LBT is a process, which needs to be catalyzed by

appropriate education to the leadership at all, levels as well as to the professionals in the field. There is need to inform the leadership at all levels on the facts about the benefits of LBT and its viability in roads construction and rehabilitation in Tanzania. Information dissemination on facts from concrete experiences should form the basis for mainstreaming LBT in road works in the rural areas. Public opinion and leadership in local councils, central government and othe implementing agencies need to be informed systematically on the viability and benefits of LBT in general and to community development in the local areas in particular.

5.5 Information about superiority of LBT needs to be backed by the requisite capacities

and attitudes among professionals. In particular, consulting skills are largely biased towards EBT. The capacity of consultants in LBT will need to be built. The process of building these capacities and changing attitudes should be spearheaded by training institutions and other implementing agencies. Training institutions need to be challenged to incorporate more systematic training in LBT. Training institutions, in particular the leadership need to be challenged to incorporate more systematic training in LBT. This will require that curricula be revisited with an LBT perspective. It is recommended that a national training center and training programme be developed and guidelines on planning and budgeting for LB works be introduced to client organizations. Existing knowledge gaps should be filled through research.

5.6 Private contractors are key actors in the execution of LBT road works. The capacity

of private contractors need to be built in the area of LBT. In particular, preference should be given to community-based contractors who can make use of labour in the communities and develop the requisite skills accordingly. Capacity building of contractors should be accompanied with revision of contract documentation and tendering procedures, revisiting standards and specifications and improving access to financial services and working facilities such as equipment and tools.

5.7 The domestic market for LBT type of equipment needs to be created and developed.

Such equipment should not only be supplied through specific donor funded projects. It is expected that as LBT approach moves from the pilot stage and is scaled up to become the national approach for rural feeder road construction and rehabilitation then conditions for developing the domestic market for LBT equipment will have been created. However, in order to facilitate early development of the domestic market for such equipment there is need for policy intervention to create and develop that market.


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1.0 INTRODUCTION 1.1 Background and Context The Ministry of Works in collaboration with the ILO decided to carry out a study on the impact of Employment-Intensive and Investment Programmes on Poverty. The study is intended to show the macro-economic impact on the Gross Domestic Product, the balance of payments, and on the employment situation, of different technologies used in road rehabilitation and maintenance. A comparative analysis of a number of on-going and completed road projects in Tanzania using both Labour-based and Equipment based methods is being carried out under this service. Labour-based road works has been practised in Tanzania for more than two decades, but on a rather low key, and to some extent informal way. Since the early 1990's, various institutions in the road sector took initiatives in promoting Labour Based Technology (LBT), and getting it institutionalized. The Ministry of Works (MOW) has led the way in these initiatives by setting up an Appropriate Technology Unit (ATU), which is responsible for, among other things, technical standards, and development of manuals on LBT. Other initiatives taken were the development of small-scale local contractors capable of carrying out maintenance and improvement works using LBT, and their registration as specialist category of contractors. The initiatives taken so far have shown the potential of LBT in Tanzania and what could be achieved at an affordable cost whilst creating employment in rural communities and the resultant impact on poverty reduction. However, this impact has not been sufficiently documented and the linkages between project inputs and effects on poverty have not been investigated. This study intends to contribute to filling these gaps 1.2 Organisation of the Report Chapter 2 of this report presents the objectives and methodology that has been adopted in the report. Chapter 3 addresses the macroeconomic framework and how it has been evolving in Tanzania in the last decade starting from 1990. The overview of the macroeconomic framework examines trends in macroeconomic variables notably GDP growth and structure over time, the evolution of prices, developments in external trade and examines budget developments. It then proceeds to examine more specifically the evolution of the labour market and employment over this period. Chapter 4 examines the main characteristics and benefits of labour-based technology as applied to the roads sector. In chapter 5 financial cost comparisons are made and in chapter 6 economic costs comparisons are addressed. Chapter 7 examines macroeconomic impacts of LBT and EBT based on macroeconomic modelling. Chapter 8 makes comparisons of the LBT and EBT impacts based on case studies. Having demonstrated the many benefits of LBT over EBT it is puzzling that the LBT approach has not been adopted more widely at the national level. This puzzle leads to the discussion of constraints to the adoption of LBT in Chapter 9. Chapter 10 draws conclusions and makes appropriate recommendations.


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2.0 OBJECTIVE AND METHODOLOGY 2.1 Objective The objective of the study is, therefore, to carry out comparative analysis of a number of on-going and completed road projects in Tanzania, and thereby show the qualitative and quantitative benefits of different technologies used in road rehabilitation and maintenance especially in rural areas. The team was guided by one key question in the course of the study, which was the efficacy of using labour-based methods in rural roads rehabilitation as a means of generating employment opportunities and contributing towards economic development and poverty reduction as well as offering greater prospects of sustainability compared to equipment based methods. 2.2 Methodology This section presents the methodology that has been adopted in this study. The methodology that has been followed in this study is that of making comparisons between LBT and EBT based on financial and economic cost comparisons, macroeconomic modeling the impacts of LBT on key macroeconomic variables such as GDP, trade balance and employment as well as impacts derived from case studies. Data and information has been collected based on both desk review and field work. Desk review involved collection of data and other information from existing project documents and reports on the subject. It involved collection of macroeconomic data with a view to establishing trends in key macroeconomic indicators since 1990. Field data collection was undertaken involving collection of information from on-going and completed projects. The core part of the study entailed getting accurate data on road projects that have been executed by LB and EB technologies in the same geographic areas. This involved discussions with relevant MoW officials and evaluation of information from existing project documents and reports on the subject. Projects were selected from different parts of the country, targeting comparable projects executed by the different technologies, since 1990. Having identified the possible projects for detailed examination, contacts were made with project engineers concerned with these projects and project documents and reports were studied closely. Data extracted from the reports included: Design standards adopted for the different projects; Construction time; Cost of project, broken down into elements such examination of the payment certificates, and/or the Final Account for each project. Breakdown of labour costs by function, daily wage and quantity (workdays) as well as collecting information on major problems affecting LBT and EBT projects. A structured questionnaire was used to collect cost data on labour, equipment and materials. The case studies were examined through the collection of quantitative and qualitative data in two locations in Morogoro Rural District and in three rural districts in Mwanza where labour-


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based and equipment based projects were recently completed/ongoing. This data was complemented by information and reports from on-going and completed road maintenance projects (both LBT and EBT). Case study information was collected through focused group discussions, targeted brief interviews and on the spot (field) observations. The main tool used for gathering information and data in the study was unstructured interviews and focused group discussions with immediate beneficiaries. This provided valuable information on short and medium term impacts. In villages/ areas along the roads, household questionnaires were administered to randomly sampled households. The household questionnaires were primarily quantitative although they included some qualitative questions. The interviews captured a sample of men and women farmers, artisan fishermen, traders, millers, transport operators, road workers, contractors, health workers, teachers, artisans, drivers, petty traders, District Engineers, Contractors, Gang leaders, Village administrators and other Ministry of Works officials. Literature review of similar studies carried out in other parts of the world was carried out. Although the terms of reference do not specifically mention, the Consultant found it useful to review documents on LBT in other parts of the world, so as to learn from their experiences, and be able to draw meaningful conclusions. In particular, recent studies on Uganda and South Africa on labour based methods of road construction were consulted. Data analysis: The data and information that was collected from documents and from fieldwork was analysed with a view to making appropriate cost comparisons: comparison between LBT and EBT was made based on financial costs and on economic costs. Economic costs were obtained by taking into account various externalities and wider economic implications of the financial costs involved. In order to capture the macro-economic impacts of LBT, a simple macroeconomic model was constructed in which key relevant economic relationships were reflected. Through simulation impacts on key macroeconomic variables was estimated. The results of macroeconomic modeling of impacts were complemented by the case study approach. The variables which were addressed include income and employment, social services such as education, health, housing, markets, prices, expenditure patterns, ownership of assets, community participation, capacity building, empowerment, gender relations and HIV/AIDS. Data from past evaluation exercises provided indication on the behaviour of VOC after completion of road works under LBT and EBT. The analysis of the costs was used to address the implications and impacts on transport costs and business implications of the improved roads as indicated by factors such as travel time, fuel consumption, vehicle maintenance costs and increase in the transportation of fresh crops to markets. Non-motorised transport has also been considered in the analysis since it is part of the dominant modes of transport in areas where LBT projects are being implemented.


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3.0 MACROECONOMIC FRAMEWORK AND EMPLOYMENT 3.1 The Macroeconomic Framework Developments in the macroeconomic framework in Tanzania took a major turn in 1986 when the government made a decision to shift macroeconomic management from a centrally planned, administratively controlled public sector led economy towards a market oriented and private sector led economy. The major shift in the approach to economic management in the country was in response to the severe economic crisis in the late 1970s and 1980s whereby the overall economic performance declined to low levels and macroeconomic imbalances emerged. GDP growth declined to 1 percent per annum during 1980-85; key sectors such as agriculture performed poorly; and the exchange rate got off equilibrium with large currency overvaluation putting strains on balance of payments. The budget deficit kept on growing and monetary developments were characterized by high rates of inflation in excess of 30% and negative real interest rates. The macroeconomic reforms that were introduced had the objective of sustaining a stable macroeconomic environment and higher growth. The growth of the economy has increased and macroeconomic stability has achieved to a large extent. GDP has been increasing steadily over the period 1990-2002 especially after 1998 reaching 5.7% in 2001 and 6.2% during 2002 (Table 3.3). Most of the growth has come from agriculture although smaller sectors such as mining and tourism have grown even faster (table 3.3). Mining recorded 13.5% growth in 2001 and 15% in 2002. Steady growth in mining over the last decade has led to an increase in its share in the GDP from 0.9% in 1990 to 2.7% in 2002. The growth of manufacturing and construction has accelerated since 1996 reaching 8% for manufacturing and 11% for construction during 2002 (Table 3.3). The structure of the economy is dominated by agriculture with a share of some 45-50% over the period 1990-2002 (Table 3.2). The services sector dominated by trade, hotels and restaurants and financial and business services constitutes a significant part of the economy. In 2002 trade, hotels and restaurants accounted for some 17% of the GDP while financial and business services accounted for about 10% of the GDP (Table 3.2). Improvement in macroeconomic stability has been marked by positive developments in price trends with the price index of goods and services consumed by urban residents decelerating from 35.8% in 1990 to 4.5% in 2002 (Table 3.4). The overall rate of inflation has declined from over around 25-30% in the early 1990s to single digit figures as from 1999. In 2002 the rate of inflation was as low as 4-5%. Trends in public finance have shown improvement with government revenue increasing from Tshs. 242 billion in 1993/94 to shs.1184 billion in 2002/2003 (Table 3.6). Most of the government revenue (over 90%) has originated from taxes. The deficit in the budget has been high with the balancing factor being foreign aid. With aid accounting for some 40% of the budget it is apparent that budget management is not sustainable as yet. That is a major challenge for development of the economy.


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Developments in external trade are positive with exports having increased from US$397 million in 1992 to $903 in 2002 (Table 3.5). Imports over the same period increased more slowly from $1317 million to $1511 million. Trade balance, balance on the current account and the overall balance of payments have shown considerable improvement over the period. However, the role of aid is still significant implying that the challenge of shifting towards less aid dependence is real both from the perspective of the budget and balance of payments. Trends in the evolution of the macroeconomic framework indicate considerable improvement in macroeconomic management. In fact Tanzania has been commended for the achievements in macroeconomic management compared to other African countries. The key challenge that needs to be addressed now is the translation of these macro-level improvements into micro-level benefits to households and communities especially in the rural areas where 90% of all the poor in Tanzania reside. This requires action to reinforce the macro-micro linkages. One of the key channels of transmitting benefits of macroeconomic performance into improved standards of living among households and communities lie in generating employment and related income generating activities at that level. The status of the labour market and employment is presented in the next section (Section 3.2). 3.2 Labour Market and Employment Tanzania has a population of 34.6 million people of whom 16.9 million are males and 17.7 million are females. The population is growing at 2.9% per a year (1988-2002) with a regional distribution ranging from 1.4% in Lindi to 4.8% in Kigoma. Large urban areas, for instance, Dar es Salaam, urban Zanzibar and Mwanza, are dominated by high rates of growth. Also, there are regions where much of the growth may be due to the recent influx of refugees (Kigoma). Tanzania has a population density of 39 people per square km with a regional distribution ranging from 12 people per sq. km in Lindi to 1,793 people per sq. km in Dar es Salaam region. According to the integrated labour force survey (2001/02) total labour force (age 10 years and above) has increased from 11.2 million in 1990/91 to 17.8 million in 2001. This implies that 650,000 new people have been entering the labour market every year. The NBS (2002)1 stated that although most Tanzanians still depend on agriculture, households have diversified their economic activity. Out of 17.8 million labour force 15.5 million are employed including self-employment. These are distributed as follows:

• 84.0% in Traditional agriculture • 6.0% in the informal sector • 4.0% in the private formal sector • 3.5% engaged in domestic work • 2.0% in government

1 National Bureau of Statistics (NBS): Household Budget Survey 2000/01, Dar es Salaam, 2002.


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• 0.5% in the parastatal sector Unemployment stood at 2.3 million people (1.3 million women and 1.0 million men) equivalent to 12.9% of the labour force. By the standard definition2 of employment, the rate of underemployment was 11.2% in 2000/01 up from 4.3% in 1990/91. However, by the national definition, underemployment is 6.1% with the incidence being higher among men (6.8%) than among women (5.5%). Under employment occurs in all areas, urban and rural. The situation of underemployment has worsened in the rural areas compared to the urban areas over the last decade. This is an indication that room for engaging the rural population in new job opportunities such as public works has increased. The majority of those who are underemployed are those working in their own or family farms (shambas). The majority of those who were underemployed indicated that they were ready to work if more work was available. The status of underemployment is dampened by the yearly average. Underemployment is more severe in the months when the level of agricultural activities is relatively low. Formal salary/wage employment constitutes a small proportion of total employment in Tanzania. With public sector reform the share of formal employment in the public sector has even declined. There has also been a drop in government and parastatal employment – from 5.2 to 2.5 per cent of adults. There has been a rise in private sector employment and in self-employment, which are now the main activities of 40 per cent of adults in Dar es Salaam and 31 per cent in other urban areas. Labour participation rates of the economically active population in 2000/01 were found to be 68% in the urban areas. The national average is 80%. In the rural areas the labour participation rates vary considerably from 77% in April – June to 88% in January – March (ILFS 2000/01). These variations reflecting seasonality are an expression of the potential for employment in public works and other activities especially during the less busy seasons. The employment to population ration (the proportion of the target population that is employed) is 76% nationally. This ratio is lower in urban areas (58%) than in rural areas (81%). However, labour productivity and incomes generated in the rural areas are lower on average. The mean monthly income of the self-employed in agriculture is Tshs. 21,291/= compared to the national average of Tshs. 36,005/=. The level of incomes earned per months is higher for paid employment (mean of Tshs. 50,000/= and median of Tshs. 30,000/=) than for self-employment (mean income of Tshs. 36,000/= and median income of Tshs. 17,143/=). The distribution is quite skewed at 0.22 for paid employment and 0.55 for self-employment.

2 ILO - International Labour Organisation (2000)


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According to the Household Budget Survey 2000/01 household consumption increased by 17% between 1991/92 and 2000/01. However, rural households increased consumption by only 11% indicating that the urban – rural gap has widened. During 1991/92 – 2000/01 Poverty has declined slightly by 3 per cent points from 39% to 36% in terms of basic needs poverty line and from 22% to 19% in terms of those below the food poverty line. Rural areas continued to have the highest poverty levels. Poverty remains overwhelmingly rural, with 87% of the poor living in rural areas. Although income from agriculture is dominant 40% of rural household income originates from non-farm activities. The proportion of rural households who derive their incomes from more than 3 sources in 65%. Expenditure per capita per month is Shs.10,120 (national average) with the average in rural areas being lower at Shs.8,538. Mean expenditure per household is Shs.59,935 nationally and Shs.52,649 in rural areas. The structure of expenditure is dominated by food (65.4%) of which 35.2% is purchased and 31.8% is not purchased, durables (7.1%), medical expenditure (2.1%), non-durables (22.1%). Overall the status of the labour market and employment in Tanzania depicts the dominance of employment (mainly self employment) in agriculture which is also seasonal. High poverty levels, underemployment and seasonality in the rural areas indicate high potential for engaging the rural population in new job opportunities which can generate new incomes. Public works, and road works in particular, can be a substantial source of employment which benefit the people engaged in such works while the output of their work improves infrastructure needed to support other economic activities.


8

4.0 CHARACTERISTICS OF LABOUR-BASED ROAD WORKS 4.1 Overview This chapter presents the rationale for the use of Labour-Based Technology (LBT) in road works and gives an overview of the labour-based projects in the country since 1990 and proceeds to make a comparison of selected LBT and EBT projects supported by DANIDA, SDC and UNCDF. This is followed by more detailed cost comparisons of selected roads done using LBT and EBT. 4.2 Labour Based Technology (LBT) in Roadworks 4.2.1 Definition of LBT:

Labour-Based Technology (LBT) is a construction technology which aims to apply a labour-and-equipment mix that gives priority to labour, but supplements labour with appropriate equipment where necessary for reasons of quality or cost. While producing or maintaining infrastructure to a specified standard in a cost-effective manner, people are employed on labour-based works with fair working conditions.

If a piece of infrastructure is to be constructed or maintained, a choice can be made to use either labour or equipment as the predominant input in the process.

It is important to distinguish between an optimum and efficient use of labour (labour-based) and a maximum, and possibly inefficient, use of labour (labour-intensive). However, a maximum use of labour may be preferred to efficiency where income generation and job creation are the over-riding, short-term objectives - for instance disaster relief, or food-for-work projects.

The term labour-based therefore implies that a flexible and optimum use is made of labour as the predominant resource, accompanied by appropriate light equipment to ensure cost-effective and quality aspects in construction. Thus labour-based technology uses properly planned labour in an economically efficient, humanly fair, and hence sustainable manner. It is meant to produce technically sound results and be socially and economically competitive with alternative equipment-based methods.

