Overview
The Tanzanian government is developing the Dar es Salaam Bus Rapid Transit (DART) system to connect the suburbs of Dar es Salaam to its central business district, providing residents with access to high-quality public transport services.
As a six-phase project, DART is the largest integrated BRT network currently being implemented in sub-Saharan Africa. The system is the cornerstone of the city’s urban public transport strategy for the coming decades, providing mobility and connectivity for millions of people and underpinning strong growth in one of Africa’s major economic hubs.
Pegasys and its partners were appointed to assist in the implementation and operationalisation of Phases 3 and 4 of the system, with the support covering all the necessary facets – from technical and legal to institutional, organisation, economic, financial and transactional.
Phase 3, consisting of 24km of dedicated trunk way, runs predominantly along the busy Nyerere Road from Gongo la Mboto past the airport to the City Centre. Phase 4, with around 26km of dedicated bus lanes, mainly covers Bagamoyo Road running north from the CBD.
The Challenges
There are a variety of technical challenges Pegasys’s solution must overcome to optimise DART Phases 3 and 4. The most significant include:
- Implementing a high-quality and affordable, but financially sustainable service. Dar es Salaam is undergoing significant urbanisation, with commensurate growth in demand for public transport. A lack of service, coupled with an inability by much of the population to afford existing offerings, highlight the challenges faced by the Dar es Salaam BRT. The system must provide a high-quality and inexpensive service to more than six million people in the city. At the same time, the costs of providing the service must be sustainably funded.
- Managing Dar es Salaam’s established informal public transport industry. A fleet of up to 9 000 dala-dala minibus taxis dominate the current motorised public transport market in Dar es Salaam. The business is supported by, and co-exists with, an underlying ecosystem of drivers, conductors, mechanics, and vendors that make up a thriving informal industry. The challenges of attracting ridership from this captive market, as well as ensuring socioeconomic livelihoods are maintained with the rollout of DART, are vital to address.
- Attracting the right mix of local and international expertise and capital. The Government of Tanzania seeks collaboration with private partners to implement DART. Such public-private partnership aims to leverage the combined resources and expertise of all parties to operate the system most effectively and sustainably. However, pioneering such an approach also involves risks. It is critical that the right partnership structures and contracting mechanisms are developed to attract and retain appropriate private participation – locally and internationally.
The Solution
DART seeks to provide current and future residents of Dar es Salaam with a high-quality, safe, accessible, affordable, sustainable, and integrated public transport service. Construction of Phase 1 was completed in December 2015 at a total cost of €134 million, funded by the World Bank and Government of Tanzania. Operations on Phase 1 began in 2016. Design and construction of future phases are in various stages of completion.
Pegasys’s work centres on the implementation of public-private partnerships for effective implementation and operation of DART Phases 3 and 4. This includes:
- Undertaking a comprehensive technical, financial, economic, and commercial feasibility assessment of the proposed phases.
- Reviewing the system architecture and updating the business plan, including constructing the necessary financial models and finalising the approach to fare collection and funds management.
- Developing a robust transaction structure for the proposed PPPs, including the optimal contracting approach, mechanisms, and risk-share arrangements.
- Designing a practical strategy for integration of existing public transport operators, including the paratransit dala-dala industry, into the new BRT system.
- Undertaking market assessment, sounding, and roadshow exercises, and assisting with the PPP procurement process.
- Supporting negotiations and facilitating the PPP financial and commercial close.
We've been closely involved with a number of similar systems, and we ensure the lessons learned elsewhere on the African continent are propagated into our subsequent work. We are cognisant that local context and on-the-ground nuance matter – solutions must reflect the environment in which they are implemented. Ultimately, BRT systems will underpin the urban fabric of African cities for decades to come…it is critical we get it right.
Nicholas Leitner, Managing Principal
Results
Pegasys came on board in 2020, and the project is still in its early stages. Many of the challenges are familiar to the Pegasys team, based on experiences in numerous BRT projects in other geographies. Ultimately, Pegasys will assist our client with the successful implementation of DART Phases 3 and 4 operations, carrying over 1.3 million people per day across Dar es Salaam.
