Portuguese construction company Mota-Engil SGPS SA and Turkish builder Yapi Merkezi Insaat VE Sanayi As will bid for more railway projects in Tanzania after winning a $1.2 billion contract in the East African country, Bloomberg reports today.
The government has budgeted 1 trillion shillings ($447 million) in the fiscal year through June to help fund the railways and will raise loans for the remaining financing, Mbarawa, Minister of Works, Transport and Communication of Tanzania, told reporters at the signing ceremony. Mota and Yapi, which submitted a joint proposal for the contract, was awarded the deal because it was the only bid received, he said. Following him, forty companies had put in a request for tender documents but only one company returned the documents.
Yapi and Mota own 50 percent each of the group that was awarded the contract.
Work on the projects is expected to start in the next six weeks and complete in about 30 months.