The use of labour-based methods also implies the increased use of associated local resources. These may include locally available materials, tools and equipment, skills and knowledge as well as finance.

4.2.2 Prerequisites on the Choice of Technology in Road Works

Before selecting the technology to be used in any project, one must be satisfied on the appropriateness of his/her choice, as far as availability and affordability of the resources to be used is concerned. In other words, the economic and technical feasibility of the project must be clearly weighed, both in the short-term and in the long-term. This includes the sustainability of the project in terms of maintenance. Thus, before one can choose whether to


9

adopt EBT or LBT for a particular road project, one must be satisfied on the availability of equipment or adequate supply of productive labour force, on a sustainable basis, and evaluate the economic benefits of each. For a country like Tanzania, which has a chronic shortage of capital, and an abundance of underemployed labour, one would expect the choice to come naturally, but in practice this has not been the case, and hence, the need for feasibility studies.

4.2.3 Problems with Sophisticated Construction Equipment Having defined what LBT is, it is appropriate to make few remarks on the well-known EBT and some of its drawbacks for a developing economy like Tanzania. Whereas EBT is acknowledged to be able to deliver quick results, it can also be very frustrating, inefficient and unproductive for a number of reasons or if certain conditions are not met, which is more often than not in poor countries. Technologies which are rated efficient in developed country conditions can be rendered inefficient and less productive because of the conditions that are found in least developed countries like Tanzania. It is well-known that equipment/plants used in roadworks are manufactured in developed countries using latest technology and their usage often assumes developed country conditions. For instance, their utilization and maintenance demands high skills and careful planning. The following are some of the main constraints in the successful operation of road construction equipment:

Specialized and dedicated function (can only be used for one operation) are often not appropriate for conditions of small jobs in poor countries.

Inter-linked equipment (e.g. dozer, loader, trucks, motor grader, water-bowser, roller all required for gravelling) often result in work grinding to hault when one link in the chain breaks down.

Sophisticated equipment is of high cost and their importation consumes the badly needed foreign exchange

High costs of spares and long spares supply lines and delivery time, a situation which is aggravated by frequent model “improvements” causing spares procurement and stocking problems and “planned” obsolescence.

Limited local market for equipment sales of each model Few dealers are able to provide the necessary close support towards maintenance. High capital costs reduce the amount of employment that could otherwise have been

created. Sophisticated systems often require specialist operators who are not easily available in

least developed countries. Specialist repair and maintenance skills and tools that is needed is beyond reach in

many rural areas of least developed countries like Tanzania. 4.2.4 Recognition of Labour-Based Contractors Traditionally, departmental force-account units carried labour-based road works. However, with the on-going reforms in the public sector whereby execution of works is being delegated to the private sector, efforts have been made to train and develop labour-based contractors. Admittedly this has been an uphill task. This is because lack of a conducive environment favouring the recognition and mainstreaming of the labour-based contractor has led to labour-


10

based contracting to be seen among certain circles as only project oriented, externally influenced and a non-sustainable initiative thus deterring its development. Having realized the current and future potential and importance of labour-based contractors in Tanzania, the contractors Registration Board (CRB) began registering Labour-Based Contractors (LBC) as Specialist Contractors. However, this category of contractors is not well known as yet. Having realized the potential and importance of labour-based contractors in Tanzania and following repeated calls by the advocates and promoters of labour-based technology (LBT) for recognition of the contractors, the Contractors Registration Board (CRB) introduced a category of Labour-based Specialist Contractors in July 2000. Labour-based contractors are regarded, as specialist contractors related to civil works. It is envisaged that the recognition of the labour-based contractors by the Board would stimulate their development and open-up work opportunities and access to development assistance including training normally provided to other registered Contractors. The Tanzania Contractors Registration Board (CRB) which was established in 1997 registers contractors of different types both in Local and Foreign category. There are five main types of contractors namely Building, Civil, Electrical, Mechanical and several types of Specialist contractors, who specialize in specific trades of contracting such as glazing, plumbing, drilling, roofing, labor-based etc.

4.2.5 Registration Criteria for Labour-Based Contractors The principal requirements for registration of a labour-based contractor with the Board are:

• The Applicant should have received the appropriate training in relation to labour-based technology and should have the necessary staff, set of hand tools/equipment and control/measurement aids for execution of the intended works.

• The Applicant must have a permanent office and a registered Business Name or Limited Liability Company certified by the Registrar of Companies.

There are only three (3) classes for the specialist contractors, whereas general civil works contractors are categorized into seven classes. This is because the nature and size of specialist works do not differ significantly from one another. A labour-based contractor (LBC) is supposed to meet the minimum requirements for staff, plant, equipment, handtools, control/measuring aids, safety gear, office, financial requirements and experience as shown in Appendix II herein. By comparison, the registration requirements for LBC are more lenient than those for general civil works contractors (Appendix III). Entry conditions for Labour-Based Contractors are also relaxed, and this gives opportunities to those with basic training in labour-based road construction and maintenance to practice. Furthermore, capital required for labour-based contractors in the LBC entry level (Class III) is also quite modest.


11

4.2.6 Standard Tools and Equipment for LBT During the study the need for tools, equipment and associated machinery for labour-based road works in the country was assessed. Furthermore, consideration was made for possibilities of local manufacturing and suppliers of the same, to the required specifications. Critical examination of hand tools and equipment for LBT, namely:

• identify basic tools • identify supply sources (also constraints, if any and recommend remedial measures) • assess operator skills, and HR needs • service, repair and maintenance requirements

Tools for LBT Road Works are classified into 7 categories, namely:

1. Handtools 2. Control & Setting Out Tools 3. Haulage and Transport 4. Compaction 5. Grading 6. Culvert Moulds 7. Soil, Concrete & Road Testing

The full list of tools and equipment is included under Appendix IV herein. A striking feature of the standard tools for LBT works is that they are simple to use and can be obtained from local sources. A number of established facilities exist for manufacturing and repair of the basic tools, including those that may have initially been imported. Application of LBT could therefore stimulate establishment of cottage industries for manufacture of select tools and equipment. 4.2.7 Materials Used for Road Works Current practice relating to the use of materials for a given quality of road does not differ significantly between LBT and EBT. However, as road construction, rehabilitation and maintenance become more decentralized to local government and local communities and as planning and design of development programmes including infrastructure works continue to be decentralized it is envisaged that research on local materials would also be decentralized. This will create a conducive institutional arrangement for promoting optimal use of local resources including materials and community level skills. Some of the materials procured locally in the vicinity of road works may be non-standard or even of lower quality but using such materials in an appropriate manner and using community level human resources would be more consistent with the poverty reduction strategy. The channels of poverty reduction would be through creating jobs and incomes for the rural communities and promoting ownership and participation in development programmes..


12

4.3 Labour-Based Projects in Tanzania since 1990: an Overview 4.3.1 Developments Construction of roads by labour-based methods was practised in parts of the country for self-help schemes for many years. However, for government sponsored projects the trend was normally to go for equipment–based methods except for tasks that could not be easily done by equipment. Labour–based technology (LBT) was perceived as backward technology equated with a thing of the past. In the early 1980s when equipment availability in the country started to become a major bottleneck in the execution of projects, the voices of advocates of labour-based technology started to catch the attention of the public, although these still sounded like “cry in wilderness”. Hence, it was not until 1992/93 that the Ministry of Works, with the financial support of NORAD, started to take serious steps in the direction of LBT by setting up an Appropriate Technology Advisory and Training Project (ATATAP). The project established two (2) Appropriate Technology Training Institutes (ATTI) in Mbeya and Tanga, and subsequently an Appropriate Technology Unit (ATU) in the Ministry. ATATAP and ATU have been instrumental in raising awareness of the great potential of labour-based technology in the development of the country. The experience with labour-based road projects in different parts of the country can be summarized as follows: (a) Tanga and Mbeya Regions Tanga and Mbeya Regions benefited from support by NORAD since 1972 through the Road Betterment Units (RBU) (1972-78), the Rural Roads Maintenance Programme (RRM) (1979-90) and the Road Sector Programme (RSP) (1991-2002). While the RBU was set up to improve agricultural feeder roads by equipment-based technology, both the RRM and the RSP focused on developing institutional capacity at regional level to enable the regions to carry out maintenance and reconstruction of the regional roads. In both projects attention was paid at training of staff and the use of appropriate technology. Labour-based methods were introduced as an appropriate technology that could solve the long-term problem of maintenance due to lack of equipment. Currently these regions have a number of staff with training and experience in labour-based methods. The labour-based rehabilitation and maintenance works were carried out mainly by departmental, or force account units. Women participation was also given serious attention. (b) Kilimanjaro, Shinyanga, Arusha and Mwanza Regions The National Construction Council (NCC) in collaboration with the International Labour Office (ILO) carried out the Labour-based Contractors Training Project from 1992 to 1997. A total of 12 Contractors were trained from each of the four regions. The training involved


13

classroom training and field practice, followed by trial contracts for each trainee Contractor. Unfortunately for Arusha the training cycle was not completed, hence the trainees were not fully trained. However, Mwanza ended up to be the biggest beneficiary of LBT through the support of UNCDF. This is presented in more detail below: (c) Rukwa Region A rural development programme for Rukwa (RUDEP) was set from 1986 to 1995 with support of NORAD, and with a focus on the agricultural sector. Part of the programme was improvement of regional and district roads. ILO assisted in piloting the introduction of labour-based road rehabilitation and maintenance in Sumbawanga district. The stated objectives for going LB were:

To reduce reliance on expensive equipment; To use the abundant cheap local labour resources generating employment; To establish labour-based construction as a viable technology; To develop tools and techniques suitable for LBT; and To develop a labour-based maintenance system, suitable for application to most rural

roads in Rukwa Region. (d) Morogoro Region SDC through KURRP were involved with rehabilitation and maintenance of roads in Ulanga and Kilombero districts using labour-based methods for district roads and equipment-based methods for regional roads. Subsequently the donor assistance was extended to other districts of Morogoro region from 1990 to date, through the MRSP. Under this programme several contractors have been trained in road maintenance operations, some in labour-based and some in equipment-based technologies. These contractors have been involved in the execution of works, and as a result the road network has improved considerably. Ireland Aid were also involved in rehabilitation and maintenance of roads using labour-based methods in Kilosa district of Morogoro region as part of a multi-sectoral district programme. (e) Lindi and Mtwara Regions With the support of the Government of Finland, the government carried out a Rural Roads Rehabilitation and Maintenance project in Lindi and Mtwara from 1990 to 2002. The first phase of the project from 1990 to 1994 was part of a multi-sectoral Rural Integrated Project Support Programme (RIPS), and focused on maintenance rather than rehabilitation. It had a mix of EB and LB technologies. The second phase of the project (1998-2002) which was more focused on rehabilitation of the rural road network throughout the two regions also addressed the constraints of rural travel and transport at the village level. This phase paid greater attention on the use of appropriate technology for road construction, rehabilitation and maintenance in order to reap greater benefits to the community. Training of local contractors in LBT was carried out.


14

(f) Iringa Region The labour-based operation in Iringa region started with the launching of the pilot phase for Market Integrated Rural Transport Project (MIRTP) in 1986. This project was initially intended to identify and address local transport problems in Makete District in an integrated and sustainable manner. To this end road rehabilitation and maintenance using labour-based approach was seen to be a viable option. Subsequently efforts were made to develop small contractors in both equipment and labour-based methods in other districts of Iringa, with financial support of USAID, EU and DANIDA. (g) Kagera Region The technical assistance to Kagera regional administration by UNDP has assisted in creating the ability to organize labour-based operations in road works mainly through training of NGO’s staff. In addition the Netherlands government, through multi-sectoral support to all five districts in Kagera Region, assisted in the improvement of district roads. (h) Coast Region Labour-based road works have been carried out to a limited degree in Rufiji district of Coast region, under the financial support of DANIDA. Private contractors have been developed and have participated in the spot improvement of the district and rural road network. (i) Mwanza Region In 1997 the United Nations Development Programme (UNDP) and the United Nations Capital Development Fund (UNCDF) in collaboration with the government of Tanzania embarked on a District and Feeder Roads improvement programme in Mwanza Region. The overall objective of the programme was to promote economic development and alleviate poverty, by improving rural communities access to economic and social facilities. The programme is now in its sixth year of implementation and so far has recorded the following major outputs: • 253km of selected high priority roads have been rehabilitated using labour-based

methods. • Local contractors and consultants have been trained in labour-based road construction

and have participated in the execution of the projects. • Nearly 500,000 worker-days of employment have been generated, offering short-term

employment to villagers, and hence contributing to poverty alleviation.


15

4.3.2 Select LBT and EBT Projects: A Comparison As mentioned above, LBT has been tried in different parts of the country for more than two decades. Unfortunately most of these initiatives have been project-oriented following the logic of pilot approach. Consequently, once the project was completed there were no deliberate attempts to continue with the technology. For this reason, it has been difficult to get details of most of the projects carried out by LBT, since the responsible project staff are no longer available after the projects wound up. This is true for the projects supported by NORAD in Mbeya and Tanga, the FINNIDA projects in Lindi and Mtwara, and the NORAD/ILO project in Rukwa, to mention only a few. The projects presented here are therefore the more recent projects. These include those supported by DANIDA, SDC and UNCDF in Rufiji/Iringa, Morogoro and Mwanza respectively. Included at the end of this report (Appendix VI) are photographs showing that properly executed roadworks for both EBT and EBT are of comparable appearance and standards. The last of the photos in the series pertains to a satisfactorily LBT rehabilitated street in Magu Town; confirming applicability of the labour-based technology to urban roads. (a) DANIDA Supported Projects DANIDA has supported roads rehabilitation and maintenance programmes in Rufiji and Iringa districts for several years. These programmes were designed and supervised by a Consultant, COWI (T) Ltd. Discussions with the Consultant have revealed that the programme in Rufiji started in 1998, using first EBT, but later LBT was introduced. The interventions carried out did not involve full rehabilitation, but were mainly spot improvements. Thus the cost per kilometer for the improved roads ranged from Tshs. 3 million to Tshs. 7 million only, whereas full rehabilitation would have cost between Tshs. 12 million and Tshs. 20 million depending on the terrain and availability of construction materials. A summary of the major road sections carried out under the programme is given in Tables 4.1(a) to 4.1(e) below: Table 4.1(a): Road works carried out from Feb. 1998/Feb. 1999 in Rufiji

Name of Road Length (Km)

Whether LB or EB

Contractor or *Force Account

Total Cost (M Tshs)

Cost per Km (M Tshs)

Mkongo-Ikwiriri 28 EB Contractor 40.708 1.454 Kibiti-Ruaruke 28.5 EB Contractor 44.072 1.546 Ruaruke-Mtunda 19 EB Contractor 30.787 1.620 Bungu-Rungungu 21 EB Contractor 43.576 2.075

Table 4.1(b): Road works carried out from Feb. 1999/Feb. 2000 in Rufiji


Whether LB or EB


Total Cost (M Tshs)


Mkongo-Kipo (1) 18 EB Contractor 49.099 2.728 Mkongo-kipo (2) 20 LB Contractor 30.000 1.500


16

Table 4.1(c): Road works carried out from Feb. 2000/Feb. 2001 in Rufiji


Whether LB or EB


Total Cost (M Tshs)


Kipo-Mloka 31 EB Contractor 55.046 1.776 Jaribumpakani -Msindaji 24.2 LB Contractors 58.875 2.433 Muhoro-Ruma 12 EB Contractor 30.445 2537 Table 4.1(d): Road works carried out from 2001/Feb. 2002 in Rufiji


Whether LB or EB


Total Cost (M Tshs)

Cost per Km (Mash)

Bungu-Nyambuda 9 LB Contractor 4.832 0.537 Nyamwage-Nambunju 7 LB Contractor 9.751 1.393 Muhoro-Ruma 7 EB Contractor 72.646 10378 Muhoro-Ndundutawa 8 EB Contractor 55.206 6.900 Table 4.1(e): Road works carried out in 2002/2003 in Iringa District


Whether LB or EB


Total Cost (M Tshs)


Kalenga-Makongati 23 EB Contractor 140.000 6.087 Makongati-Wasa 34 LB Contractors 230.000 6.765 As mentioned earlier, these road works were limited to spot improvement and the intensity of rehabilitation and the terrain differ from one road to another such that cost per km varies widely and id not determinate between the two methods of road works. Therefore, it is difficult to distinguish between labour-based and equipment-based on the basis of the scanty data available. Consequently no further analysis will be made on these projects, save to note that the programme has been successful in using labour based methods of road rehabilitation, employment in the communities has been generated and training several labour-based Contractors in road construction and maintenance has occurred thus making significant contribution to local capacity building for labour based methods of road rehabilitation. (b) SDC Supported Projects SDC involvement in road works in Morogoro region is extensive, involving both labour-based and equipment-based contractors. The programmes have been executed under the supervision of a Consulting firm, Messrs ITECO Ltd. Since year 2000 a number of roads have been rehabilitated under the Districts Roads Support Programme (DRSP), a successor of the MRSP, which is operating in all four districts of Morogoro as well as in Kongwa and Bagamoyo districts in Dodoma and Coast regions respectively. These are shown in Table 4.2 hereunder:


17

Table 4.2: Road works carried out under the DRSP

Name of Road District Length (Km)

Whether LB or EB


Total Cost (M Tshs.)

Cost per Km (M Tshs.)

