THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION

THE UNITED REPUBLIC OF TANZANIA MINISTRY OF WORKS, TRANSPORT AND COMMUNICATION TANZANIA ELECTRICAL, MECHANICAL AND ELECTRONICS SERVICES AGENCY (TEMESA) TEMESA PERFORMANCE REPORT FOR THE PERIOD OF JULY, 2016 - JUNE, Prepared by: The Chief Executive, TEMESA, P. O. Box 70704, DAR ES SALAAM. 1

PAGE 1.0 INTRODUCTION... 1 2.0 PERFORMANCE OF THE AGENCY... 4 2.1 Summary of Revenue Realized... 4 2.2 Summary of Revenue Collected... 7 2.3 Summary of Expenditure... 11 3.0 DEPARTMENTAL PERFORMANCE... 12 3.1 Production and Maintanance Works Division... 12 3.2 Technical Advice and Consultancy Division... 16 3.3 Equipment Hire And Ferry Services Division... 18 3.3.1 Equipment Hire...18 3.3.2 Ferry Services... 19 3.4 Business Support Services Division... 28 4.0 RECURRENT BUDGET PHYSICAL PERFORMANCE... 29 5.0 CHALLENGES/PROBLEMS EXPERIENCED IN THE ANNUAL PERFORMANCE FOR FY 2016/17 29 6.0 APPENDICES... 30 2

TEMESA PERFORMANCE REVIEW REPORT FOR THE PERIOD OF JULY, 2016 JUNE, 1.0 INTRODUCTION 1.1 During the financial year 2016/17, TEMESA projected to realize total revenue amounting to Tshs. 65,724,541,246.00 of which Tshs. 38,144,815,746.00 was from its own sources and the remaining Tshs. 27,579,725,500.00 was from Government subvention. Table1 gives the details of estimated revenue generation during FY 2016/17: Table 1: Estimated TEMESA Revenue Realization for FY 2016/17: S/No. Source of Revenue Estimated Revenue FY 2016/17 1 Mechanical Services 13,193,567,076.00 2 Electrical Services 3,318,191,840.00 3 Electronics Services 362,050,020.00 4 Refrigeration and A/C Services 738,540,800.00 5 Technical Advices 105,000,000.00 6 Consultancy Services 1,099,914,000.00 7 Ferry Services 16,390,181,510.00 8 Regional Equipment Hire Services 2,422,530,500.00 9 GTA 467,000,000.00 10 Other Income (BSS) 47,840,000.00 Subtotal TEMESA Own Sources 38,144,815,746.00 11 Personal Emoluments 7,580,695,500.00 12 Development Funds 19,999,030,000.00 Subtotal Government Subvention 27,579,725,500.00 Grand Total 65,724,541,246.00 1.2 In Financial Year 2016/17, TEMESA expected to spend Tshs. 65,724,541,246.00 whereby Tshs. 40,673,472,146.00 was for recurrent expenditure and Tshs. 25,051,069,100.00 for Development Expenditure for rehabilitation of workshops, procurement of ferries, construction of ramps, etc. Table 2 and 3 detail expenditure for the FY 2016/17 as follows: 3

Table 2: Estimated Recurrent Expenditure for FY 2016/17 S/No. Division Planned Expenditure per Year 1 Production and Maintenance Works 476,481,725.00 2 Technical Advice and Consultancy Services 400,681,214.00 3 Equipment Hire and Ferry Services 1,553,383,711.00 4 Business Support Services 2,555,240,828.00 5 Chief Executive 61,963,070 Sub Total TEMESA Headquarters 5,047,750,548.00 6 Regions and Service Centres 28,045,026,098.00 7 Salaries for Permanent Staff 7,580,695,500.00 GRAND TOTAL 40,673,472,146.00 S/No 1 2 3 4 5 6 7 Table 3: Development Expenditure Estimates for FY 2016/17 Name of Project To construct 3 out of 7 ferry ramps between Magogoni (Dar es Salaam) - Bagamoyo (Pwani) by June,. To carry out expansion of Kigamboni ferry terminal side by June, To construct Bwina ramp for Chato - Nkome crossing by June, To construct Lindi - Kitunda ferry ramps by June, To procure one (1) ferry (250 tons) to ply between Magogoni Kigamboni crossing by June,. To procure one ferry to ply between Kigongo - Busisi crossing by June,. To Procure three Fibre Boats for Pangani - Bweni, MsangaMkuu - Msemo, Kilambonamoto and Utete - Mkongo by June. Annual Budget Estimates FY 2016/17 Financer 7,041,190,000 Government 2,702,000,000.00 Government 108,240,000.00 Government 1,200,000,000.00 Government 3,000,000,000.00 Government 2,500,000,000.00 Government 300,000,000.00 Government 8 To complete rehabilitation of MV. Pangani by June,. 140,960,000.00 Government 9 To complete rehabilitation of MV. Sengerema by June,. 250,000,000.00 Government 10 To procure tools for workshop by June, 230,000,000.00 Government 11 Monitoring and evaluation of Ferries activities by June. 68,800,000.00 Government 12 To procure 1 new ferry to ply between Pangani and Bweni crossing by June,. 1,267,750,000.00 Road fund 14 Maintenance and repair of 23 ferries by June,. 1,000,000,000.00 Road fund 15 Rehabilitation of DSM - Vingunguti Workshop Phase I 190,090,000.00 Government Sub Total 19,999,030,000.00 Government 4

