SONGWE AIRPORT: Time wasted is money going down the drain.

Byase Luteke (Business Times):
What is supposed to be Tanzania Mainland’s fourth international
airport is yet to materialize more than ten years since it started!
The Songwe International Airport project construction was initially
started in 2001 in line with the government initiative to improve
efficiency and safety of air transport in the country. Tanzania
Mainland already boasts of three vibrant international airports-
Julius Nyerere International Airport (JNIA), Kilimanjaro International
Airport (KIA) and Mwanza International Airport. Apart from conforming
to the International Civil Aviation Organization (ICAO) standards an
international airport is basically an entry and exit point of the
country. This implies that such airport should have immigration and
customs departments to essentially facilitate movements of foreign
passengers and goods. Songwe Airport is geared to play that important
role.

However, what is raising eyebrows is the duration it is taking to
bring this project to fruition. It was reported in January 2009 that
the airport located in the Southern Highland of Mbeya region would
open “later that year (2009)” but more than two years down the road
the project is still a “work-in-progress”, if you will. At one point
it was reported that the government was fed up with the shoddy work
and the slow pace of construction and to this effect issued an
ultimatum to the contractor to complete the project but apparently
this seems to have been hot air. This begs a question; was the
government serious in issuing that petition? If yes, why is the
project still stalling as we enter the third year of waiting (and
still counting) with no plausible explanation forthcoming?

With a reportedly over $20 million inclusive of 4.62 million loan
funding from the OPEC Fund for International Development spent so far,
when completed Songwe Airport will have a 3,300 meter runway capable
of handling a B737 aircraft and the like, extensive baggage handling
system and state-of-the-art meteorology and communication facilities.
Hopefully the airport will also include other facilities such as the
good restaurants and foreign exchange bureaus.

Any economist will tell you that a feasibility study for a commercial
project like an airport normally indicates the cost-benefits analysis
for the same. This elaborates the timeframe and the cost involved to
complete the project, what kind of benefits will accrue thereof, the
payback period for the investment, loans repayment schedules, etc. In
this case any prolonged delay like it has been the case with this
airport will obviously escalate the costs of construction, postpone
the perceived benefits and elongate the payback period. In other words
Songwe Airport viability could be at stake. This airport facility is
supposed to be an important addition to the country in so far as
attracting top notch investors and boosting of the national economy is
concerned.

Though located in Mbeya region the airport is not important for that
region alone. “It is also important for Rukwa Region where it will
help the livestock keepers/traders and neighbouring countries such as
the Democratic Republic of Congo (DRC),” Prime Minister, Mizengo Pinda
told the East African Newspaper in 2009. This facility will become
handy to potential heavy cargo shippers such Tanzania Breweries and
Tembo Cement which operate heavy Industries in Mbeya town. At the
moment these companies transport their heavy cargo by trucking which
is time consuming and expensive. For instance, Like Mtwara Airport
Songwe will be able to handle Astral Aviation’s DC9 cargo aircraft.
Astral aviation is a Kenya based cargo airline which is actively
involved in cargo operations in the East and Central African region.

Once operational the airport will become an important gateway for
agricultural and horticultural exports. The so called big four regions
of Iringa, Mbeya, Ruvuma and Rukwa are renown for agricultural and
horticultural farming. For instance, fresh flowers exporters from
Iringa and its environs (such as Makete) are currently trucking their
exports to Dar es Salaam for online connections on KLM and other
international airlines to the flower markets in Europe. Now with
Songwe Airport within proximity it will be possible to airfreight
products from Songwe to either Dar es Salaam or Nairobi for onward
connection. Meat exporters in Rukwa will also find it easy to truck
their exports to nearby Songwe Airport and airfreight them directly to
the Middle East by charter aircraft such as the B737 or DC9s.

There is also a strategic dimension to Songwe Airport. The airport can
also become handy in case of disaster operations as well as defense
purposes for the Southern Highland region. Its capability to handle
big aircraft will increase the country’s capacity to respond fairly
quickly and effectively in case of disaster and defense scares.

Last but not least the opening of this airport will not only enable
other airlines operating relatively bigger aircraft such as Air
Tanzania and Precision Air to venture into the Mbeya market but will
also bring down the airfares currently obtaining in this market. For
example, Auric Air is currently charging $295 for one-way travel (or
$590 for a return flight) from Dar es Salaam to Mbeya which quite
beyond the means of many would-be travelers. The same fare is enough
to fly you from Dar es Salaam to Dubai and return on Ethiopian
Airlines. There’s no way such high fares can spur traffic growth. New
entrants will obviously introduce competitive and pocket-friendly
fares which will help to increase passengers and subsequently more
visitors to the area. The study also envisaged an increase in light
aircraft movements once the airport is fully functional.

Perhaps we should borrow the wisdom from the Swahili adage which says
that once you undress for a bath or shower you cannot chicken out
simply because the water is too warm or too cold. You have to look for
a solution to ensure that you bathe and not otherwise. In this regard
the government has already spent a lot of money on Songwe Airport
project and cannot back out at this late hour in the day. All efforts
must be made to make sure that there are no more delays so that the
airport can play its socio-economic role it is designed to do. At this
point it doesn’t matter how much more is spent because abandoning it
can’t be a logical option. If the delays are a result of the
underperforming contractor let the penalty clause in the contract take
its course so that he/she can face the music accordingly. But also not
completing the project more than a decade since it started due to lack
of adequate funding is a reflection of lack of seriousness and
foresight by government planners.

What I am trying to put across is that the government should stop
dilly dallying and clearly come out with the cut-off date that is
binding to all parties involved in this project. To continue delaying
this project is to postpone the benefits that should have accrued
yesterday. Economists call it the opportunity cost- what you lose by
not utilizing an asset. What is my point? Time wasted is money going
down the drain.