Tanzania Telecommunication Company Limited (TTCL) yesterday signed a Sh9.7 billion ($6.03 million) contract with the Universal Communication Service Access Fund (UCSAF) to supply communication services in rural areas.
The project to be completed in eight months will see 202 villages across the country with an estimated 300,000 people benefit.
The contract was signed between the Fund’s Chief
Executive Officer, Peter Ulanga and TTCL acting Chief Executive Officer,
Peter Ngota. The fund was made available through the World Bank.
Prof Makame Mbarawa, the minister for
Communication, Science and Technology, witnessed the signing of the
deal. He said TTCL was awarded the works after mobile companies which
had shown interest withdrew following a standoff on the SIM card tax.
According to Prof Mbarwa, the initial plan before
the four mobile companies withdrew was to reach 1.3 million people in
968 villages at a cost of Sh22.880 billion ($14.3 million).
He however said the government, through the UCSAF,
is currently reviewing the plan with a view to float a fresh tender.
The minister said results for 758 villages with 610,000 beneficiaries
will be out soon. Some at Sh16bn ($6.03 million) will be used.
Mr Ngota assured the government value for money
from the project. “Based on how TTCL implemented well all projects in
phase I, we will continue to perform better because we have enough human
resources to oversee the implementation of the projects.”
Mr Ulanga said the successful rollout of the
project will promote social-economic development in the underserved
rural and urban areas. He said already the fund invested Sh9.3bn to
cover 316 villages.
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