B: Development projects funded by TEMESA Own sources 16 17 18 Re-tooling of Mwanza, Singida and MT Depot Workshops with Modern Tools Rehabilitation of MT Depot phase II and Dodoma workshops Rehabilitation of DSM - Vingunguti Workshop Phase I 100,000,000.00 TEMESA 70,000,000.00 TEMESA 600,000,000.00 TEMESA 19 Rehabilitation of MT Depot Workshop Phase III 1,000,000,000.00 TEMESA 20 Construction of wall fence (Kigoma and Kilimanjaro Workshops) 24,550,000.00 TEMESA 21 Construction of Manyara workshop 64,460,000.00 TEMESA 22 23 24 25 26 27 28 To Procure three Fibre Boats for Pangani, MsangaMkuu and Kilambo by June. Rehabilitation of Kilombero ferry ramp(ulanga side)by June Construction of Pangani Ferry Building by June upgrade automated vending machines at Magogoni Kigamboni and install at Rugezi Kisorya and Pangani Bweni crossing by June, Strengthen revenue collections from TEMEKE yard by June Procure one new Equipment and Plant by June Maintenance and repair of all ferries by June, 180,000,000.00 TEMESA 130,000,000.00 TEMESA 90,000,000.00 TEMESA 1,757,713,000.00 TEMESA 250,000,000.00 TEMESA 577,906,100.00 TEMESA 207,410,000.00 TEMESA Sub Total ( TEMESA Own Source) 5,052,039,100.00 TEMESA GRAND TOTAL 25,051,069,100.00 5

2.0 PERFORMANCE OF THE AGENCY FOR THE PERIOD OF JULY, 2016 JUNE, 2.1 SUMMARY OF REVENUE REALIZED FOR THE PERIOD OF JULY, 2016 TO JUNE, In the period of July, 2016 to June, in FY 2016/17, TEMESA managed to generate a total amount of Tshs 54,565,239,149.00 which is 83% of the annual target of Tshs 65,724,541,246.00. Generation from its own sources is Tshs 40,726,256,113.00 which is 107% of the annual target of Tshs 38,144,815,746.00, while from Government subvention is Tshs 13,838,983,035.00 equal to 50% against an annual target of Tshs 27,579,725,500.00. Table 4, 5, 6 and 7 contains the details of revenue realized. S/No. Table 4 Summary of planned revenue generation for the period of July, 2016 June, Source of Revenue Planned Revenue for FY 2016/ Revenue Generated Variance Achieve ment in % 1 Repair and maintenance of Vehicles 13,193,567,076 20,367,504,886 7,173,937,810 154 2 Electrical works 3,318,191,840 2,749,733,483 (568,458,357) 83 3 Electronics works 362,050,020 490,845,171 128,795,151 136 4 5 Refrigeration and Air Conditioning Production and Maintenance Works Technical advice and consultancy service 738,540,800 1,120,559,905 382,019,105 152 17,612,349,736 24,728,643,445 7,116,293,709 140 1,204,914,000 846,349,987 (358,564,013) 70 6 Equipment hire services 2,889,530,500 1,574,053,118 (1,315,477,382) 54 7 Provision of Ferry services 16,390,181,510 13,515,303,458 (2,874,878,052) 82 8 Business support services 47,840,000 61,906,105 14,066,105 129 Sub total (own sources) 38,144,815,746 40,726,256,113 2,581,440,367 107 9 Personal Emolument 7,580,695,500 7,216,212,335 (364,483,165) 95 10 Development Funds 19,999,030,000 6,622,770,700 (13,376,259,300) 33 Sub Total (Government subvention) 27,579,725,500 13,838,983,035 (13,740,742,465) 50 Grand Total 65,724,541,246 54,565,239,149 (11,159,302,097) 83 6