Ngilori-Iyogwe** Kilosa 42 LB Contractor 200.0 4.76 Chalinze-Talawanda** Bagamoyo 22 LB Contractor 144.0 6.55 Mapinga-Changwahela** Bagamoyo 8 LB Contractor 20.0 2.50

Sonjo-Katurukira Kilombero 8 LB Contractor 78.0 9.75 Kibaoni-Machipi Kilombero 3 LB Contractor 32.5 10.80 Machipi-Michenga Kilombero 7 LB Contractor 70.0 10.00 Machipi-Lumemo Kilombero 2 LB Contractor 20.1 10.05 Msalabani-Tawa# Morogoro 11 LB Contractors 180.0 16.36 Mwaya Luhombero# Ulanga 8 LB Contractors 127.7 15.96 Kongwa-Kibaigwa** Kongwa 35 EB Contractor 58.0 1.66 Gairo-Nongwe** Kilosa 10 EB Contractor 75.0 7.50 Idete-Miwangani Kilombero 8 EB Contractor 150.0 18.75 Mlali-Mgeta Morogoro 16 EB Contractor 350.0 21.89 Mwaya-Luhande Ulanga 4 EB Contractor 84.0 21.00 • *Force Account refers to execution of works using departmental units. This is also

referred to as direct labour units. • ** These works involved only Spot Improvement. • # Projects were for training LB Contractors

Based on the above table (involving 111 km of nine LBT roads and 73 km of five EBT roads) it is found that total cost for LBT road works averaged TShs 6.7 million per km compared to TShs. 11.2 million per km for EBT road works. Even here there are wide variations largely reflecting the intensiveness of the rehabilitation and the terrain involved. Further analysis of some of these roads will be made in subsequent sections of this report. (c) UNCDF Supported Projects Since 1998 the UNDP/UNCDF have collaborated with the government of Tanzania in what is termed as Support to Decentralization Programme in Mwanza Region (SDP), as well as District and Feeder Roads Rehabilitation Project (DFRP). While the former has been addressing the issue of good governance, the latter has targeted improvement of the road network. To date some 253Km of roads has been rehabilitated. Out of these 93Km were done as trial contracts, being part of the capacity building exercise to train local contractors and consultants in LBT. The remaining 160Km were fully-fledged contracts done by the LBT Contractors and supervised by Consultants. A summary of these roads is given in Table 4.3 below:


18

Table 4.3: Road works carried out under DFRP in Mwanza

Name of Road District Length (Km)

Whether LB or EB Contractor’s Name

Total Cost

(M Tshs.)


Kamena-Nyamalimbe Geita 5.0 LB Madata I.L. 50.41 10.08 Kasamwa-Bulela Geita 7.0 LB Tropical I.C.L. 45.15 6.45 Buhalahala-Nyakato Geita 8.0 LB Ng’wanza C.C.L. 64.35 8.04 Luchili-Nyanzenda Sengerema 6.2 LB Kashere E.L. 45.70 7.37 Nyamahona-Chifunfu Sengerema 13.4 LB Cyril/New Century 117.71 8.78 Mwamanyili-Badugu Magu 12.0 LB Gagu/Kisesa 140.71 11.73 Yitwimile-Ijitu-hale Magu 7.1 LB V.A. Enterprises 68.37 7.86 Kasota-Bugalama Geita 12.4 LB Madata Investment L. 105.89 8.54 Sengerema-Ngoma Sengerema 22.0 LB Cyril I.C.L. 186.94 8.14 Kisesa-Kayenze Magu 20.0 LB V.A. Enterprises 218.27 10.75 Kigala-Maregea Ukerewe 16.9 LB New Century C.C.L. 144.81 8.57 Bukindo-Buguza Ukerewe 13.5 LB Gagu Investment L. 123.22 9.80 Ngudu-Sumve Kwimba 17.5 LB Kisesa B.C.C.L. 161.14 8.80 Ilula-Manae Kwimba 11.9 LB Ng’wanza C.C.L. 121.09 11.21 Mbalika-Ilujamate Missungwi 16.0 LB Kashere E.L. 148.19 8.77 Ilujamate-Lubili B Missungwi 17.5 LB MP Investment C.L. 147.23 8.41

A further scrutiny of some of these roads will be made in subsequent sections of this report. 4.4 Cost Comparison of LBT-vs-EBT In the following (Tables 4.4a and Table 4.4b) construction cost details of select roads executed by either EBT or LBT are given. For cost comparison of the 2 construction technology approaches, three road pairs have been selected and their unit construction costs (per km) computed. These are summarized in Table 4.4(c).

Table 4.4(a): Details for Selected Road works carried out by LBT and EBT Sr. No.

Name of Road

Length (km)

Width (m)

Type of Surface Financier

Whether LB

or EB Level of

Intervention Contractor

or Force Account?

Consultant or In - House?

List of Equipment and/or Tools

Labour Force

Average Daily Wages

1 Chalinze-Talawanda 22 4.5 Gravel SDC LB Spot Contractor In-house Tippers, P/Roller,

Bowser, handtools 500 1,200/=

2 Ngilori-Iyogwe

4.2 5.4 Gravel SDC LB Spot Contractor Consultant Tippers, P/Roller,


3 Sonjo-

Katurukira

8 4.5 Gravel SDC LB Rehab. Contractor In-house Tippers, P/Roller, Bowser, handtools 500 1,200/=

4 Kibaoni-Machipi-Michenga

10 4.5 Gravel SDC LB Spot Contractor In-house Tippers, P/Roller,


5 Machipi-Lumemo

2 4.5 Gravel SDC LB Spot Contractor In-house Tippers, P/Roller,


6 Msalabani-

Tawa

11 4.5 Gravel SDC LB Rehab. Contractors In-house Tippers, P/Roller W/Bowser, handtools 350 1,200/= to

2,100/=

7 Mwaya-

Luhombero

8 4.5 Gravel SDC LB Rehab. Contractors Consultant Tippers, P/Roller, Bowser, handtools 550 1,500/=

8 Kisesa-Kayenze 20.0 5.5 Gravel UNCDF LB Rehab. Contractor Consultant Tipper, P/Roller,

W/Bowser, handtools 56,818

mandays 1,200/=

9 Yitwimila-Ihale-Ijitu 7.1 5.5 Gravel UNCDF LB Rehab. Contractor Consultant - Ditto - 18,616

mandays 1,200/=

10 Luchili-

Nyanzenda S3

6.2 5.5 Gravel UNCDF LB Rehab. Contractor Consultant - Ditto - 10,835 mandays 1,200/=

11 Kijuka-Nyamahona 11.0 5.5 Gravel UNCDF LB Rehab. Contractor Consultant - Ditto - 19,052

mandays 1,200/=

12 Kasota-Bugalama 12.4 5.5 Gravel UNCDF LB Rehab. Contractor Consultant - Ditto - 28,078

mandays 1,200/=


1

Sr. No.

Name of Road

Length (km)

Width (m)

Type of Surface Financier

Whether LB

or EB Level of

Intervention Contractor

or Force Account?

Consultant or In - House?

List of Equipment and/or Tools

Labour Force

Average Daily Wages

13 Nyamahona-Chifunfu S3 6.4 5.5 Gravel UNCDF LB Rehab. Contractor Consultant - Ditto - 14,686

mandays 1,200/=

14

Nyamahona-Chifunfu S4

7.0 5.5 Gravel UNCDF LB Rehab. Contractor Consultant - Ditto - 11,507

mandays 1,200/=

15 Mgeta-Mlali 16 4.5 Gravel SDC EB Rehab. Contractor In-house

D6, Grader, Loader Roller, Tipper,

W/Bowser, handtools 270 1,200/=

16 Chamanyani-Changarawe

5 5.9 Gravel Regional

Engineer EB Rehab. Contractor In-houseD6, Grader, Loader

Roller, Tipper, W/Bowser, handtools

50 1,000/=

17 Sagamaganga

–Ifakara

6 5.9 Gravel Regional Engineer EB Rehab. Contractor Consultant

D6, Grader, Loader Roller, Tipper,


18 Madamu-

Kinole

12 4.5 Gravel France EB Rehab. Contractor ConsultantB/Dozer, Grader Loader, Tippers


19 Geita-Bukoli

/Igombe-Kayenze

54.7 5.2 Gravel IDA EB Rehab.* Contractor ConsultantDozer, Graders

W/Loader, Rollers W/Bowser, Tippers, Plate Compactor etc.

60 2,500/=

20 Busisi-Nyang’hwale 18.4 6.0 Gravel Road

Fund EB Rehab. Contractor Consultant - Ditto - 40 2,000/=

21 Sengerema-Nyehunge 10.6 7.0 Gravel Road

Fund EB Rehab. Contractor Consultant - Ditto - 30 2,000/=

22 Nzera-Nkome 10.0 6.0 Gravel Road

Fund EB Rehab. Contractor In-house - Ditto - 30 2,000/=

23 Nyanshimo-Ngasamo 16.0 7.0

Gravel Road Fund EB Spot Contractor In-house - Ditto - 25 2,000/=

24 Mahege-Nyamisati 15.1 7.0 Gravel Danida EB Rehab. Contractor Consultant

Dozers, Graders W/Loader, Rollers

W/Bowser, Tippers, Plate Compactor etc.

50 2,500/=

• Gravel Surface only 50 mm


2

Table 4.4(b): Cost Details of selected Road works carries out by LBT and EBT Cost of Project (M Tshs.)

Sr. No. Name of Road Length

(km) Start Date

Completion Date Labour Materials Equipment

hire

Overheads: Includes

Profit Supervision Compen

sation Capacity Building Total

Cost per Km (M Tshs..)

1 Chalinze-Talawanda 22 Mar.

2003 June 2003 54.00 25.00 29.00 36.00 8.00 - -

152.00

6.910

2 Ngilori-Iyogwe 4.2 Oct.

2002 Mar. 2003 13.80 5.50 16.44 5.36 3.00 - - 44.10 10.50

3 Sonjo-Katurukira 8 Oct.

2002 Mar. 2003 37.50 18.10 13.40 6.00 3.00 - -

78.00

9.75

4 Kibaoni-Machipi-Michenga

10 Oct. 2002 Mar. 2003 46.30 21.60 23.80 6.80 4.00 - - 102.50 10.25

5 Machipi-Lumemo 2 Oct.

2002 Mar. 2003 8.55 3.00 3.75 1.80 3.00 - - 20.10 10.05

6 Msalabani-Tawa 3 11 Feb.

2002 Nov. 2002 79.80 36.70 36.70 27.90 10.00 - 18.00 209.10 19.01

7 Mwaya-Luhombero 4 8 Sept.

2002 Mar. 2003 54.80 20.70 13.30 38.90 16.00 - 20.00 163.70 20.46

8 Kisesa- Kayenze 20.0 Jan.20

02 Aug.2003 65.00 42.00 78.50 32.74 30.00 NIL NIL 248.27 12.413

9 Yitwimila-Ihale-Ijitu 7.1 Nov.

2000 Nov. 2001 21.68 23.65 12.79 10.25 10.73 NIL NIL 79.10 11.141

10 Luchili-Nyanzenda S3 6.2 Nov.

2000 Dec. 2001 10.04 18.31 10.50 6.85 9.25 NIL NIL 54.95 8.863

11 Kijuka-Nyamahona 11.0 Oct.

2002 Apr. 2003 22.90 17.96 35.50 13.47 16.86 NIL NIL 106.69 9.700

3 These were pilot projects for training labour-based contractors.


3

Cost of Project (M Tshs.) Sr. No. Name of Road Length

(km) Start Date

Completion Date Labour Materials Equipment

hire

Overheads: Includes

Profit Supervision Compen

sation Capacity Building Total

Cost per Km (M Tshs..)

12 Kasota-Bugalama 12.4 Nov.

2001 Aug. 2002 31.26 22.10 36.65 15.88 18.60 NIL NIL 124.49 10.040

13 Nyamahona-ChifunfuS3 6.4 Nov.

2000 Aug. 2001 18.43 23.92 14.59 10.05 9.60 NIL NIL 76.59 11.967

14 Nyamahona-ChifunfuS.4

7.0 Nov.

2000 Oct. 2001 17.24 14.70 11.18 7.60 10.50 NIL NIL 61.22 8.746

15 Mgeta-Mlali 16 Feb. 2003 Nov. 2003 59.60 94.90 143.50 52.00 20.00 - - 370.00 23.12

16 Chamanyani-Changarawe 5 Mar.

1999 Sept. 1999 5.00 20.00 30.00 35.00 5.675 - - 95.675 19.13

17 Sagamaganga-Ifakara 6 May

2000 Oct. 2000 15.00 25.00 38.00 12.00 3.00 - - 93.00 15.50

18 Madamu-Kinole 12 Sept.

2003 May 2004 25.00 120.50 146.40 74.10 24.00 - - 390.00 30.5

19 Geita-Bukoli &

Igombe-Kayenze

54.7 April 2001 Oct. 2001 30.00 200.00 180.00 115.30 90.30 NIL NIL 615.60 11.254

20 Busisi-Nyang’hwale 18.4 Feb.

2002 April 2002 20.00 95.00 102.00 35.40 10.00 - 10.00 272.40 14.750

21 Sengerema-Nyehunge 10.6 Feb.

2002 May 2002 12.90 62.00 69.50 27.70 8.50 - - 180.60 17.038

22 Nzera-Nkome 10.0 July 2002 Oct. 2002 14.30 46.70 50.60 24.70 8.50 - - 144.80 14.480

23 Nyanshimo-Ngasamo 5 16.0 Oct.

2002 Dec. 2002 5.50 25.60 43.90 21.80 3.00 - - 99.80 6.238

24 Mahege-Nyamisati 15.1 Aug.

2003 Feb. 2004 25.55 146.00 172.50 53.95 27.00 NIL NIL 425.00 28.14


45 Grading and spot improvement only

The detailed information in tables 4.4(a) and 4.4(b) above has shown wide variations between roads within the category of LBT as well as within the category of EBT; suggesting that part of the difference can be attributed to the intensity of the rehabilitation and part can be attributed to the nature of the terrain. Average costs per km unadjusted for intensity of rehabilitation and terrain show that LBT road works are generally lower. However, in order to make a comparison between the two LBT and EBT methods standardization was made to even out differences due to intensity of rehabilitation and terrain. Comparison was made between roads which have similar intensity of rehabilitation and are in similar terrain. Costs of rehabilitating the three pairs of similar roads are compared as shown in Table 4.4(c) below. Table 4.4(c): LBT-EBT Unit Construction Cost Comparisons

Project Costs Breakdown (M Tshs.)

Roa

d Pa

ir

Nam

e of

Roa

ds

Tech

nolo

gy

Use

d

Leng

th

in k

m

Labo

ur

Mat

eria

ls

Equi

pmen

t C

harg

e

Ove

rhea

ds

Supe

rvis

ion

Cap

acity

B

uild

ing

Tota

l Cos

ts*

MTS

hs

Cos

t per

km

(M

TShs

)

LBT

Cos

t A

dvan

tage

Msalabani-Tawa LBT 11 79.8 36.7 36.7 27.9 10.0 18.0

154.4 14.0A Madamu-Kinole EBT 12 25 120.5 146.4 74.1 24.0 -

269.5 22.5

38%

Nyamahona-Chifunfu S.3 LBT 6.4 18.43 23.92 14.59 10.05 9.6 - 52.7 8.2B Sengerema-Nyehunge EBT 10.6 12.9 62 69.5 27.7 8.5 - 118.6 11.2

26%

Nyamahona-Chifunfu S.4 LBT 7 17.24 14.7 11.18 7.6 10.5 - 46.5 6.6C

Nzera-Nkome EBT 10 14.3 46.7 50.6 24.7 8.5 - 98.1 9.8

32%

Note *: Total costs shown are for Technology Specific items only

(i.e. they are exclusive of materials & capacity building)


5


6

The information in Table 4.4(c) above shows that the respective cost advantage in using LBT for the three pairs of roads is 38% for Msalabani-Tawa and Madamu-Kinole roads, 26% for the Nyamahona-Chifunfu and Sengerema-Nyehunge roads and 32% for the Nyamuhona Chifunfu and Nzera-Nkome roads. Further comparisons will be made in the subsequent sections of the report. 4.5 Benefits of LBT 4.5.1 Employment In 1997 the government of Tanzania in collaboration with ILO carried out an assessment of employment creation potential of labour-based road works. An estimate of the road network with sufficient population density for labour-based work was made. The successful use of labour-based methods requires that there is an adequate supply of local labour. Fortunately in Tanzania the rural population is more than 75%, and is well distributed throughout the country. Even where the population density is low villages tend to concentrate close to the road. This is an advantage for undertaking labour based road works. As shown in the sample of roads rehabilitated the degree of utilization of labour is higher for LBT roads. This point will be taken up further in the subsequent sections of the report. 4.5.2 Socio-economic Benefits Socio-Economic benefits of labour-based methods could include: • Generation of temporary employment during construction and rehabilitation and long-term employment through subsequent maintenance of

the road. • Savings in foreign exchange Becaue of the lower import content of equipment for LBT. • Cash injection into the rural community leading to poverty reduction.


7

• With more cash on hand people have been able to improve their houses and other conditions of their lives, thus raising their living standards.

• Environmentally friendly due to less fuel consumption, less exhaust emissions, and less

dust. • LBT offers more flexibility in operations and less downtime due to equipment breakdown

Especially in remote rural areas • Less risks for small contractors as they can be occupied more extensively and can manage

simpler equipment more easily. • Capacity building and retention of the technology in the communities, for subsequent

maintenance. • Development of the local industry for the manufacture of tools of the right quality, and

even manufacture or assembly of intermediate equipment. • Improvement of the access roads has triggered other economic activities in the concerned

villages and opened up outlets to external markets for their produce to the extent that LBT enables rehabilitation and maintenance of roads which would otherwise not be worked on for lack of adequate resources To mobilize EBT road works.

4.5.3 Self-reliance for Sustainability One of the policies of the Government of Tanzania following independence was the creation of a self-reliant nation. However, after more than forty years since that policy was proclaimed the nation is far from being self-reliant, particularly in the transport and construction sub-sectors where there is heavy dependence on foreign technology. LBT has proved to be sustainable both physically and financially. Physical sustainability is accounted for by the high sense of ownership demonstrated by villagers especially those who participated and enjoyed the fruits of their labour during maintenance or rehabilitation of respective roads. Due to technology retention in villages where LBT has been practiced, regular road maintenance by villagers has been witnessed in various LBT village roads. It has been demonstrated that LBT can be financially sustainable due to its insistence in the use of local resources. The use of locally available resources result in achieving more kilometers of road length in a given area, and hence with limited financial resources, access impact will tend to accrue more on LBT than EBT. According to the findings of this study, labour-based technology can make considerable contribution to promoting community level participation and ownership in road works thereby enhancing self-reliance and sustainability.


