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The soaring costs of BoT Twin Towers
By ThisDay Reporter
25th May 2010

CONSTRUCTION costs at the Bank of Tanzania's (BoT) headquarters in Dar es Salaam are expected to rise even further following the undertaking of new multi-billion shilling renovation works and equipment upgrade at the infamous Twin Towers offices.

While the true costs of the hugely controversial BoT Twin Towers project remain shrouded in mystery, the central bank is now commissioning fresh construction tenders at its headquarters.

In a multi-billion shilling contract, the central bank closed bids in February for a major refurbishment of the middle wing building at its head offices in Dar es Salaam.

"Following the completion of the extension of the BoT 10 Mirambo headquarters project ... it is therefore considered necessary to refurbish the old Middle Wing building to match the other surrounding buildings," said part of the tender document.

The central bank said it wants the middle wing building refurbished so that it resembles the state-of-the-art grandeur of the Twin Towers project in "nearly every aspect possible."

These include modern facilities such as the "building fabric, mechanical, electrical and electronics systems complemented with security, fire protection and suppression systems," said the tender document seen by THISDAY.

"The essence of synchronizing the building complex system is to manage and maintain the whole complex with shared infrastructure for business continuity and security reasons," said the BoT.

"Over and above, the refurbishment of the middle wing building should provide similar architectural aesthetic impact as that of the extension (Twin Towers) building complex project."

In another tender, the BoT invited bids for the "supply and installation of urinal sensor flusher(s) in male toilets" at the Twin Towers building and the central bank's Zanzibar offices at Gulioni area.

The deadline for submission of bids for the contract is next month.

The resplendent BoT Twin Towers complex currently boasts the south tower, north tower, north block, car part and an ultra-modern conference center, which hosted a high-level International Monetary Fund IMF-Africa conference in March last year.

According to BoT's 2006/07 accounts, the Twin Towers construction project, which also involves the Zanzibar Gulioni offices, was at that time valued at $332 million for insurance purposes.

However, the original construction cost estimate for the project was just $89.05 million.

Government officials say apart from the refurbishment work, the BoT has also recently awarded potentially multi-billion shilling contracts on its headquarters' building.

These include supply of communication and security equipment, office furniture and various other equipment.

The Twin Towers extension project has generated considerable controversy with experts saying the construction costs were inflated by at least four times the value of similar property in some of the world’s most expensive cities like London, New York and Tokyo.

The building's construction cost is the subject of an ongoing graft investigation by the Prevention and Combating of Corruption Bureau (PCCB), which has already led to the prosecution of a senior ex-BoT official.

The central bank's Board of Directors has ordered a "value for money" audit of the Twin Towers to establish exactly why the project costs went sky high.
 

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