Table 5 Summary of planned Workshop works revenue generation per Region for the period of July, 2016 June, S/No. Region Planned Revenue For FY 2016/ Revenue Generated Variance Achieve ment in % 1 Arusha 688,300,000 1,781,013,164 1,092,713,164 259 2 Njombe 177,939,090 452,672,420 274,733,330 254 3 Shinyanga 385,160,000 904,851,198 519,691,198 235 4 Iringa 419,780,000 955,651,649 535,871,649 228 5 Mwanza 487,400,000 936,812,158 449,412,158 192 6 DSM ( M. T. Depot) 2,193,050,000 4,207,068,877 2,014,018,877 192 7 Katavi 136,669,000 255,375,619 118,706,619 187 8 Mbeya 682,186,664 1,237,466,888 555,280,224 181 9 Dodoma 1,103,620,000 1,943,583,466 839,963,466 176 10 Manyara 402,570,000 660,180,850 257,610,850 164 11 Rukwa 362,278,000 578,512,919 216,234,919 160 12 Kilimanjaro 515,693,600 730,651,809 214,958,209 142 13 Kigoma 426,305,000 588,070,682 161,765,682 138 14 Geita 257,629,400 353,891,195 96,261,795 137 15 Pwani 803,400,000 947,147,276 143,747,276 118 16 Mara 499,583,800 585,870,028 86,286,228 117 17 Ruvuma 454,273,506 527,268,973 72,995,467 116 18 Lindi 332,800,000 376,344,372 43,544,372 113 19 Tanga 553,800,000 604,914,000 51,114,000 109 20 Tabora 550,345,000 598,545,977 48,200,977 109 21 Kagera 709,552,806 720,728,719 11,175,913 102 22 Corp. Sole (EMCS) 1,919,440,020 1,923,116,442 3,676,422 100 23 Simiyu 289,080,000 286,473,878 (2,606,122) 99 24 Mtwara 395,634,700 380,639,087 (14,995,613) 96 25 Morogoro 644,231,650 514,150,502 (130,081,148) 80 26 Singida 363,917,500 282,383,827 (81,533,673) 78 27 D'salaam (Vingunguti) 1,857,710,000 1,395,257,472 (462,452,528) 75 Grand Total 17,612,349,736 24,728,643,445 7,116,293,709 140 7

S/No. Table 6 Summary of planned Ferry Services Revenue generation per Region for the period of July, 2016 June, Region Planned Revenue For FY 2016/ Revenue Generated Variance Achieve ment in % 1 Kigoma 160,000,000 197,108,632 37,108,632 123 3 Mwanza 6,243,526,800 6,286,678,469 43,151,669 101 2 Tanga 333,214,800 322,936,866 (10,277,934) 97 5 Mara 327,786,000 280,876,600 (46,909,400) 86 6 Mtwara 255,041,300 212,112,560 (42,928,740) 83 7 Kagera 109,254,000 88,588,299 (20,665,701) 81 8 DSM (Magogoni) 7,856,442,810 5,480,616,498 (2,375,826,312) 70 4 Morogoro 1,102,911,000 646,385,534 (456,525,466) 59 9 Ruvuma 2,004,800 0 (2,004,800) 0 10 Pwani 0 0 0 0 Grand Total 16,390,181,510 13,515,303,458 (2,874,878,052) 82 S/No. Table 7 Summary of planned Equipment Hiring Services Revenue generation per Region for the period of July, 2016 June, Region Planned Revenue for FY 2016/ Revenue Generated Variance Achieve ment in % 1 Arusha 10,000,000 42,832,000 32,832,000 428 2 Pwani 28,800,000 122,938,000 94,138,000 427 3 Iringa 7,800,000 11,291,576 3,491,576 145 4 Kagera 50,400,000 60,775,380 10,375,380 121 5 Tabora 48,000,000 53,272,600 5,272,600 111 6 Mtwara 7,200,000 5,450,000 (1,750,000) 76 7 Kigoma 24,000,000 16,810,000 (7,190,000) 70 11 Morogoro 550,480,000 348,149,840 (202,330,160) 63 13 Mwanza 33,000,000 18,364,000 (14,636,000) 56 9 Tanga 509,400,500 275,725,000 (233,675,500) 54 12 DSM GTA 467,000,000 223,953,500 (243,046,500) 48 8 Mbeya 642,000,000 301,444,679 (340,555,321) 47 10 Dodoma 25,000,000 11,400,000 (13,600,000) 46 14 Shinyanga 48,000,000 20,308,000 (27,692,000) 42 15 Katavi 11,400,000 3,000,000 (8,400,000) 26 16 Geita 110,000,000 19,280,543 (90,719,457) 18 18 Manyara 156,000,000 25,850,000 (130,150,000) 17 17 Lindi 114,250,000 13,208,000 (101,042,000) 12 19 Rukwa 46,800,000 0 (46,800,000) 0 Total 2,889,530,500 1,574,053,118 (1,315,477,382) 54 8