8

4.5.4 Transport and Traffic Aspects The transport sector in Tanzania is characterized by high cost, low quality services due to various reasons, the major being lack of infrastructure maintenance and rehabilitation mainly in the rural areas where over 75% of the population live. In 1997, the government adopted the National Poverty Eradication Strategy (NPES) that provided overall guidance and a framework for coordination and supervision of the implementation of policies and strategies for poverty reduction, with focus on the rural population. However, the absence of a conducive environment for private sector investment and lack of clear policy towards involving communities in the construction, rehabilitation and maintenance of roads the level of this activity has remained low in rural Tanzania. In 2003 the government adopted the National Transport Policy (NTP) which provide guidance towards better transport infrastructure and services which will in turn lead to the development of other sectors including education, agriculture, health care, access to water, and general economic development. In view of the above, NTP recognises that road is the dominant mode of transport in most parts of the rural areas. Given the fact that poverty is wide spread in rural areas, compared to urban centres, the NTP aims at having reliable transport through infrastructure development and services that stimulates economic activities in the rural areas and facilitate transport to the major transport networks and market centres. The NTP is in all respects, inline with the Poverty Reduction Strategy to the extent it supports interventions that are mainly focused on mobilizing the communities to address their own impinging problems in the following transport related areas:

• Construction of foot bridges • Construction/maintain foot paths. • Produce/use intermediate means of transport (IMT). • Construct/Rehabilitate village roads • Rehabilitate/maintain District/Feeder Roads

Studies conducted in various countries including Tanzania, confirm that, by undertaking the above access interventions, the respective communities will enjoy the following socio-economic benefits. • Impact of Footbridges:

- School children will reach their schools on time and safely (easy of river crossing).

- Farmers will reach their farms even during rainy season. - Travel time saved for all travelers using the foot bridge. - Villagers will reach their health facilities at all times.

• Impact of the footpath:


9

- Ability to use IMTs. - Shorter distances to basic services. - Safety to school children, elderly, etc.

• Impact of IMT:

- Ability to carry greater loads. - Reduce burden on women. - Increase men’s participation in “women jobs” - Income generation through hiring of IMTs.

• Impact of Village Roads:

- Access to markets/trading - Agricultural inputs/produce transported to the appropriate location. - Access to District/Regional roads - Access to social services - Availability of essential goods - Interaction with outsiders - Access to mining/tourism

• Impact on District Feeder Roads:

- Access to Regional Roads/Regional Centres - Access to markets (district/regional/municipal - Access to export markets - Availability of essential goods/imports/services

• Traffic Intensity In most cases, where district feeder roads are not properly maintained or rehabilitated, the traffic intensity in the area is usually very low. There is a tendency of people shifting their vehicles to other routes where roads are slightly better, and others failing to replace their vehicles once they are worn out. Before the Msalabani – Tawa road in Morogoro Region was rehabilitated using LBT in year 2002, there were only 2 vehicles stationed in Tawa Ward – one owned by a Health Centre and the other by a Roman Catholic Church. During this study, one year after the rehabilitation, the number of vehicles operating in the ward had increased three times. Two cars, three buses and 2 three tonner pickups are now stationed at Tawa, providing services to Morogoro town. A rapid survey conducted in some of the Mwanza Roads (LBT project) indicate similar results. In Magu District, where the Lugeye – Kigangama road (4.7 km.) was improved using


10

LBT, residents of Kigangama Ward have confirmed a rapid increase in the traffic intensity, mainly pick-ups involved in the fish business. Similar impact was reported in Sengerema district, where the Nyamahona – Chifunfu road (19.2 km.) was improved using LBT under the UNCDF project. All roads under this project leading to fisheries areas had similar impact. Peoples income from sale of fish has almost doubled, compared to the before situation, and many have been able to build new houses and some have bought new bicycles. The contribution towards poverty eradication was noted as being significant for all residents along the improved roads. Traffic intensity has also been observed to increase in non-motorized transport. There is an intensive use of bicycles for fish trading and bicycle taxis (for hire). This has resulted in a decrease of head-loading, especially for women who used to walk long distances carrying their cargo on their heads.

• Traffic Flow: Flow of traffic in areas where roads are not maintained is usually very low, up to one vehicle per day. Improved district feeder roads can carry, in busy areas, up to 100 vehicles per day. Before the Msalabani – Tawa road in Morogoro (R) was rehabilitated, it used to witness a thin traffic flow of up to one vehicle or two per week during the non-peak season. It was almost impassable during the rainy season. The flow used to increase up to 3 vehicles a week during the harvest season. After rehabilitation, the traffic flow has increased tremendously, mainly due to the opening-up of the Dar es Salaam market to the agricultural produce from Tawa Ward. On the average, 3 pick-ups (3 tons) are operating daily along the road carrying bananas, fruits, black pepper, pineapples and other produce to either Morogoro or Dar es Salaam. Most Traders interviewed indicated that they prefer Dar es Salaam since prices are good. It takes nearly 4 hours to reach Dar es Salaam. Traders operating shops in the area, also purchase their goods from Dar es Salaam where, they say, prices are fair and availability is good, transport costs not with-standing.

There are 3 micro buses serving the road permanently – from Morogoro. They make up to 2 round trips per day. The use of NMTs is highly limited due to the terrain of the area – mountainous. Only about 20 bicycles are owned in the ward, with practically no push carts or wheel barrows. The Mwanza roads (LBT project) have also witnessed an increase in the traffic flow. For those leading to the fisheries centres, i.e. Lugeye – Kigangama (4.7)km., Yitwila – Ijitu – Ihale (8.7km.), Kisesa – Kayenze (20 km.), Nyamahona – Chifunfu (19.2km.), have experienced an increase in the traffic flow due to vehicles going to fetch fish from the fishing centres. Passenger vehicles are also reported to have increased their frequencies in the area. Non-motorized transport, i.e. bicycles and bicycle taxis are numerous.


11

For the roads leading to the agricultural areas, i.e. Mwamanjili – Badugu (20 km), Luchii – Nyanzenda (10.3), Sengerema – Ngoma (22 km.), Kasamwa – Bulela (14.2 km.) etc., have also reported positive impact on traffic flow. Evacuation of farm produce from these areas to markets is reported to be faster now than before. Traders are now competing in doing business with villagers due to easy accessibility.

The increase in the flow of traffic to the areas where roads were improved has stimulated other economic sectors like fishing, agriculture, trading, mining, tourism, housing etc. As a result, it has substantially contributed towards poverty reduction. The impact is vivid in areas like export of fish products, exports of cotton and cotton products and the increased availability of fish in the internal market. Abundance of fruits (from Morogoro) in Dar es Salaam, is an outcome of improved access to Morogoro rural, in most areas using LBT. 4.5.5 Flexibility Labour based technology, as opposed to other technologies is flexible and can be applied in different terrains and different communities. Due to its flexibility, LBT is mainly the dominant technology in footpath maintenance and footbridges construction in rural areas.

Scope for labour based solutions may also extend to some structural works. The Ghanaian experience suggest that wooden culverts with higher labour inputs can be much more cost effective than the use of concrete and have comparable economic lives. 4.5.6 Environmental Advantages:

• Less damage to the natural terrain especially in road construction works. • Less number of trees up-routed • Less amount of dust and smoke generated during road works • Less chances of accidents due to equipment • Less noise made compared to machinery intensive works. • Subsequent road maintenance easier with LBT


12

5.0 FINANCIAL COST COMPARISONS All projects require financial analysis in order to provide an adequate financing plan for the proposed investment, determine the profitability of the project beneficiaries and to assist in planning the operation and control of the project. The financial analysis of projects makes use of two important concepts: liquidity and profitability. The liquidity of a project is concerned with the availability of funds for continued implementation and operation of the project while profitability is concerned with the question of whether the project is worthwhile from the point of view of the investor. The liquidity status of a project is determined primarily from the cash flow while the concept of profitability is determined primarily from the profit and loss account. In the context of this project, however, the comparisons are between two alternative methods of undertaking road works (LBT and EBT). The outputs are basically the same. The study has investigated the impact of changes in the financial level and distribution of capital and labour in the rehabilitation of roads in the economy. The simulations have provided insights into the way that the costs and benefits of the LBT and EBT percolate through the economy. 5.1 EBT and LBT Cost Comparisons Based on the data that was obtained from the field and reported in Table 4.4(b) average costs for LBT and EBT road works were computed. It was found that the average cost per km for 135.3 km of LBT road rehabilitation was TShs 11.2 million compared with TShs 16.4 million per km as an average of 163.8 km of roads rehabilitated using EBT. The share of labour cost in total cost was 31.6% for LBT and 7.9% for EBT. When cost of supervision is added the share increases to 41.7% for LBT compared to 15.4% for EBT. The share of cost of equipment charge was 22% for LBT and 35.3% for EBT. As pointed out earlier these are averages which could be marred by variations in terrain and intensity of rehabilitation needed. As indicated in Table 4.4(c) under Section 4 herein, the average costs per km for similar road works in comparable terrain show that LBT road works are generally lower by between 26% and 38% depending on the specific conditions of roads being compared. Financial costs of rehabilitation of the feeder roads by adopting either LBT or EBT were computed on the assumption of a budget outlay of US$ 10 Million at the exchange rate of TShs 1000 per 1 US$. The market prices of various equipments have been collected from the local market CIF invoices. Further results were obtained and these are reported in the subsequent sections.


13

5.2 General Observation of the Economic Costs Analysis In the particular case of comparing LBT and EBT road works the output is essentially the same for the two projects. Therefore the analysis of financial costs and profitability should be interpreted with greater care. The main difference between the two projects is in the process or inputs side rather than the benefits side. In this case therefore the main differences are in the relative intensity in the use of labour and equipment and in the way the two technologies involve the local authorities and communities in the ownership and management of the process of road construction and rehabilitation. The main benefits of LBT over EBT are in terms of employment of labour in local communities, participation of communities in designing and implementing road works, a situation which enhances ownership.


14

6.0 ECONOMIC COST COMPARISON The economic analysis is done from the viewpoint of the entire society. It answers the question: Is the project profitable to the society or to a target population as a whole? What is its impact (in terms of job creation and linkages with the other sectors) on the whole economy? In economic analysis costs and benefits are valued at efficiency (or accounting) prices (shadow prices). Economic analysis is cost benefit analysis from the point of view of the economy as a whole. It involves expanding the boundaries of the project to capture the impact of the project on the entire economy. Economic analysis has two main objectives:

(i) To provide information for making decisions on the acceptability of projects from the national point of view.

(ii) To provide information of the value of project design and planning,

macroeconomic planning and economic research. In economic analysis the following steps are adopted in most cases:

(i) Identifying and eliminating transfer payments (e.g. from one group to another)

(ii) Extending the boundary of the project to include linkage effects and externalities

(iii) Identifying and valuing the effect of the project on non-traded costs and

benefits

(iv) Identifying the effect of the project on the use or production of traded goods and therefore showing the effect of the project on the availability of foreign exchange or on balance of payments.

(v) Identifying the effect of the project on employment of labour taking into

account the opportunity cost of various categories of labour.

(vi) Identifying the effect of the project on investment, savings and distribution of income and consumption among different income groups. This would show the contribution of the project toward poverty reduction.

Where a project involves foreign aid which would only be available if one method is used rather than the other then policy action should address the cost of tying such aid to particular methods. The option of untying aid from specific technology choices should be adopted so

6 Little, I.M.D. and Mirrless, J.A. Project Appraisal and Planning for Developing Countries. London:

Heinemann, 1974.


15

that such choices can be determined primarily by their benefits to the economy rather than by preference of particular donors. Economic values of both inputs and outputs may differ from their financial values because of market distortion created by either the government (e.g. tariffs, export taxes and subsidies, quantitative restrictions, excise and sales taxes, value added taxes) or the private sector (e.g. monopoly prices). Shadow prices are used to compensate for price distortions. The shadow prices are supposed to reflect more closely the opportunity costs and benefits of the project, instead of market prices. Where serious trade distortion are present, border prices need to be converted to into domestic currency equivalents using a shadow exchange rate, not the official or market exchange rate. Where there are labour market distortions (e.g. minimum wage legislation, legal impediments to labour mobility) it may be necessary to use shadow wage rates to reflect the opportunity cost of labour used in a project. The market wage rate would need to be adjusted to reflect more closely the opportunity cost of labour. To estimate the opportunity cost of labour requires information on the earnings from alternative economic activities in the rural areas. According to the household surveys most households and individuals are engaged in multiple activities in the rural areas. An appropriate opportunity cost would therefore require a comprehensive survey of factors such as seasonal and regional variations, variations according to gender and opportunity costs in terms multiple activities some of which may be complementary.

6.1 The Economic Cost of LBT The rehabilitation of roads is likely to engage labour from the agricultural and other sectors. It would also exclude most of the EBT from rehabilitation of feeder roads. It is important that one should determine whether such shift in labour is a constraint on agricultural and other sectors’ output and would eventually result in a fall in agricultural output, (local) government tax revenue and government expenditures. Such changes in the distribution of income are important element in the shadow cost of labour. In other words the opportunity cost that informs and influences the choice of investing in LBT is the forgone value government places on agriculture and related activities. Technological externalities occur when the welfare of one group is affected directly by the activities of a project. In the case of LBT, the skills of workers and rural communities are more likely to be enhanced or lead to the adoption of improved technology in road works. The human capital approach looks at the effect of an activity on human productivity normally assuming that labour costs reflect productivity. The benefits of training and education are likely to be greater for LBT.


16

6.2 The Economic Cost of EBT The economic cost of the EBT was computed on the basis of border or import CIF prices. The market prices were not taken as accounting prices. The EBT approach utilizes imported equipments and machineries or tools. The import duties, which are normally levied on EBT, in order to protect the local industry, render their market prices higher than border prices.


17

7.0 MACROECONOMIC IMPACTS OF LBT AND EBT: SIMULATION

The LBT and EBT impacts analysis is done using the simulation investment or income model capturing key aspects of rehabilitation of feeder roads in Tanzania. The rehabilitation of feeder roads is regarded as the necessary infrastructure to generate employment and combating poverty. The key assumption is that LBT approach is more feasible and beneficial to the poor and the economy as a whole than EBT approach. The technology of Tanzania economy is fully described by two constant coefficients, one with the labour requirement (0.67) and the other is the capital requirement per unit of output (0.33). Technological change is held constant for purposes of this study in order to permit analysis of the current situation. In addition, it is assumed that Tanzania consumes a fixed fraction of whatever income/ output the labour force earns/ produces and the remaining fraction becomes gross investment. These and other assumptions below guide the analysis in this section. 7.1 Explanation of the Model The model is of an input/output type and it captures key macro economic variables in Tanzania economy such as GDP, household income, private investment, and public deficit and trade balance, to mention the few. It uses both secondary and primary data to assess the direct and indirect effects of investment in rehabilitation of feeder roads in Tanzania comparing the LBT and EBT approaches. Table 7.1 gives some coefficients used in the model. Table 7.1: Summary of Selected Coefficients used in the Simulation Model Symbol Variables Value 1 M Marginal propensity to consume 0.82 2 Margimpo Marginal Propensity to import 0.38 3 I Marginal Propensity to save/ invest 0.18 4 Tc Effective Tax rate on consumption 6% 5 Tm Real average tax rate on imports 12% 6 Ty Effective income tax rate 6% 7 Alp Average Labour productivity (TShs/manday) 1,430 Source: Own Computation using Macro-economic Data files, National Bureau of Statistics, various years. 7.2 Explanation of the Model Parameters 7.2.1 Estimation of Marginal Propensity to Consume Coefficient (MPCC) The MPC represents change in consumer spending (C) in response to change in the level of income. That is, the MPC causes a spending increase to multiply. The analysis uses consumption function to indicate the basic flow of consumer spending at different levels of national income by investing TShs 10 Billion in the rehabilitation of feeder roads in the country. This is a function of GDP, plus other variables whose influence is captured by a


18

constant. The Specification of the model is made as follows: C = a + m. GDP, where C = consumption, a = Constant, m = MPCC and GDP = proxy for household income.

The above equation was estimated using annual data on consumption and real GDP published by the NBS for the fiscal years 1987 through 1999. A linear regression statistical method was applied. Based on the above regression results, the MPCC for Tanzania is estimated at 0.82. 7.2.2 Estimation of Marginal Propensity to Import Coefficient (MPIC) The estimation of the MPIC is made using the same method as one used in the previous estimation. A net export equation from which the coefficient is derived is specified below. TB = b- n. GDP where, b = constant, n = MPIC, TB = Trade balance (net exports) and GDP = Proxy for national income. The above equation was estimated using annual data on exports, imports, and GDP for the period 1987-1999. Trade data for the same period was obtained from NBS. Based on the above regression results, the MPIC for Tanzania is estimated at 0.38. 7.2.2 The Principal Equation of the Model The following equations are regarded as principal in the sense that they are very instrumental in the computation of the GDP multipliers and other parameters:

Income Tax =Public Investment times income tax rate; Consumption= (1-MPC) times Public Investment divided by saving rate; Household Income= This is computed as a summation of earnings related to

consumption and investment; Government revenues= total income tax, import duty and consumption tax revenues; Public investment = Government total outlay earmarked to the rehabilitation of feeder

roads in the country; Budget deficit = the total government revenues less public investment; Trade deficit= total imports whose bill is not cleared by any export earnings; Employment creation = the number of jobs which could be created through multiple

effects of injecting resources through public investment in the economy. The key issues to address include the total number of annual man-days, the wage rate per man-day;

Multiplier is the multiple effect of the investment outlay on the economy as a whole. The GDP is divided by public investment undertaken.

