Hassan Magulumali
The Tanzanian government has directed officials to initiate legal procedures to terminate a contractor’s agreement for the construction of the Ichemba Dam in Ulyankulu Constituency, Kaliua District, Tabora Region, after the project recorded only 12 percent progress in two years despite government funding.
Deputy Minister for Water, Engineer Kundo Andrea Mathew, issued the directive while addressing residents of Ichemba Village after inspecting the dam construction site, expressing concern over the slow pace of implementation of a project expected to improve water access for thousands of people.
The government has instructed the project manager to follow the required legal procedures for terminating the contract and ensuring that any funds found to be recoverable are protected and returned in accordance with the law and the terms of the agreement.
“I direct the Project Manager to follow the legal procedures for terminating the contract and take measures to ensure that any funds determined to be refundable are safeguarded and recovered in accordance with the law and the contractual terms,” Engineer Kundo said.
The directive signals a tougher government response to delays in public infrastructure projects, particularly those involving essential services such as water supply, where prolonged construction can leave communities waiting for promised improvements despite the allocation of public funds.
The Ichemba Dam project is being implemented by M/S Palemon Construction Ltd under a contract valued at Sh3.38 billion. However, the project has achieved only 12 percent completion over the past two years, raising concerns about the contractor’s performance and the effective use of government resources.
According to the project details provided, the government has already paid the contractor Sh507.5 million as an advance payment. The planned legal process is expected to establish the appropriate contractual remedies and determine whether any portion of the funds must be recovered.
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The government’s position highlights the importance of enforcing contractual obligations in publicly funded projects. Under applicable procurement rules and the terms of the contract, any termination and recovery process must follow the prescribed procedures, including an assessment of the contractor’s performance, payments made and obligations that remain outstanding.
The case also underscores the financial risks associated with delayed infrastructure projects. When construction falls significantly behind schedule, the government may face additional costs associated with contract termination, procurement of a replacement contractor and completion of unfinished works.
For communities awaiting improved water services, such delays can also postpone the anticipated social and economic benefits of infrastructure investment. The government will therefore need to ensure that any contractual action is followed by a clear plan for resuming and completing the project.
Once completed, the Ichemba Dam is expected to serve approximately 143,895 residents across nine wards in Ulyankulu Constituency. The project is intended to strengthen water availability in the area, making its timely completion important for households and other water users.
Access to reliable water remains a key development priority in Tanzania, particularly in communities where existing sources may not adequately meet local demand. Dam infrastructure can help improve water storage and supply, although the actual benefits depend on the completion of construction and the availability of the necessary distribution and water-delivery systems.
The government’s latest directive places the Ichemba Dam project at a critical stage, with legal procedures now expected to determine the future of the existing contract and the handling of public funds already disbursed.
The next major challenge will be ensuring that the stalled project does not remain incomplete while residents continue waiting for the services it was designed to provide.
No revised completion schedule or details of a possible replacement contractor were provided in the information released about the directive.