2.2 SUMMARY OF REVENUE COLLECTION FOR THE PERIOD OF JULY, 2016 JUNE, 2.2.1 Collections from Revenue Generated In the period of July, 2016 to June, TEMESA managed to generate a total amount of 40,726,256,113.00 and collected 34,132,707,878.00 which is 83%. For the details of the revenue collections are given in Table No. 8 & 9 bellow. Table No. 8 Departmental revenue collection for the period of July, 2016 to June, Sub Vote Description of Item Generated Revenue Cash collection % Achieved B01 Business Support Services 61,906,105 61,906,105 100 C01 Technical Advice and Consultancy services 846,349,987 273,218,949 32 F01 Equipment Hire Services 1,574,053,118 1,411,855,775 90 F01 Ferry Services 13,515,303,458 13,515,303,458 100 P01 Production and Maintenance Works 24,728,643,445 18,870,423,591 76 GRAND TOTAL 40,726,256,113 34,132,707,878 83 9

Table No. 9 Region/Centre revenue collection for the period of July, 2016 to June, S/No. Region Generated Revenue Cash collection Achievement in % 1 Arusha 1,781,013,164 1,748,819,000 98 2 Lindi 376,344,372 362,050,600 96 3 Singida 282,383,827 266,218,546 94 4 Kilimanjaro 730,651,809 659,733,044 90 5 Mara 585,870,028 522,015,456 89 6 Tabora 598,545,977 532,041,747 89 7 Manyara 660,180,850 581,156,304 88 8 Corp. Sole (EMCS) 1,923,116,442 1,655,874,008 86 9 Ruvuma 527,268,973 452,648,371 86 10 Iringa 955,651,649 815,291,817 85 11 Katavi 255,375,619 204,885,372 80 12 Tanga 604,914,000 472,525,381 78 13 Njombe 452,672,420 353,066,260 78 14 Mwanza 936,812,158 729,507,140 78 15 Kigoma 588,070,682 450,104,058 77 16 Mtwara 380,639,087 287,962,366 76 17 DSM ( M. T. Depot) 4,207,068,877 2,944,364,217 70 18 Morogoro 514,150,502 359,134,867 70 19 Shinyanga 904,851,198 630,573,265 70 20 Rukwa 578,512,919 402,602,007 70 21 Geita 353,891,195 246,073,086 70 22 Kagera 720,728,719 483,884,825 67 23 Dodoma 1,943,583,466 1,293,471,858 67 24 Mbeya 1,237,466,888 792,031,226 64 25 Pwani 947,147,276 599,287,696 63 26 Simiyu 286,473,878 177,569,421 62 27 D'salaam (Vingunguti) 1,395,257,472 847,531,653 61 Grand Total 24,728,643,445 18,870,423,591 76 10