7.2.3 Relationship among Consumption, Saving and Investment The relationship among the consumption, savings and investment functions is such that as incomes increase in hands of labourers, their spending increases, savings increase and rates of investment increase. The consumption and savings (or investment) add to total national income. With MPCC at 0.82 (82%), then the marginal propensity to save (MPS) is 0.18 (18%). However, the macro-equilibrium level of national income requires that withdrawals


19

(savings) equal to injections (investments). That is, the saving rate must be just equal to that required ratio of investment to output and thus net saving and investment are a fixed fraction of net output or income at any instant of time. Tanzania, like other countries implements investment spending (re-injections to offset the savings withdrawals) to sustain its prosperity as reflected in terms of income and employment creation. Therefore, the higher the income, the higher the savings rate; and therefore the higher will be the investment rate required to sustain the high level of income. 7.2.4 Government Revenues and the Trade Balance

The trade balance is determined as a function of household savings, government revenues and investments. That is, both the government revenues and trade balance are endogenous variables determined in the model. 7.2.5 Estimation of the Employment Creation The employment creation is one among many variables, which could explain the effects of investment in rehabilitation of feeder roads by employing LBT and EBT approaches. It is computed by dividing total output by labour productivity ratio and the number of working days per annum. In this case, the average labour productivity is assumed to be equal to the opportunity cost of labour employed in the road sector in Tanzania. 7.3 Model Results of a Public Investment of TShs 10 Billion This section analyses the quantitative simulation results of the public investment of TShs 10 Billion using LBT and EBT approaches in roads rehabilitation. Table 7.3: Macro-Economic Simulation of Public Investment of TShs 10 Billion in Feeder

Roads Rehabilitation and Maintenance (Financial Figures in Million)

LBT Effect EBT EffectTotal LBT and EBT

Effects GDPVA 41,152.89 20,194.09 61,346.98 Household Income 37,222.22 18,333.33 55,555.56 Consumption 30,522.22 15,033.33 45,555.56 Private Investment 0.00 0.00 0.00 Government Revenues 3,930.67 1,860.76 5,791.43 Income Tax 402.00 122.76 524.76 Import Duty 1,697.33 836.00 2,533.33 Consumption Tax 1,831.33 902.00 2,733.33 Public Investment 6,700.00 3,300.00 10,000.00 Budget Deficit (2,769.33) (1,439.24) (4,208.57) Trade Balance (15,638.10) (7,673.76) (23,311.85) Employment (non monetary) 119,909.35 58,840.60 178,749.95 GDP Multiplier (non-monetary) 6.14 6.12 6.13

Source: Study estimates using some variables of the macro simulation model


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Both the LBT and EBT have significant effects on the economic variables such as employment creation, GNP, government revenues, etc. The details are given below. 7.3.1 The Multiplier At any instant, aggregate output is predetermined by the existing stocks of private and public capital and the available supply of labour. The investment of TZS 10 billion in rehabilitation of feeder roads increases national spending and income through the multiplier effects. This analysis compares the income multiplier of the LBT and EBT. The LBT multiplier (6.14) is slightly higher than the EBT multiplier (6.11) by about 1%. This is because the GDP component as value added through LBT (TZS 41.2 Billion) has registered higher values than EBT (TZS 20.2 Billion). This indicates that the use of either LBT or EBT may not necessarily give significantly different end results. 7.3.2 Public Revenues and Budget Deficits

Normally, the government taxes away the resources necessary for undertaking public investment projects, and leaves for private investment a fraction of what is left (Marginal Propensity to Save or Invest, (MPS). However, the government does not have complete control over the allocation of output/ income among its possible uses including private consumption, private investment and public investment. Instead, is assumed to have only one instrument, the rate of income tax.

The government revenues collected through the LBT approaches (3.9Billion) are higher than through EBT (1.9 Billion). This implies that LBT accounts for about twice as much revenue collection compared to EBT. 7.3.3 Employment Creation The key assumption is that Tanzania has a supply of homogeneous labour, which is used, together with the stock of capital available from the past accumulation, as an input to the current investment. The estimation of employment creation is crucial to gauge the sustainability of high economic growth and reduction of poverty. Table 7.3 gives the estimates of employment creation by both the LBT and EBT approaches. It is evident that the LBT approach would create full time employment for 119,909.35 jobs while EBT could create 58,840.6 employment opportunities. The LBT’s employment creation is more than double employment attributed to EBT. That is, LBT: EBT employment creation ratio is estimated at 2.04 to 1. This figure is probably an underestimate considering that labour would be organized at the level of local communities and not adhere to strict rules of employment under private investment. In addition, as development programming continues to be decentralized, communities will build the capacity to mobilize and engage of labour in a manner that would minimize conflict or trade-off with agricultural activities in the respective areas.


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7.4 Sensitivity Analysis of the Simulation Results The report estimated the average labour productivity of TZS 1,430 per day (see Table 7.4 above) and the minimum wage of TZS 1,430 per day. The sensitivity analysis has been done with regard to changes in average labour productivity, which is assumed to be equal to the daily wage. The increase domain contains TZS, 1430, 2000, 3000, 5000 and 7,000 per manday. The sensitivity analysis shows that increases in the daily wage rate and average labour productivity have a downward effect on employment creation. For instance, the increase in wage from Tshs. 2000/= to 5000/= has resulted in the decrease in LBT’s jobs from 85,735.19 to 34,294.07 per year, the fall by 150%. Table 7.4: Sensitivity Tests of Varying Daily Wage Rates and Changes in Labour

Productivity on Employment Creation Average Labour Productivity, TZS 1430/day Daily Wage

Rate LBT EBT 1430 119,909.35 59,059.83 2000 85,735.19 42,227.78 3000 57,156.79 28,151.85 5000 34,294.07 16,891.11 7000 24,495.77 12,065.08

Source: Study estimates using the macro model

In general, employment in the rural areas is needed both to redress the underemployment and unemployment problem during the low seasons. 7.5 Implications for Poverty Reduction Poverty reduction is addressed through job creation in the respective communities. However, through their impacts on GDP, government revenue and employment it is clear that LBT is more consistent with pro-poor growth which is expected to have greater impact on poverty reduction and raising the standards of living of the rural communities and households.

7 The United Republic of Tanzania, National Population Census data, 2002.


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8.0 CASE STUDIES ON IMPACT OF LBT & EBT 8.1 Introduction This section is an analysis of case studies of rural communities that have benefited from labour-based and equipment based road projects. The case studies were conducted during fieldwork with the aim of assessing the immediate and expected long-term socio-economic achievements or impact, limitations, as well as the implications for poverty reduction among the communities. The two case studies were designed to analyse the comparative impact of labour- based and equipment based road works on rural communities with regard to poverty alleviation. It suggests that the understanding of advantages of labour-based technology versus equipment based has already filtered down to the local government and the communities. This is very important since the central thrust of local government reforms is improving service delivery. However it suggests that changing the ‘culture’ of Local Government in rural roads rehabilitation may demand more in terms of coming up with a deliberate policy at the local level and commitment in its implementation. 8.2 Description of Project Areas Morogoro (TAWA WARD) Tawa Ward has a total population of 10,009 inhabitants in six villages as follows:

Tawa 3,004 people Milawilila 1,130 people Logo 1,340 people Uponda 1,746 people Kifindike 1,485 people Kitungwa 1,304 people TOTAL 10,009 people

The main occupation of the people in the area is agriculture. Their farms range from ¼ to 1 acre within their residential areas and 2 to 4 acres outside the residential area mainly in the river valleys etc. They mainly grow fruits and vegetables such as bananas, mangoes, oranges, tomatoes, pineapples, as well as coconuts, black pepper and cloves. In the bigger farms, they cultivate yams, potatoes, maize, beans and cassava. They hardly raise animals. Only a few animals e.g. pigs and goats are found in the area. There is only one butcher for goat’s meat, and one kilogram is sold at Tshs. 1,300/=, and that of pig is sold at t.shs.1,400/=. There are a few traders operating retail shops, milling machines, and wholesalers who buy fruits and vegetables for transporting to Morogoro and Dar es Salaam markets. In 1998, a road maintenance group by the name of “Kitunze Kidumu” was set up by villagers along Msalabani - Tawa Road for the purposes of maintaining the road, which was not


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passable at all by any type of vehicle. Before the road was rehabilitated, only two vehicles existed in the Ward (Health center ambulance, and one Mission’s car); however, these vehicles could not pass through the road. Big lorries/trucks that are normally hired by traders to fetch farm produce from the villages were charged a road toll of Tshs. 1,000/= for using the road. The group imposed this toll, in order to raise funds to maintain the road. In Mwanza districts, wages earned to the community increased gradually from Tshs. 27,711,000 during the first trial contracts to shs.56, 652,000 and to shs.139, 749,155; hence a total of 224,112,155 (august 2001). In November 2003, during the full contracts, Tshs 422,321,123 were earned as wages to six rural districts, which is 31% of the total cost of the project. The labourers perceived the wage levels as complementary to other sources of income such as farming especially during the drought periods when there was virtually neither harvests nor income from farms. However, wages of 1,200/= per day were considered low compared to the type of hard manual work done. They would wish to be paid Tshs.1, 500/= per day instead of Tshs.1, 200/=. Some road-labourers hired other villagers to work in their farms while they were engaged in road works. Some said they used the wages to expand their farms through hiring more farm workers during that year. Others said they purchased new farmland. In fact the value of land has significantly increased since the completion of the rehabilitation. Many more people are looking for farmland as a result of good prices of farm produce. 8.3 Employment, Income and Wages One would expect better roads to alter mobility and migration patterns as well as income earning opportunities and levels of off-farm diversification. Evidence of any early impacts on employment and livelihood patterns was not easy to establish because only a small proportion of the population was employed in the road works. However, discussions with a mixed group of female and male peasant farmers revealed that there was a significant change in wages/incomes of those who participated in the labour based projects. Those who participated were earning a daily wage of Tshs.1, 200/= a day for a period of not less than seven months (during construction works), and were paid on a weekly basis. These wages are considered a significant off- farm cash income to a rural farmer, and especially in those areas where there are no cash crops and farmers are relatively poor (such as those villages along Msalabani -Tawa road in Morogoro Rural District). As a result, many farmers clearly said that they regarded it as a complementary income which they were able to get during the “hungry season” and hence they used it to meet some of the basic needs and requirements especially buying corrugated iron sheets and cement for replacing their thatched roof and mud houses as well as buying school uniforms and other basic needs for their school-going children. Some revealed that their children had previously stopped going to school because of lack of school uniforms, stationary etc. The team received similar information from the teachers of the primary schools.


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8.4 Access to Social Services The team’s findings revealed that there has been a significant increase in the access to and utilization of health services especially health centers, district and regional hospitals because of improved accessibility, and affordable fare to the towns due to increased availability transport.

Discussions with the clinical officer in charge (TAWA Health center- Morogoro Rural, serving 40,000 people from the neighbouring three wards) revealed that the road has significantly improved health care delivery system in the area, (ward) serving several villagesVillages in the whole Division. “…Unlike before, there was no emergency service for referral to Morogoro hospital in town. Patients had to go by themselves, walking 10 kilometers on foot until Msalabani to get transport to town because the road was impassable… even our four wheel drive ambulance could not pass through… after the road was completed, we can easily refer and/rush emergency cases to Morogoro hospital using the available ambulance. The health center has enough resources to deal with emergencies, and it serves as a diagnostic center for the whole Division(Tarafa)”. He expressed a similar problem that prevailed with vaccines. Although they had a car, vaccines could reach Msalabani junction, and had to be carried by people on foot for hours, hence reducing the potency of the vaccine… “Since the center is adequately staffed and well equipped with solar power and radio call equipment, drugs and vaccines are readily available from Dar es Salaam and are delivered to the center via the District office. With the completion of the road, there are no delivery problems”. The clinical officer in charge revealed that many farmers from the villages along the rehabilitated road participated in the construction works and earned some income. After completion of the road, Trading activities in the area have more than doubled. Farmers are now serious in agriculture due to availability of markets within the villages as buyers follow the farmers; transport to and from Morogoro is now excellent-one can go and come back the same day. More people from neighboring villages are reporting to the center not only because of the availability of drugs and vaccines, but because there are also significant time gains in walking to that particular health center, since the road and bridges are in good condition.

HIV/AIDS: ITECO Company in Morogoro, collaborated with the Department of Community Development and TAWA Health center, conducted campaign on general awareness about HIV/AIDS as well as a research on community knowledge of HIV/AIDS and SDI’s transmission and prevention in 3 districts (Ulanga, Kilombero, Kilosa) in Morogoro. The research was conducted among road workers as well as non-road workers residing at or near roadwork sites. Films and documentaries were shown to the communities; banners, flyers etc. were distributed and displayed; the LBT study team found banners displayed at the public places i.e. markets, shops, schools etc. This has also contributed to an increased awareness about health care and family planning among the communities.


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According to the senior clinical officer-Tawa, the improved road has led to an increased awareness of HIV/AIDS among men, women and youth and the population in general in the rural communities. The communities are now easily accessible by health and community workers from other areas. Education: Discussions and interviews with teachers in Morogoro Rural revealed an increased attendance to school since the road was rehabilitated, hence less truancy. Children used to miss school in order to do petty trade at markets to get money for buying school amenities etc. Employment of parents in road works as well as increased incomes from agricultural produce has had an immediate impact in the sense that most parents could afford to buy school requirements such as uniforms, exercise books etc. for their children. The head teacher revealed to the team that motivation for teachers and other staff assigned to the school has increased after rehabilitation of the road. All the teachers that were assigned to the school, reported on time, and have continued to stay because of easy accessibility; the school could be reached easily by bus /daladalas from Morogoro town. The existence of a health center nearby and easy access to Morogoro Hospital is also an incentive. The teachers could also attend private classes at Matombo Sec. School for their own career and personal advancement. The teachers revealed to the study team that they could get all their needs such as basic consumer items including food from the village markets and shops at cheaper prices than before; moreover, they could also collect their salaries on time directly from Morogoro town, as well as sending their reports to the District Education Office. It was also easy to communicate by telephone with district authorities regarding any official matter such as reports, etc. The impact of all the above has led to a good and conducive learning environment for both students and staff. In the year 2002, out of 35 pupils that sat for standard seven national examinations, eight were selected to join the nearby Matombo Secondary School. 8.5 Housing Before the road works, farmers and others who wished to build better and modern houses or improve the quality of their existing houses, experienced lots of difficulties in getting building materials to the villages. After the project, many villagers have improved their houses by buying corrugated iron sheets to replace the thatched roofs. Availability of cash income from better prices of their agricultural produce/ commodities has also resulted in most of the villagers building houses with burnt bricks and corrugated iron sheets. The project had some impact on the percentage of households building new homes. These wealth effects will no doubt take more time to materialize. There are, however, significant positive impacts on the percentage of households owning radios, and bicycles.


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8.6 Gender Men/women’s perceptions of working in the LBT road works were very positive. Both men and women were equally sensitized on their participation. The drop out rate for men was however higher than women. No clear reasons could be given for this behaviour. Wages were equally paid for piecework on a weekly basis, that is Tshs. 1,200/= per day. The women expressed that it was a much-needed income (for women) to meet family needs. Acquisition of skills in road rehabilitation among men/women and percentage of female participation in LBT road works ranged from 6-28% (MWANZA roads). Some women provided other income earning services to road workers such as food vending and selling soft drinks and local beer. ITECO carried out a study to find out how those women spent the income earned from such services. The study revealed that some women spent it on their families, especially children (buying school uniforms, etc), while others (especially the single women) used the income to seduce men for marriage or for a long lasting relationship. This was a new dimension, which indicated that women from such villages considered having a long-lasting relationship with a man as a source of social security. In Iringa and Mbeya, COWI (implementing a DANIDA funded programme, assisted and encouraged women to participate in construction works including starting their own small-scale labour based contracting companies. (Iringa has 15 contractors out of which 6 are owned by women) to be registered as specialized contractors. Mufindi has 9 out of which 4 are women owned, Rufiji has 9, out of which 3 are women (these were nonexistence) 8.7 Immediate Impacts 8.7.1 Access to Markets In most developing countries, all agricultural activities are rural based while industrial and trading activities are mainly urban centred. So the lack of passable roads in most of the rural areas, has adverse effects not only on agricultural production but also on marketing and trading of farm as well as non- farm commodities. Road improvements done on village/district feeder roads will facilitate access to production centers at the village level, and at the same time will facilitate access to market centers within villages, wards, districts, regions and even at national level. Consumer goods, mainly from urban centers will reach villagers/consumers using the same roads. Before the Msalabani – Tawa road was rehabilitated, bananas and oranges used to rot away in the farms for lack of buyers. For those who could manage to hire a truck for the same, the cost was too high, since they had to hire physical labour to escort/push the vehicle through


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the bad stretches, a job that took, in some cases, the whole day. At times, the bananas or oranges used to rote before reaching the market.

