BY DAVID CHIKOKO
Information, Culture, Arts and Sports Minister Paul Makonda has defended the increase in construction costs for Arusha’s AFCON 2027 stadium, attributing it to taxes and revised requirements to meet international football standards.
Speaking in Parliament in Dodoma on November 4, Makonda rejected allegations of financial impropriety, saying changes to the project reflected requirements set by the Confederation of African Football (CAF). He said approximately Sh52 billion of the contract value comprised taxes.
His response followed questions from Kigoma Mjini MP Clayton Revocatus Chipando, popularly known as Baba Levo, who challenged the stadium’s approximately Sh338 billion price tag and the procurement method used to select the contractor.
Chipando compared the project with Benjamin Mkapa Stadium in Dar es Salaam, citing approximately Sh63 billion as its construction cost despite its larger spectator capacity. He also requested a detailed breakdown of the Arusha project’s costs.
The Controller and Auditor General’s report on development projects for the 2024/25 financial year recorded an initial estimate of Sh187 billion in the ministry’s 2023/24 procurement plan. However, the contract signed on March 19, 2024, was worth Sh338.54 billion, including VAT.
The difference of Sh151.54 billion represented an increase of approximately 81 per cent. The audit said the variation indicated unrealistic initial estimates and noted that the contractor had been selected through single-source procurement on grounds of urgency without sufficient supporting evidence.
Makonda maintained that procurement regulations allowed the method used. He also rejected direct comparisons with Benjamin Mkapa Stadium, saying differences in construction periods, infrastructure and the requirements for hosting AFCON needed to be considered.
The approximately Sh52 billion in taxes cited by the minister accounts for part of the Sh151.54 billion difference between the estimate and contract value. A further breakdown would be needed to establish how much of the remaining approximately Sh99.54 billion is related to revised requirements and other costs.