2.2.2 Collections from Debtors TEMESA as at 30 th June, 2016 has a total amount of Debtors of Tshs 10,048,527,911.00, whereby only Tshs 4,104,988,937.00 equal to 41% collected against the total debt, this debt collection detailed below: Table No. 10: Region/Centre Debtors collection for the period of July, 2016 to June, S/No. Region/Center Debtors as at 30 th June, 2016 Debtors collected Achievement in % 1 Pwani 72,867,321 381,433,672 523 1 2 Mtwara 118,337,686 157,868,315 133 3 Shinyanga 60,693,136 60,693,136 100 4 Arusha 323,561,625 239,608,229 74 5 Rukwa 114,705,798 80,875,030 71 6 Mwanza 167,236,125 95,702,751 57 7 Lindi 84,067,022 46,917,034 56 8 Corp sole 739,988,569 387,986,775 52 9 GTA 166,234,560 86,495,460 52 10 Tabora 314,392,700 151,134,973 48 11 Manyara 243,913,232 111,718,665 46 12 Mbeya 638,401,822 278,996,023 44 13 Simiyu 132,873,793 57,588,310 43 14 Iringa 245,271,609 104,746,164 43 15 Mt. Depot 1,156,718,212 493,132,949 43 16 Kilimanjaro 188,756,083 79,056,985 42 17 Mara 75,097,788 31,280,014 42 18 Singida 55,804,609 22,898,206 41 19 Njombe 111,985,470 41,262,861 37 20 Kagera 434,667,810 154,287,689 35 21 Dar es salaam 820,062,082 286,246,062 35 22 Katavi 34,960,416 11,575,880 33 23 Tanga 720,950,956 232,673,703 32 24 Geita 66,422,515 21,180,158 32 25 Dodoma 551,975,266 174,962,813 32 26 Morogoro 204,933,678 56,156,910 27 27 Kigoma 190,388,378 41,736,824 22 28 Ruvuma 79,401,584 12,637,162 16 29 TEMESA HQ 1,933,858,065 204,136,184 11 Grand Total 10,048,527,911 4,104,988,937 41 1 Pwani and Mtwara have collected more than estimated debtors as they closed more from unverified debtors. 11

2.2.3 Payments for Creditors TEMESA as at 30 th June, 2016 has a total amount of Creditors of Tshs 10,677,415,419.00, whereby only Tshs 6,428,121,880.00 equal to 60% payments made against the total creditor, these creditor payments detailed below: Table No. 11: Region/Centre Creditor payments for the period of July, 2016 to June, S/No. Region/Center Creditors as at 30 th June, 2016 Amount paid for the FY 2016/17 Achievement in % 1 Mtwara 26,896,200 60,684,033 226 2 2 Pwani 309,277,306 397,678,113 129 3 Lindi 23,468,814 24,132,101 127 4 TEMESA HQ 2,181,169,085 2,181,169,085 100 5 Tabora 53,217,330 53,217,330 100 6 Shinyanga 56,130,833 53,002,401 94 7 Arusha 316,311,139 281,601,677 89 8 Magogoni Ferry 598,035,757 521,461,757 87 9 Katavi 28,244,336 24,002,420 85 10 Singida 15,746,880 12,976,880 82 11 Iringa 199,585,184 150,110,928 75 12 Rukwa 84,823,700 59,924,998 71 13 Geita 81,434,429 56,745,580 70 14 GTA 30,500,834 18,763,000 62 15 Morogoro 174,691,747 104,850,671 60 16 Manyara 309,835,521 182,189,751 59 17 Kigoma 163,134,364 92,392,518 57 18 Mbeya 283,507,634 155,060,848 55 19 Mara 56,884,798 30,953,080 54 20 Simiyu 75,323,133 34,661,548 46 21 Kilimanjaro 307,304,293 138,643,158 45 22 Ruvuma 70,907,710 30,772,720 43 23 Tanga 263,597,671 102,235,647 39 24 Mt. Depot 1,754,164,338 658,379,494 38 25 Njombe 64,984,950 22,660,716 35 26 Dodoma 481,013,127 167,622,292 35 27 Corp sole 1,096,831,982 362,915,474 33 28 Dar es salaam 1,062,969,534 316,582,868 30 29 Kagera 188,526,594 55,897,981 30 30 Mwanza 318,896,268 76,832,813 24 Grand Total 10,677,415,491 6,428,121,880 60 2 Mtwara, Pwani and Lindi have paid more than the estimated amount because they made payment to some unverified creditors. 12

2.3 SUMMARY OF EXPENDITURE FOR THE PERIOD OF JULY, 2016 - JUNE, In the period of July, 2016 to June, TEMESA spent a total of Tshs 42,653,854,350.00, which is 65% of the annual target of Tshs 65,724,541,246.00. Out of this recurrent expenditure is Tshs 33,107,883,516.00 and Tshs 5,847,727,059.00 spent on development. The Summary of Expenditure is indicated in the Table 12 below. Table 12: Summary of actual expenditure for the period of July, 2016 - June, against annual planned expenditure S/N Cost Center Planned Expenditure for FY 2016/ Annual Actual Expenditure (Tshs) % of Actual expenditure as per planned 1 2 Production and Maintenance Works(HQ) Technical Advice and Consultancy Services(HQ) 476,481,725 242,885,316 51 400,681,214 217,255,139 54 3 Equipment Hire and Ferry Services(HQ) 1,553,383,711 609,572,824 39 4 Chief Executive 61,963,070 43,384,260 70 5 Business Support Services(HQ) 2,555,240,828 1,615,308,078 63 6 Regions and Service centres 28,045,026,098 26,861,509,338 96 7 Salaries for permanent staff 7,580,695,500 7,216,212,335 95 8 Development Projects* 25,051,069,100 5,847,727,059 23 GRAND TOTAL 65,724,541,246 42,653,854,350 65 13