The improvement of the feeder road and other village roads has facilitated access to the local markets where villagers sell their farm produce to traders who in turn transport them to either Morogoro town or Dar es Salaam. It takes hardly two hours to reach Morogoro and 4 hours to Dar es Salaam from Tawa. Most trips are done during the night so the crops reach the market still very fresh. The increased volume of trade and commercial activity was witnessed by improvements made to markets (planned by support of a French NGO), trading centres and establishment of new selling points along the improved roads. Crops transported from Tawa include bananas, oranges, pineapples, mangoes, black pepper, and jack fruit. During this study, one year after the rehabilitation, the number of vehicles operating in the ward had increased three times. Two cars, three buses and two three-tonner pickups are now stationed at Tawa, providing services to Morogoro town. Due to the influx of traders in the area, farm prices of all products have gone-up considerably. A bunch of bananas used to fetch 1,000/= - 2,000 Tshs. now selling at Tshs. 2,000 – 3,000/=. Oranges prices have gone up from Tshs. 5/= to Tshs. 10/= – 15/= per orange. From Morogoro or Dar es Salaam, traders operating shops and kiosks in the ward, buy and transport to Tawa basic consumer items including food items and clothing. In the Mwanza LBT roads, a similar impact was observed. Fresh fish from the fish collection centres along the lake, are now smoothly transported to markets in the district/regional centres. The same applies to the agricultural centres where cotton is transported to the ginneries and from ginneries to rail stations. Basic consumer items reach the villages through the same route. In Geita, the Kasota – Bugalama (12.4 km.) road has opened up Bugalama village to external markets and vehicles come from Geita every day to collect agricultural produce, and deliver farm inputs and consumer items. The prices paid to farmers have improved considerably. For example in 1998 a tin of dried cassava, was sold at T. 150/= but now it fetches up to Tshs. 1,500/=, while that of maize went up from Tshs. 500/= to Tshs. 3,000/= per tin (=20 kg). In Magu District, where the Lugeye – Kigangarama road (4.7 km.) was improved using LBT, residents of Kigangama Ward have confirmed a rapid increase in the traffic intensity, mainly pick-ups involved in the fish business. Similar impact was reported in Sengerema district, where the Nyamahona – Chifunfu road (19.2 km.) was improved using LBT under the UNCDF project. All roads under this project leading to fisheries areas had similar impact. People’s income from sale of fish has almost doubled, compared to the previous situation, and many have been able to build new houses


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and some have bought new bicycles. The contribution towards poverty eradication was noted as being significant for all residents along the improved roads. Transportation of fresh crops to markets has a positive bearing on the development of the agricultural sector, which contributes more than 50% of the GDP. For many years, marketing the agricultural produce has remained a big problem mainly due to failure to evacuate the produce from the remote rural areas in time – mainly due to inaccessibility. The same applies to the fishing industry. Tanzania is currently a leading fish exporter. Interviews carried out with a cross section of villagers during this mission revealed evidence of increased evacuation of crops to markets outside the villages to for example Morogoro town and Dar es Salaam. Farmers and traders reported significantly increased business and incomes because of improved and more reliable access, as did the owners of small retail shops at markets and along the roads. The impression the team got was that the rehabilitated roads have led to increased economic activities, irrespective of whether the method of rehabilitation was labour -based or equipment- based. As a result of the road, two modern markets are being constructed in the villages where the road passes. These will be collection centers for fruits and vegetables such as bananas, mangoes, and oranges etc, which are abundant in that area. Some common facilities will be in place to enable the villagers to initially process and store produce ready for buyers from other areas. The team saw the earmarked areas that will be developed by a local NGO with the assistance of a French NGO. 8.7.2 Incomes Economic Activities and Standards of Living The employment effects from the labour-based road works have made the most obvious immediate impact. Wage opportunities led to new sources of incomes to villagers. Such wage opportunities were non-existence. Income generation to local communities increased their purchasing power and contributed to their welfare. Evidence was obtained from the interviews that labour wages were being used for purchasing livestock, bicycles, improving houses, sending children to school, establishing small businesses or trades and other productive investments. It should be noted that these are additional impacts. Employment was therefore a positive outcome from the labour-based approach adopted. On immediate impacts on living standards, we observed a number of significant effects both at community and household level. For example, the road rehabilitation projects significantly increased the availability of freight services in the project areas (villages) as well as on overall impact on passenger transport. The time needed to reach the closest hospital in case of a serious injury declined substantially. In general, however, there are positive impacts on the availability of services in the project areas. In particular, increases in shops, guesthouses and carpentry work shops, etc.


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The most interesting finding at the household level is that impacts significantly vary across socio-economic groups, and that the strongest impacts were for the poorest households. In particular, although the time needed to walk to various places declined overall, time savings were more pronounced for the poorest households. Small Scale Miners An influx of small-scale miners of ruby and gold (mainly youth) from other areas in Morogoro and other parts of the country has been attracted to the villages because of easy accessibility (after road completion). There were fears that they are a danger to the villages because of interaction and the spread of HIV/AIDS. Moreover, the processing of alluvial gold in the rivers that run through the villages poses a big health hazard since the miners are using mercury. They pose a big threat to the environment. However, the authorities are aware of the problem since the miners have been issued with licenses. The villagers revealed that the influx of people to the area from other places has accelerated the spread of HIV/AIDS, contamination of the water as well as erosion of the riverbanks. Other Enterprises Guesthouses have been constructed along Msalabani –Tawa Rd in order to cater for the many visitors and guests from as far as Kenya on business enquiries and or buying spices, fruits and vegetables. This means that the area is attracting new investments and hence has a big potential to reduce the rate of rural urban migration. Value of Land As a result of better prices for farm produce because of easy accessibility, and high value of fruits and vegetables nowadays, coupled with the fact that a farmer does not have to carry his/her goods to the market, many villagers have now realized the value of land and as a result, the value of land in Morogoro has increased. Many farmers revealed that they now realize that land has more value as they have been getting a lot of enquiries from people as far as Dar as Salaam and Kenya, who would like to invest in farming in their villages. As a result, every farmer is holding on to his land, including the unfertile or fallow land; there is no piece of land nowadays that has no owner. 8.7.3 Participation and Empowerment In Morogoro, the immediate beneficiaries (all villages along the Msalabani –Tawa road) were involved right from the beginning of the project and they strongly felt that the road was “theirs” and that they have an obligation to maintain it. As a result, they had formed a maintenance group even before the project came into being - “ Kitunze Kidumu” group. The group had both female and male members. Unlike the EBT road in the same district, (Madamu-Kinole road) that was being rehabilitated using EBT methods, the people did not have the sense of ownership of the road although they were the ultimate beneficiaries of the road in their community. As some of the interviewees along the road said “barabara ina wenyewe”, literally meaning, “the road has its owners-the District Councill, and not the


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villagers”. As a result the communities had not formed any maintenance group and they did not even have any plans to do so. They felt that it was up to the “owner”, the District Councill to hire contractors, including labourers to maintain it when the need arises. An awareness campaign about the rehabilitation of the Msalabani –Tawa road using LBT method was carried out in the villages before the actual works started, and all those who wished to participate were registered with the contractor. Both men and women were registered. The group members participated as labourers differently. Some were involved in building culverts, others in leveling of gravel, compaction, etc. Hence capacity for villagers in rural road works and maintenance has been enhanced through their direct involvement in LBT. This capacity should be used for future maintenance or new road works. However, the team noted that there is a contradiction concerning the maintenance of Msalabani -Tawa road, and it needs to be resolved soon. Under the District road Support program, a community participation approach towards road maintenance is encouraged. Road committees of 10-15 members at ward and village levels along the road sections are responsible for maintaining the respective road sections. The cost will be fully borne by the district Council. The Kitunze Kidumu group felt that they have been alienated because they had been involved in maintaining that road even before the project started. Now that they have acquired the required skills from the project, they feel that they should be given the opportunity and the responsibility to maintain it. This is an issue that the district needs to resolve with the community in an amicable manner as soon as possible. 8.7.4 Capacity Building The projects have been able to develop the capacity of District staff to supervise/handle LBT contracts. Some projects trained district engineers both inside as well as outside the country. Capacity for villagers in rural road works and maintenance has been enhanced through their direct involvement in LBT. As it has been mentioned above, capacity has been developed for both villagers as well as contractors in LBT methods. This capacity should be used for future maintenance or new road works. Although the contractors in Morogoro mentioned some problems in the use of LBT, such as managing a large labour force, and training villagers during the works, however, they appreciated the use of LBT that maintenance activities will be sustainable over a long period and at a cheaper cost because there will not be a need for equipment from outside the village. The team noted that the district has not yet developed maintenance management system. ITECO has supported TANROADS with a strategy-local resource base for maintenance. The idea is to provide sustainable employment on a part time basis for a long period of time. Tan Roads agreed to reorganise their maintenance approach. The question is how to organise the maintenance approach/works to create employment. TANROADS is waiting for the National Framework to be in place. All the routine maintenance works are executed by using labourers. Rehabilitation of roads will therefore use LBT as far as it is economically and technically feasible.


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8.7.5 General Impacts • Economic impact of improved access can only be effectively judged in the long-term

and disaggregating the effects of a better road from all the other possible variables can be very problematic. Researchers have relied on qualitative surveys based on interviews with immediate beneficiaries to provide valuable information on short and medium term impacts.

• Studies on the impact of LBT in most rural areas have revealed that in the last three decades, substitution of labour for equipment has resulted in construction of low traffic volume gravel roads of standards and costs comparable to those built through capital intensive, while at the same time cost effectively generating employment.

• LBT and EBT roads have similar end-product characteristics and therefore impact on traffic and transport is same, assuming that standards have been observed equally.

• At the district level, where choices exist between LBT and EBT, a comparison of the impact on traffic and transport can be made. Given the existing budgetary constraints and limitations, the impact on a district choosing to use LBT can be made with the one using EBT.

As established in this study, the district using LBT will have more kilometers and a bigger number of roads rehabilitated or maintained, using the same (given) financial resources. As a result, it will have a bigger impact on traffic and transport than EBT district. The economic impact attributable to the choice of technology – in this case LBT, will be vivid on the respective district.

• Although the impact on traffic flow can be considered as a positive one, there are circumstances where negative impact has been recorded. The increased flow of traffic to Tawa has resulted into massive interactions with people from other parts of the country. This kind of opening of this remote place to people from far away has contributed to an increase in the spread of HIV/AIDS. Many people going to this place are basically traders with money to purchase crops/fruits and surplus money for entertainments. Two guesthouses are in use at Tawa, but although this is a positive developmental move, there are doubts about their use, in relation to the spread of HIV/AIDS.

The gold and ruby mining activities that have mushroomed in the area, mainly after the opening, have a similar impact on the spread of HIV/AIDS given the fact that the miners get a lot of money and are ready to spend most of it on entertaining girls/women.

Other than the impact on HIV/AIDS, the mining activities have a negative environmental impact. Since mining is done along the riverbanks, and the miners need water and mercury to separate the gold from the soil, there is a serious water pollution-taking place in the area. This river, Ruvu, which is so polluted, is in fact the source of water for the city of Dar es Salaam.


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9.0 CONSTRAINTS IN THE USE OF LBT

In spite of the apparent benefits of labour-based technology, there appears to be a stigma associated with the use of this technology. This has greatly affected its wholehearted acceptance in society. The following are therefore some of the perceived constraints in the use of LBT.

9.1 Government Leadership

For many years the government had not issued firm directions on the question of LBT in road works. Sectoral policies on the matter have remained draft form for a long period. Fortunately the picture is now changing. The current government position as expressed in the National Transport Policy (NTP) of 2003 supports the choice of appropriate technologies and promotion of creativity and innovativeness [Clause 4.5.1 (ii) and (iii)], and advocates the involvement of the communities in infrastructure development and maintenance [Clauses 6.1, - 6.6]. Short of pronouncing that LBT is the way to go, the NTP has laid down policy directions that encourage maximum exploitation of available resources. At the same time the national Construction Industry Policy (CIP) of 2002 has made the following points relating to policy: • The goal is to develop a dynamic, efficient and competitive local construction

industry. • The participation of the informal sector is recognized as being significant and serves

the majority of the population in the rural areas. • Priority is accorded to increasing participation of local contractors in construction

activities. The policy aims to promote efficient and self-sustaining road works and increase the participation of the private sector.

• To support road works and apply public-private partnership in promoting training, research and information dissemination on application of innovations and state of the art processes.

• Carry out research, document and disseminate information on the informal sector in the construction industry and promote its development.

9.2 Training Institutions

Transfer of technical and managerial skills to consultants and public clients has not percolated the communities and the mainstream road construction activities in the country. Capacity to design and manage community based works it still limited. There is need to organize for adequate transfer skills to contractors, consultants and clients for labour based and labour intensive works and promote community based delivery arrangements.


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Some of the institutions responsible for training road technologists such as the University of Dar es Salaam, Dar es Salaam Institute of Technology and Arusha Technical College, have incorporated a course of labour-based construction in their highway engineering curricula, and as would be expected, the academic staff responsible for these courses are very keen supporters of LBT. However other members of staff are indifferent on LBT, and this tends to have a negative impact on the students. Other teaching institutions have not yet accommodated LBT in their curricula, and this makes the technology appear alien. For it to find acceptance in the society it is important that it is introduced into the educational system at all levels

9.3 Private Contractors and Consultants

The development of the local construction industry is hampered by low capacity of contractors, inadequate work opportunities aggravated by in appropriate contract packaging of works, corruption and limited access to credit facilities. In 1999 many contractors who were interviewed on LBT were not in favour of it. However as they started to get involved in LBT the opposition is gradually waning. Many of the Contractors who were interviewed in Morogoro and Mwanza during this study are positive on the use of LBT. Generally, contractors' main concern is on profit. Their experiences show that labour productivity varies from one area to another. As such, while LBT can be cheaper than the capital-intensive works in one area, it may be more expensive in another area. Hence given the choice, contractors will go for the technology that has more economic gains and is easier to manage. Several private consultants are now involved in LBT in Morogoro and Mwanza regions. Thus there is gradual widening of the horizon for LBT advocates. However the number is still small, and many are still sceptical. One of them, who were first interviewed by the writer in 1999, had not changed his stand in 2003. He still insists “labour-based construction is outdated and must be stopped”. 9.4 Discriminatory Procurement Policies and Procedures Local and donor procurement policies favour large scale EBT types of arrangements because they are simpler to organize and they fall more easily in line with current procurement procedures and practices. There are also indications that large scale EBT road works are more amenable to corruption that the more transparent community based road works. Regulations and procedures that are in use currently, do not promote optimal utilization and application of local material, technologies and practices. In this respect standards and regulations need to be revisited with a view to promoting the realization of these objectives. 9.5 Limited Access to Facilities and Finance Access to equipment and facilities required to implement LBT are in short supply. They are mainly available in LBT projects otherwise their supply is not regular and there are no


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established dealers in those equipment in the country. There is a case for reviving hire facilities, hire purchase and other forms of credit arrangements to enable contractors implement LBT road works.. 9.6 The Public at Large Public awareness and commitment towards labour-based and community based delivery arrangements is still low. As it can be appreciated, the NTP and CIP are fairly new policies although they had been under discussion for many years. Hence their implementation has not yet shown notable outcomes. Indeed the implementation strategies for both policies have not yet been made public, and until this is done, advocacy of LBT will remain an uphill task because of entrenched prejudices in society, and even from those who are expected to lead the campaign for LBT. Indeed the views of many engineers and technicians who have not been closely associated with LBT is that of indifference or scepticism, and much effort is needed to bring them on board. Public opinion on labour-based road works is also diverse. There are those who believe that road construction must involve huge machines, because that is what they are used to see. These are probably the majority. On the other hand there are those who have seen or participated in labour-based works, and appreciate the social benefits of such technology to the local community. At the same time there are many people who are indifferent on whatever technology is used, as long as their livelihood is not threatened. It is said that most local politicians would favour labour-based technology because of the social benefits to the local community. For those areas where LBT works have been implemented the politicians have been able to claim credit to bringing jobs and development to the people.


35

10.0 CONCLUSION AND RECOMMENDATIONS With considerable levels of underemployment in Tanzania accentuated by seasonality in the rural areas there is ample room for labour based road works. 10.1 Employment and Incomes

The population of Tanzania is predominantly rural (75%) and poverty is essentially a rural phenomenon with 90% of all the poor living in the rural areas. This suggests that any poverty reduction strategy cannot afford to overlook the challenges of employment and income generation in rural Tanzania. The report acknowledges that both the LBT and EBT employment for public work schemes have direct impact on job creation. However, the pilot type of approach that has been adopted to date implies that the nature of the jobs created is temporary and commands rather uncertain incomes to households and communities. Employment creation and the corresponding income generation fall short of having longer term effects on development of households and communities. It has been shown that potentially 75,000 jobs could be created from labour based road works and these jobs would be widely spread out in the country.

LBT offer opportunities for creation of physical assets in the country using labour-intensive techniques. The earnings to labour would support building equity for initiation of businesses which could further employment creation in the country as a whole. As a consequence, the business initiatives in rural areas reduce unemployment and poverty and generate pro-poor economic growth in the rural areas. Thus, the report is emphatic on recommending that it is a necessity to promote job creation in both public and private sectors of the economy in a sustained growth approach.

10.2 The Challenge of Sustainable Development The issue of LBT versus EBT for a country like Tanzania, which has scarcity of capital and an abundance of labour, may be viewed as a problem of sustainable development, which has been a subject of many world forums for many years. What is needed is for the government encourage the adoption of sustainability as an overall national strategy in all sectoral policies and in budgets and investment decisions. In order for this to happen, governments create mechanisms for the initiation and coordination of action for sustainability with special reference to adoption of sustainable technologies fully involving professional engineering expertise in strategic planning and policy development.

10.3 Financial and Economic Cost comparisons The study has investigated the impact of changes in the financial level and distribution of capital and labour in the rehabilitation of the feeder roads in the economy. The simulations


36

have provided insights into the way that the costs and benefits of the LBT and EBT percolate through the economy. The economic costs approach has generated higher impact on the LBT than EBT.

The net present value in terms of economic costs are greater for LBT than EBT. The economic costs approach has generated higher impact on the LBT than EBT.

In the case of the comparative analysis between LBT and EBT road works economic analysis is relevant in four respects:

(i) Transfer payments are not significant

(ii) Linkage effects are higher for LBT in terms of higher earnings accruing to households and communities and the incomes these households would spend on consumer goods and inputs into agriculture and other economic activities. Local manufactures are more likely for LBT equipment than for the more sophisticated EBT.

(iii) LBT is associated with greater technological externalities as households and

communities enhance the skills of undertaking road works. In addition, several of the equipment can be manufactured locally.

LBT is associated with greater foreign exchange savings in the form of imported

equipment. Cost of importing the LBT equipment and their import content are both lower. The overall impact is reflected in the secondary or multiplier effect of the economy as a whole. These effects are higher for LBT largely through consumption and production linkages. The model is of an input/output type and it captures key macro economic variables in Tanzania economy such as GDP, household income, private investment, and public deficit and trade balance, to mention the few. It uses both secondary and primary data to assess the direct and indirect effects of investment in rehabilitation of feeder roads in Tanzania comparing the LBT and EBT approaches. The results show that LBT road works generate greater GDP impacts than EBT. Government revenue impacts are higher for LBT and LBT generates higher levels of employment. The results from case studies have demonstrated positive medium term and long term socioeconomic benefits of LBT. The positive impacts come through employment and income generation and improved standards of living among rural households and communities. In addition, LBT was found to be more consistent with participatory development and empowerment. Higher levels of participation in road works have been demonstrated for LBT as compared to EBT. The higher levels of participation in development leads to greater impacts on capacity building for communities in road works.


37

As established in this study, the district using LBT will have more kilometers and a bigger number of roads rehabilitated or maintained, using the same (given) financial resources. As a result, it will have a bigger impact on traffic and transport than EBT district. The economic impact attributable to the choice of technology - in this case LBT, will be vivid on the respective district.

10.4 Procurement and Funding Mechanisms Much of the adoption of EBT even where LBT is superior is dictated by the available produrement procedures, regulations and funding mechanisms. There is need to examine and revisit existing procurement and funding mechanisms at all levels (nationally, regionally and internationally) to ensure that adoption of LBT is not held back by discriminatory procedures, systems and financing mechanisms.

10.5 From Pilot to Scaling up through Policy Action Labour based technologies have been implemented successfully in regions such as Tanga, Mbeya, Rukwa, Mwanza, Kilimanjaro, Arusha, Shinyanga, Morogoro, Mtwara, Iringa, Kagera and Coast. There is substantial evidence that the pilot phase has proved the impact of LBT on employment and income generation for poor households and communities. It may be added that since the pre-independence and early post-independence years in the 1960s when labour based road works were widely applied in the Public Works Department there has been considerable improvement in the technology for LB road works. At the same time poverty concerns are being revived through the Poverty Reduction Strategies. The combination of these developments lays a firm foundation for labour based road works to be institutionalized and applied widely at national level. The recent emphasis on feeder roads construction and rehabilitation as a major element in agricultural and rural development reinforces the need to make a concerted shift towards LBT. Government leadership has advocated the use of appropriate technologies and participation of communities in development. LBT is consistent with these concerns. What is needed is to move forward and turn these policy statements into reality. A clear national policy should be prepared and adopted with its implementation supported by an awareness campaign. Action plans need to be prepared with identifiable indicators, which can be monitored on a continuous basis. Government leadership should be held accountable for preparing and monitoring these action plans. Ownership of LBT Programme be clarified to indicate who will be responsible for co-ordination and implementation. Responsibility should be shared between the Ministry of Works, PORALG and District Councils during the preparation of the Action Programme. However, government efforts will need to be complemented by the efforts of other stakeholders. Implementation co-ordination should be addressed institutionally by putting in place a national focal point for LBT where all information will be collected, stored and disseminated and where co-ordination linkages and interactions among stakeholders will be managed.


38

10.6 Capacity Building for LBT to be Enhanced

Training institutions, in particular the leadership need to be challenged to incorporate more systematic training in LBT. This will require that curricula be revisited with an LBT perspective. It is recommended that a national training center and training programme be developed and guidelines on planning and budgeting for LB works be introduced to client organizations. Existing knowledge gaps should be filled through research.

The capacity of private contractors needs to be built in the area of LBT. In particular, preference should be given to community-based contractors who can make use of labour in the communities and develop the requisite skills accordingly. Capacity building of contractors should be accompanied with revision of contract documentation and tendering procedures, revisiting standards and specifications and improving access to financial services and working facilities such as equipment and tools.

Consulting skills are largely biased towards EBT. The capacity of consultants in LBT will need to be built. The domestic market for LBT type of equipment needs to be created and developed. The study found that most of the LBT equipment are not stocked in the market. Such equipment is often supplied through specific donor funded projects. The market for LBT equipment could not have developed under the current conditions whereby LBT road works are undertaken mostly as pilot projects usually funded by specific donors. The LBT approach has yet to be mainstreamed. It is expected that as LBT approach moves from the pilot stage and is scaled up to become the national approach for rural feeder road construction and rehabilitation then conditions for developing the domestic market for LBT equipment will have been created. However, in order to facilitate early development of the domestic market for such equipment there is need for policy intervention to create and develop that market. The next stage would be to develop local manufacturing of some of the equipment required to carry out LBT road works.

10.7 Public Education to be Launched

It should be realized that the adoption of new ways of doing things is a process. Its solution calls for change in attitude, especially on what development really is, and it requires some dynamics to bring about such changes. One of the most important ingredients of that change is education. This implies that education on the issues involved in sustainability and the benefits of LBT be given highest priority. This implies not only to the public in general to heighten consciousness of the critical importance of sustainability and sustainable technologies such as LBT but also to the engineers, technologists, and scientists who will be involved in promoting, planning and implementing development in the future, to provide skills to develop and implement sustainable technologies.


39

Public opinion and local leadership in local councils need to be informed systematically on the viability and benefits of LBT in general and to community development in the local areas in particular.


40

REFERENCES: DOCUMENTS AND PAPERS 1. Report on Baseline Data on the Use and Costs of Transportation on Less than

Trunk Roads in Morogoro Region, by D.S.R.M. Mona and J.E.M. Ruzibuka, Morogoro, September 1993.

2. Report on the Use and Costs of Transportation on Less than Trunk Roads in

Morogoro Region, by D.S.R.M. Mona and J.E.M. Ruzibuka, Morogoro, March 1995. 3. Estimated Potential for Use of Labour-based Methods in Road Works in

Tanzania, by ATU, MWCT, June 1995. 4. The Engineer’s Response to Sustainable Development, by The World Federation

of Engineering Organizations, February 1997. 5. Labour – based Techniques for Road Construction: Choice of Technology and

Recommended Approach by P.F.C. Komba, L.M. Kyombo & U.L. Msengesi in Proceedings ARC 97.

6. Report on the Consultative Seminars Conducted in All Regional Engineers Offices on

the Use of Labour-Based Technology in Roadworks in Tanzania, by ATU, October 1998.

7. An Opportunity for Employment Creation: Labour-based Technology in

Roadworks – The Macro Economic Dimension – Uganda, by Gary Taylor and Moses Bekabye, June 1999.

8. Employment Intensive Investment: Their economic impact and the use of

productivity indicators. 9. Roads as a Tool for Poverty Eradication: The Case of Rural Tanzania, by

Servacious B. Likwelile in ARC 99. 10. The development of Labour–based Technology in the Roads Sector in Tanzania:

Achievements and Proposed Future Direction, Volumes 1 & 2 by P.H. Bental, I.N. Kimambo, F.J. Shirima & N.M. Lema, December 1999.

11. Employment Intensive Infrastructure Programmes: Labour Policies and Practices,

by David Tajgman & Jan de Veen. 12. Employment-Intensive Investment in Infrastructure: Jobs to Build Society, ILO,

2000. 13. Tanzania Social Action Fund: Public Works Program Implementation Handbook,

August 2000.


41

14. Poverty Reduction Strategy Paper (PRSP), October 2000. 15. Appropriate Technology in Road works – Development and Future Plans in Tanzania,

by L.M. Kyombo & U.L. Msengesi in Proceedings ARC 2000. 16. URT/UNDP/UNCDF Promotion of Labour-Based Technology in Tanzania, Final

Report, Vol. 1, by P.H. Bentall, K.D. Osei-Bonsu, F.J. Shirima and S.B. Likwelile, Dar es Salaam, December 2000.

17. Poverty Eradication Strategy: Experiences, Challenges and the Way Forward for

Tanzania in the Context of the Construction Industry, by Eng. K. W. Salewi, NIGP in Construction Industry Forum 2001.

18. Republic of Namibia White Paper on Labour–based Works Policy. 19. Study on Public Expenditure Review for District Roads in Tanzania FY 2000/01

by Department of Economics, UDSM, April 2001. 20. Labour – based Technology in road Construction and Maintenance: Experience,

Opportunities and Challenges in Tanzania, by L.N. Kyombo & U.L. Msengesi in Proceedings of 1st T2 Conference, 2001.

21. Increasing the Skills of Labour – based Contractors through the Transfer of

Appropriate Road Surfacing Technology by P.A.K. Greening, C.S. Gourley and J.M. Tournee in Proceedings of 1st T2 Conference, 2001.

22. Developing Pathways out of Poverty: The Role of Labour Intensive Road

Construction and Maintenance Methods in the Political Economy of a Democratic South Africa, by James Mlawu, in Proceedings of 1st T2 Conference, 2001.

23. UNDP/UNCDF Support to Decentralisation in Mwanza Region: Mid-term

Evaluation Mission, June 2001. 24. Roads Rehabilitation and Maintenance Project in Lindi and Mtwara Regions,

Tanzania, Phase II, 1998-2002: Project Completion Report, July 2002. 25. Application of Labour – based Technology in Road Maintenance in Tanzania:

Experience, Achievements and Challenges, by K.M.I.M. Msita & L. Lucas in Proceedings of ARC 2002.

26. Socio-Economic Baseline Study for: Mwaya-Luhombero Road-Ulanga District, and

Ngilori-Iyogwe Road-Kilosa District, ITECO, December 2002. 27. Construction Industry Policy, December 2002.


42

28. National Transport Policy, 2003. 29. An Analysis of Methodologies Used to Evaluate the Impact of Labour-based

Infrastructure Programs (LBIP) on Poverty Reduction, by S. Amer Ahmed, ILO. 30. Registration and Promotion of Labour-based Contractors, by D. Msekeni, CRB in

Proceedings of Stakeholders Workshop on Transformation of Appropriate Technology Training Institute, August 2003.

31. NCC Experience in Training in Labour Based Technology, by K.M.I.M. Msita and

Wambura M.S.R. Wambura, in Proceedings of Stakeholders Workshop on Transformation of Appropriate Technology Training Institute, August 2003.

32. Draft Seminar Report on the 10th Regional Seminar for Labour-Based

Practitioners held in Arusha, Tanzania, October 2003. 33. Experience of Using LBT in Rehabilitation and Maintenance of District and Feeder

Roads, by H.R.S. Msangi and Geert Muijers in Proceedings 10th Regional Seminar for Labour Based Practitioners held in Arusha, Tanzania, October 2003.

34. National Bureau of Statistics (NBS): Household Budget Survey 2000/01, Dar es

Salaam, 2002. 35. The Economic survey 2002. President’s Office- Planning and Privatization. Dar es

Salaam June 2003. 36. Integrated Labour Force Survey 2000/01, National Bureau of Statistics, Dar es

Salaam, November 2002. 37. Taking the Use of Labour Based Technology to Scale, Programme Document,

MOW, February 2003. 38. The Economic Value of Incremental Employment in the South African

Construction Sector, by Barry Standish, ILO Geneva, October 2003.


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APPENDIX I: MACRO-ECONOMIC STATISCTICS TABLES TABLES Table 3.1: GDP 1990-2002 (Billion Tshs.)

GDP at factor cost Current prices

GDP at factor cost At 1992 prices

At current prices 1990 1991 1992 1993 1994 1995

760 990

1276 1608 2125 2797

1219 1253 1276 1281 1299 1345

1996 1997 1998 1999 2000

3453 4282 5125 5978 6706

1402 1448 1506 1577 1654

2001 2002

7625 8618

1749 1857

Source: The Economic survey 2002. President’s Office- Planning and Privatization. Dar es Salaam June 2003

Table 3.2: Contribution of Various Economic Activities to the GDP at 1992 prices 1990-2002 (%)

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1 Agriculture 47.9 48.3 48.0 49.3 49.6 50.7 50.6 50.1 49.1 48.9 48.1 48.0 47.52 Mining and Quarrying 0.9 1.0 1.1 1.1 1.3 1.4 1.4 1.7 2.0 2.1 2.3 2.5 2.7 3 Manufacturing 8.8 8.7 8.2 8.2 8.1 7.9 8.0 8.1 8.4 8.3 8.3 8.3 8.44 Electricity and water 1.5 1.6 1.5 1.6 1.6 1.6 1.7 1.7 1.7 1.7 1.7 1.7 1.6 5 Construction 5.7 5.2 5.4 4.6 4.6 3.8 3.9 4.1 4.3 4.5 4.6 4.8 5.06 Trade, Hotels and Restaurant 16.3 16.2 15.8 15.7 15.7 15.7 15.6 15.8 15.9 16.1 16.4 16.5 16.67 Transport and communication 4.6 4.6 5.2 5.2 5.1 5.3 5.1 5.2 5.3 5.4 5.4 5.5 5.5

8. Financial and Business services 10.0 9.8 10.0 10.5 10.6 10.3 9.9 10.3 10.5 10.4 10.4 10.2 10.0 9. Public Administration and other services 8.7 8.9 9.2 8.8 8.7 8.2 8.0 7.9 7.8 7.7 7.7 7.5 7.3 Source: The Economic Survey, 2002. The President’s Office – Planning and Privatization Dar es Salaam June 2003 Table 3.3: GDP Growths by Economic Activity 1990-2002 (%) (At constant 1992 prices) 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 1 Agriculture 5.5 3.6 1.2 3.1 2.1 5.8 3.9 2.4 1.9 4.1 3.4 5.5 5.02 Mining and Quarrying 16.5 11.7 7.7 8.2 15.0 11.7 9.6 17.1 27.4 9.1 13.9 13.5 15.0 3 Manufacturing 4.1 1.9 -4.0 0.6 -0.2 1.6 4.8 5.0 8.0 6.3 4.8 5.0 8.04 Electricity and water 7.9 11.1 -1.3 0.9 2.0 6.1 11.1 2.2 5.5 3.9 5.9 3.0 3.1 5 Construction 30.5 -7.1 5.8 -14.4 1.4 -14.7 7.6 8.2 9.9 8.7 8.4 8.7 11.06 Trade, Hotels and Restaurant 7.4 2.5 -0.7 -0.4 1.1 3.5 3.5 5.1 4.7 6.0 6.5 6.7 7.0 7 Transport and communication 0.5 2.7 14.2 0.1 0.9 5.9 1.1 4.9 6.2 5.8 6.1 6.3 6.4 8. Financial and Business services 1.7 1.4 3.8 4.8 2.7 0.6 0.4 7.7 5.6 4.1 4.7 3.3 4.8 9. Public Administration and other services 3.0 5.0 5.6 -3.9 -0.1 -2.7 1.6 3.2 2.7 3.5 3.6 3.5 4.1 10. GDP at factor cost 6.2 2.8 1.8 0.4 1.4 3.6 4.2 3.3 4.0 4.7 4.9 5.7 6.2 Source: The Economic Survey, 2002. The President’s Office – Planning and Privatization Dar es Salaam June 2003


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Table 3.4: Price Index of goods and services consumed by urban residents in Tanzania Mainland (1994 = 100)

Price Index Percentage Charge 1990 1991 1992 1993 1994 1995

34.5 44.4 54.1 67.1 90.9

115.8

35.8 28.7 21.8 24.0 35.5 27.4

1996 1997 1998 1999 2000

140.1 162.6 183.5 197.9 209.7

21.0 16.1 12.9

7.8 6.0

2001 2002

220.5 230.5

5.2 4.5

Table 3.5: Trends in External Trade 1992-2002 ($ million)

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002Exports (Fob) 397.0 439.0 519.0 683 764 753 589 543 663 776 903Imports (Fob) 1317.0 1275.0 1309.0 1441 1213 1148 1382 1415 1368 1560 1511Goods balance -920 -836 -790 -658 -449 -395 -794 -872 -704 -784 -609Current account -708 -1022 -711 -646 -461 -404 -921 -560 -470 -480 -325

Overall balance -408 -737 -461 -382 -231 202 171 -109 68 -51 285

Source: The Economic Survey, 2002. The President’s Office – Planning and Privitisation Dar es Salaam 2003


46

Table 3.6: Trends in Government Finance 1993/94 – 2002/03 (Billion Tshs.)

1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 242 331 448 572 628 689 778 930 1043 1184 220 300 384 505 586 616 685 828 938 1098

Domestic Revenue Tax revenue Non-tax revenue 22 31 65 67 41 73 93 102 104 86

411 453 500 731 856 928 1169 1307 1463 1844 336 387 470 606 670 791 809 1021 1118 1401

Total Expenditure Recurrent Expenditure Development Expenditure 75 67 30 125 187 137 360 286 345 443 Deficit surplus -168 -122 -52 -159 -229 -238 -391 -378 -420 -660

164 82 64 178 256 224 468 381 502 719 Financing

- External sources - Internal sources 4 41 -11 -19 -19 -12 8 20 -82 -59

Source: The Economic Survey, 2002. The President’s Office – Planning and Privitisation Dar es Salaam 2003


48


49

Table 3.7: Population (millions) 1990-2002

Year Population (million) 1990 24.6 1991 25.3 1992 26.0 1993 2607 1994 27.5 1995 28.3 1996 29.1 1997 30.0 1998 30.9 1999 31.9 2000 32.8 2001 33.9 2002 34.6

Source: Economic Survey 2002

Table 3.8: Labour market participation 1990/1 and 2000/01

1990/91 2000/01

Employment to population ratio 70 76

Proportion of paid employment 9 7

Proportion of self employment 8 8

Proportion working in public sector 5 2.5

Proportion working in government 3 2

Proportion working in parastatals 1.7 0.5

Proportion working in private formal sector 3 5

Proportion working in private informal sector 8.3 8.8

Proportion working in agriculture 84 81

Unemployment rate standard definition 3.6 5.1

Unemployment rate national definition - 13

Urban unemployment standard definition 10.6 14.8

Urban unemployment National definition - 31.9

Underemployment rate standard definition 4 11

Underemployment rate national definition - 5.3

Labour force participation

- Total

- Urban

- Rural

72

67

74

80

63

83


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APPENDIX II: CRITERIA FOR LBT CONTRACTORS CRITERIA FOR REGISTRATION OF LABOUR BASED ROAD SPECIALIST CONTRACTORS

REGISTRATION REQUIREMENTS FOR TECHNICAL PERSONNEL, PLANT & EQUIPMENT,

HAND TOOLS, CONTROL AIDS, SAFETY GEAR & OFFICE SERVICE FACILITIES

RESOURCE CLASS ONE

CLASS TWO

CLASS THREE

REMARKS

A. KEY STAFF

1 Head of Organisation 1 1 1

2 Labour Based Trained Engineer* 1 1** -

3 Labour Based Trained Supervisor/Technician 3 2 1

4 Artisans 2 1 1

B. PLANT & EQUIPMENT

1 Tow Grader(s) 1 1**

2 Tipper(s) 1 1** -

3 Tractor(s) 1 1 -

4 Trailer 2 1 -

5 Towed Water Bowser 1 1 -

6 Pedestrian Roller 2 1** -

7 Dead Weight Roller 1 1 -

8 Plate Compactor 1 - -

9 Pick-up/Van 1 - -

10 Motor-Cycle 1** 1 -

11 Bicycle - - 1**

C. HAND TOOLS

1 Pick Axes/Mattocks 50 30 5

2 Hoes 30 20 5

3 Shovels 60 30 5

4 Spreaders 30 15 5

5 Wheel Barrows 20 10 5

6 Earth Rammer 6 4 2

7 Watering Cans/Buckets 10 5 5

8 Water Storage Drums (2001) 2 2 1

9 Matchettes 20 10 5

10 Slashers 20 10 5

11 Head Pans (Karais) 30 20 5

D. CONTROL/MEASUREMENT AIDS

1 Camber Boards 10 5 2

2 Profile Boards 20 10 5


51

RESOURCE CLASS ONE

CLASS TWO

CLASS THREE

REMARKS

3 Line Levels 4 2 1

4 Spirit Levels 10 5 2

5 Ditch Templates 15 10 3

6 Side Sloping Templates 15 10 3

7 Ranging Rods 20 10 5

8 Boning Rods (set of 3) 4 2 1

9 Tape Measures (30m) 6 4 2

10 Tape Masures (5m) 6 4 2

E. SAFETY GEAR

1 Helmets 10 5 2

2 Gum Boots (pairs) 10 5 2

3 Gloves (pairs) 10 5 2

4 Reflective Jackets 10 5 2

5 Reflective Cones 12 8 4

6 First Aid Kit 3 2 1

F. LAND & OFFICE

1 Office (m2) 20 15 10

2 Repair Workshop/Store (m2) 50 30 -

G. FINANCIAL REQUIREMENT

1 Average Annual Turnover (TShs.) 30,000,000 15,000,000 NA

2 Liquidity [Cash, Stock & Bonds] (TShs) 10,000,000 2,000,000 NA

3 Fixed Assets (TShs) 40,000,000 10,000,000 NA

H. EXPENSES***

1 Year of Practice in the Field of application 4 2 NA

2 Maximum size of any single project executed in the years of practice or since last upgrading (TShs)

80,000,000 40,000,000 NA

3 Average size of al least 3 projects executed in the years of practice or since last upgrading (TShs)

30,000,000 7,500,000 NA

* Must be Registered with Professional Board

** Recommended but not Mandatory

*** Experience shall apply to applicants for upgrading only


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APPENDIX III: CRITERIA FOR CIVIL WORKS CONTRACTORS

CRITERIA FOR REGISTRATION OF CIVIL WORKS CONTRACTORS

REGISTRATION REQUIREMENTS FOR PERMANENT PERSONNEL, PLANT, EQUIPMENT AND TOOLS, SAFETY GEAR, OFFICE SERVICE

RESOURCE CLAS

S I CLASS II

CLASS III

CLASS IV

CLASS V

CLASS VI

CLASS VII

REMARKS

A. KEY STAFF (ATTACH CV’S) 1. Head of Organisation 1 1 1 1 1 1 1 2. Accountant* 1*** 1*** 1*** 1*** 1*** 1*** 1*** 3. Structural/Civil Engineers 2 2 1 1*** 1*** - - 4. Civil Engineering Technicians 2 1 1 1 1 1 1 Holder of FTC or

equivalent 5. Quantity Surveyor* 1 1 1 1 1 - - Holder of Diploma or

Degree 6. Land Surveyor 1 1 1 - - - - Holder of Diploma or

Degree 7. Artisans 3 2 2 1 1 1 1 Trade Test Grade I with 2

years practical experience 8. Workshop Mechanics 1 1 1 9. Workshop Engineer* 1 1 1 10. Electrical Technician** 1 1 1 B. PLANT AND EQUIPMENT 1. Bull Dozers (Min capacity 120) 1 1 - - - - - 2. Graders (Min capacity 100 HP) 2 1 1 - - - - 3. Loaders (Min capacity 100 HP) 2 1 1 - - - - 4. Vibrating Rollers (Min. capacity 10 T)

3 2 2 - - - -

5. Tandem Rollers (Min. capacity 10T)

2 1 1 - - - -

6. Pneumatic Tyre Rollers 2 1 1 - - - - 7. Pedestrian Rollers/Plate Compactors

3 3 2 2 1 - -

8. Hand Compactors 2 1 1 1 1 1 1 9. Water Bowsers/Trailer 2 1 1 - - - - 10. Tippers 6 4 3 2 1 1** - 11. Backhoes 3 2 1 - - - - 12. Agricultural Tractor W/Loaders 1** 1** 1** 1 1 - - 13. Low Loader 1 1 1 - - - - 14. Non-tipping Truck 2 1 1 1 1** 1** - Min capacity 3T 15. Concrete Mixers 4 2 1 1 1 1** 1** 16. Compressors 3 2 1 1 1** - - 17. Water Pumps 3 3 2 1 - - - 18. Poker Vibrator 3 2 1 1 1** - - 19. Hoisting Equipment 2 1 - - - - - 20. Light Duty Vehicles (Pick-ups) 4 4 2 2 1 1 1 21. Generator Set 2 2 1 1 - - - 22. Welding Set 2 1 1 1 - - - 23. Mechanical Broom 1 - - - - - - 24. Asphalt Plant 1** 1** - - - - - 25. Asphalt Paver 1** 1** - - - - - 26. Chip Spreader 1 1** 1** - - - - 27. Stone Crusher 1** 1** - - - - - 28. Bitumen Distributor or Sprayer 1 1** 1** - - - - 29. Levelling Instrument (e.g. Dumpy level

2 1 1 1** 1**


53

RESOURCE CLASS I

CLASS II

CLASS III

CLASS IV

CLASS V

CLASS VI

CLASS VII

REMARKS

30. Theodolite/Total Station 1 1 1** 31. Pick axes, hoes, wheel barrows etc

30 30 20 20 15 15 15

C. LAND & SERVICE FACILITIES

1. Storage Yard m2 1000 800 500 300** 100** 100** - 2. Service W/Shop m2 200 150 100 100** 50** - - 3. Office m2 100 50 50 20 20 10 10 D. SAFETY GEAR (Every person on a construction site should be provided with safety

gear, especially helmets)

1. Helmets 50 20 10 5 5 3 2 2. Boots (pairs) 50* 20 10 5 5 3 2 3. Gloves (pairs) 50 20 10 5 5 3 2 4. Reflective Jackets (pairs) 50 20 10 5 5 3 2

These are minimum stocks Additional requirements To be procured on project execution


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APPENDIX IV: STANDARD TOOLS USED FOR LBT Standard Tools used for LBT:

1. HANDTOOLS Shovel (Round Mouth Open Socket) Jembe (Plain Hoe) Jembe Fork Mattock Pickaxe Crowbar Heavy Duty Rake Heavy Duty Spreader “Panga” Wheelbarrow Rammer

2. CONTROL & SETTING OUT TOOLS Boning Rods Line & Level Profile Boards Camber – Slope – Ditch Template Ditch, Slope and Culvert Excavation Templates

3. HAULAGE AND TRANSPORT Small Agricultural Tractor Large Agricultural Tractor Standard Trailer and Hitch 7 Tonne Truck Water Bowser Water Pump Fuel Bowser

4. COMPACTION Pedestrian Vibrating Roller Hand Roller Vibrating Plate compactor

5. GRADING Light Towed Graders Heavy Towed Graders

6. CULVERT MOULDS 60 diameter 90 diameter

7. SOIL, CONCRETE & ROAD TESTING Dynamic Cone Penetrometer (DCP) Slump Test Merlin – Low cost road roughness measuring machine


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APPENDIX V: LIST OF PERSONS INTERVIEWED

Date Name of Interviewee Position/Organization Overview of Discussions 19/8/2003, 22/8/2003 11/5/2004

Kwaku Osei-Bonsu Engineering Specialist, ILO, Addis Ababa

Discussed the scope of the study, the expected output, and sources of information. Provided some of the background literature available with ILO. Discussed the delay in submission of comments on the draft report, and made follow up on the finalization of the report.

19/8/2003, 15/9/2003

Laurent M. Kyombo U.L. Msengesi

Senior Engineer, ATU, MOW. Engineer, ATU, MOW

Discussed the terms of reference and the details of the Consultant’s programme of work. Guided the team on possible sources of information.

15/9/2003 Patrick A.L. Mfugale Director, Regional Roads, MOW

Discussed the Consultant’s work programme and gave guidance on sources of information, and whom to see in the roads sector. Agreed to designate 2 MOW Couterpart staff for the study, and also to issue letter of introduction.

11/5/2004 E.W. Raphael Ag. Senior Engineer, ATU, MOW

Follow up on final report in the company of Mr. Osei-Bonsu.

17/9/2003 Ali Ibrahim Issa Mfinanga

Director, ILO Area Office, Dar-es-Salaam Programme Assistant, ILO Dar-es-Salaam

Briefing on the Study, and the Consultant’s work programme. Requested letter of introduction to persons to be interviewed.

30/9/2003 Prof. V.P. Diejamaoh Issa Mfinanga

Ag. Director, ILO Area Office, Dar-es-Salaam Programme Assistant, ILO Dar-es-Salaam

Briefing on the Inception Report. Requested comments on the report ASAP to enable the team to proceed with the work as per programme.

21/10/2003 Morten Collins Nils Bakke

Sen. Highway Engineer COWI Tanzania Ltd Sen. Highway Engineer COWI Tanzania Ltd

COWI, under DANIDA, has been involved in road works in Rufiji, Kisarawe, Mufindi and Iringa Districts. The work has largely been spot improvement, costing in the range of TSh. 3m/= to 7m/= per km.

21/10/03 Gerald Matindi District Engineer Rufiji Project has managed to make the


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roads passable. Most of the works were EBT but some LBT’s. For LBT there were 9 small contractors of whom 3 are women.

21/10/2003 Kenneth Haule District Engineer Iringa

Road works have been carried out by both EBT and LBT. For LBT some 15 small contractors participated, of whom 6 were women.

23/10/2003 Erwin Schelbert Benjamin Karumuna Frank Mbilinyi

Resident Director, ITECO, Morogoro Director, ITECO Project Engineer, ITECO, Morogoro

ITECO has administered LBT contracts in Ulanga, Kilombero, Kilosa and Morogoro Districts in collaboration with the District Councils. A total of 13 contracts were awarded.

23/10/2003 Sohan Sunder Shrestha

Visiting official from Nepal (Director General, Infrastructure Development & Agriculture Roads)

In Nepal LBT involves village governments, and part of the earnings are invested in a fund for maintenance of the roads.

23/10/2003 Andreas Beusch LBT Expert, ITECO, Morogoro

Has had more than 25 years experience with LBT in various countries, including Kenya. In most countries LBT has been project/donor driven and has not been successfully institutionalized. For sustainability, LBT should be private sector driven, but needs political support.

23/10/2003 Simon Sumari MD, SECO Engineers

& Contractors, Morogoro

Has done many EBT road works. Initially was opposed to LBT, but after doing one project, Msalabani – Tawa road, is now convinced that it is a viable alternative even for a Contractor.

23/10/2003 Constantine Luanda

Ward Executive Officer, Tawa Ward, Morogoro

Construction of the road by LBT has had a positive impact in the social economic life of the people in Tawa village.

24/10/2003 Douglas L. Chilewa MD, Mackdouglas Investment, Civil Contractor, Morogoro

Executed 4 km of Mwaya – Luhombero road by LBT. Labour productivity varied from place to place.


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24/10/2003 Frank Sekibojo Malletius Sasagu

MD, FEM Construction Ltd Technician, FEM Construction Ltd

Rehabilitated 4 km of Mwaya – Luhombero road by LBT. Used hired tipper and pedestrian roller, but was able to make profit.

24/10/2003 R.R. Shao Director, Techno Engineers and Contractors, Morogoro

Rehabilitated 5.4 km of Msalabani – Tawa road by LBT in 6 months. Believes that LBT is best suited to small contractors because of difficulties in managing a large labour force. Profit margin is low on LBT projects. However roads done by LBT find ownership in the community.

27/10/2003 Hussein Mativila Technician, SAMCAT (T) Ltd Contractors, Morogoro

Rehabilitated 4 km of Kibaoni – Machipi – Michenga road in Kilombero by LBT. Although this created employment for the people, the profit margin for the Contractor was lower than for EBT roadworks.

03/11/2003 Geert Muijsers Halifa Msangi Christopher C. Luhanyula

Programme Manager, UNDP/UNCDF Support to Decentralisation Programme, Mwanza National Road Advisor, District and Feeder Roads Project (DFR), Mwanza RAS Engineer, Mwanza

UNDP/UNCDF has supported the rehabilitation and maintenance of district and feeder roads (DFR) in the past 5 years. The DFR has been able to rehabilitate 250 km of roads by LBT in six districts of Mwanza region. This has created more than 500,000 workerdays of employment and generated an income of about TSh. 685 million for the rural communities, thus contributing to poverty alleviation.

03/11/2003 Emmanuel Korosso Regional Manager, TANROADS, Mwanza

Labour rates paid by TANROADS for EBT road works is TSh. 2,000/= per day while contractors executing LBT works pay TSh. 1,000/= per day, thereby retaining a large profit margin for themselves. In order for the LBT projects to contribute to poverty reduction the contractors should pay fair wages.


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04/11/2003 Joseph Makinda Fabian Murusali

Ag. DED, Magu District Council Ag. DE, Magu District Council

The DFR project has been of great benefit to the district. LBT has been well received. Women participated in the project was generally low. The project is showing significant economic impact in those villages where the roads have been improved.

04/11/2003 Masumbuko Reuben Peasant Farmer of Isengabuye village on Igombe-Kayenze road

The Igombe – Kayenze road was rehabilitated by EBT about 2 years ago, but since it was completed no maintenance has been done on it. In contrast, the Kayenze – Kisesa road which was done by LBT is getting maintenance because the people who participated in its rehabilitation feel a sense of ownership – “barabara ina wenyewe”.

04/11/2003 Enock M. Kalimbiya (plus 10 other villagers)

Chairman, Sese Village on Kayenze – Kisesa road, Magu District

LBT road works created jobs for the people and boosted their income, even though this was temporary. Yes, the people prefer LBT to EBT, and they are willing to participate in the maintenance of the road, but they need to be organized.

Luchiba Maduka Chairman, Mwanchimwa Village, Kigangama, Magu District

04/11/2003

Samuel Mathias Pastor, Pentecostal Church of God, Kigangama Ward, Magu District

The Lugeye – Kigangama road was rehabilitated by LBT and most of the labour came from Lugeye village. The people of Kigangama did not participate as most of them are involved in fishing, which gives them better income. Improvement of the road has led to economic boom as many vehicles now come to fetch fish. The population of Kigangama has increased from 120 to 270 homesteads during the past 2 years, and new shops and guest houses have been built.


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04/11/2003 Pius Mazima Chairman, Ihale Beach Management Unit, Magu District

The Yitwimile – Ihale road was rehabilitated by LBT 2 years ago and this has greatly boosted the livelihood of the community at Ihale. During construction many people participated as labourers. After construction the fishing industry has expanded and many vehicles come to fetch fish. The population of Ihale village has increased from 500 to more than 2000, and many new houses (including guest houses) have been built.

05/11/2003 Magrus Mulegi Innocent Msoffe

DE, Sengerema District Council Road Technician, Sengerema District Council

LBT has been well received by the people of Sengerema and they have enthusiastically participated in the rehabilitation of several roads. They are willing to continue. Maintenance of the rehabilitated roads is planned for under the Road Fund.

05/11/2003 Libeli H. Kasankara Buchanagandi Toto

Chairman, Beach Management Unit, Chifunfu Village, Sengerema District Secretary, Beach Management Unit, Chifunfu Village, Sengerema District

The Nyamahona – Chifunfu road (17.5km) was rehabilitated by LBT. About 100 people from the village participated in the project. Participation of women was low – less than 20%. For the community LBT has been accepted as something good because it gives people income. The roads done by LBT appear to be more durable. As a result of the road, the fish industry has expanded tremendously.


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06/11/2003 J.A. Simbeye J.J. Matabhi J.N. Bukombe

DED, Geita District Council District Engineer, Geita District Council Civil Technician, Geita District Council

LBT has been positively received by the people of Geita District, not only because of the contribution it has made to the income of the rural communities, but also because of the skills development of the people. There is also a sense of ownership of the road by the community, and in certain cases where maintenance is delayed the people take the initiative to remind the administration on the need for timely maintenance.

06/11/2003 Constantine Yohana Lugwisha (plus 3 other colleagues)

Petty Trader at Bugalama village, Geita Districts (operates a “mgahawa” or restaurant).

Worked on the LBT project for 3 months to supplement his income. Was working 6 days per week and getting paid TSh. 1,200/= per day. Was able to build a 3-roomed house with corrugated iron sheets roof. Hence he greatly supports LBT in favour of EBT because it contributes to poverty reduction.

7/11/2003 Stephen Kasoga Regional Planning Officer, Mwanza Region (on behalf of RAS)

Appreciated the decision of MOW to carry out impact survey of LBT and to include the UNCDF project on the itinerary. Underscored the need for RAS, and his team dealing with the DFR, to get copy of the draft report before it is finalized.


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APPENDIX VI: PHOTOGRAPHS OF SELECT EBT & LBT ROADWORKS

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