3.0 DEPARTMENTAL PERFORMANCE 3.1 PRODUCTION AND MAINTENANCE WORKS DIVISION: The Division of production and maintenance works planned to execute various activities in the FY 2016/17. The Division in the period under review performed its activities as follows: 3.1.2 Physical Performance for production and maintenance activities Table 13A Summary of activities/works carried out for the period of July, 2016 June, S/No. Activities Planned Jobs for FY 2016/ Actual Achievement Variance Achieve ment in % 1 Vehicle routine service and Minor Repairs 20,492 13,127 (7,365) 64 2 Vehicle major repairs 975 1253 278 129 3 Vehicles outsourced 5,783 4,886 (897) 84 4 Machine Shop Works 3,609 1,247 (2,362) 35 5 Other related works 5,154 3,311 (1,843) 64 6 New electrical installation 41 76 35 185 7 Major electrical rehabilitation 59 28 (31) 47 8 Electrical installation Public Building 300 466 166 155 9 Electrical repairs Equipment & Appliances 450 65 (385) 14 10 Electrical repair of Machines 355 137 (218) 39 11 12 Major repairs of Air conditioners refrigeration Routine services and Maintenance for Air conditioners and Refrigeration 331 79 (252) 24 4,508 1244 (3,264) 28 13 14 15 16 17 New installation of new unit of Air conditioners & Refrigeration New installation Traffic Signal controller Maintenance and repairs Traffic signal controller Routine Maintenance and repair of Street Lights Repair and maintenance of machines/appliances 181 68 (113) 38 1 3 2 0 23 65 42 283 54 165 111 306 561 49 (512) 9 14

TABLE 12B: CUMULATIVE QUARTERLY MTEF TARGET MONITORING REPORT VOTE: X8 VOTE NAME: TEMESA PERIOD COVERED: JULY, 2016 - JUNE, IN FINANCIAL YEAR: 2016/17 BUDGET COVERAGE: (DEVELOPMENT OR RECURRENT): DEVELOPMENT PROJECT CODE AND NAME: 2763 CONSTRUCTION OF GOVERNMENT HOUSES SUB-VOTE CODE AND NAME: PRODUCTION AND MAINTENANCE WORKS DIVISION OBJECTIVE CODE AND NAME: A: ENGINEERING MAINTENANCE WORKS IMPROVED CODES AND LINKAGES ANNUAL PHYSICAL TARGET CUMULATIVE STATUS ON MEETING THE PHYSICAL TARGET EXPENDITURE STATUS REMARKS ON IMPLEMENTA TION Target Code F Y D P II P R Target Description Actual progress up to 30 th June, Estimated % Completed On Track At Risk Unknown Cumulative Budget Cumulative Actual Expenditure % Spent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 D06D To carry out TBA Manyara HQ s was 0 64,460,000 0 0 construction of assigned to prepare BOQ Manyara for land scraping, workshop phase workshop, store lamps III by June, and car parking. D07D To carry out The contractor failed to 10 904,337,600 36,284,289.53 4 rehabilitation of meet the agreement. Vingunguti Termination procedures workshop phase I by June,. underway. D07D To continue with rehabilitation of Dodoma Ramps construction is going on plus finishing of the building. 50 202,200,000 122,199,998.86 60 13

workshop June, by D07D Rehabilitation of MT.Depot workshop phase III D07D To complete construction of wall fence at Kigoma and Kilimanjaro workshop by June, AO5D To re-equip Mwanza, Singida and MT. Depot workshop with modern tool by June, Contractor terminated and liquidated damages have been paid. TBA regional manager requested to submit BOQ for the works remained. 1. The Kigoma fencing project has been completed with an exception of the invaded portion yet to be decided in court of law. 2. The Kilimanjaro fencing project has been completed. Tools purchased and distributed to all production centres. 10 1,188,733,000 4,578,765.15 0 80 100 166,150,000.00 103,698,260.00 62 Awaiting court judgment 0 330,000,000 0 0 GRAND TOTAL 2,855,880,600.00 266,761,313.54 9 14

3.1.4 Financial Performance: S/N 1 Production and Maintenance Works Division in the period of July, 2016 to June, generated Tshs. 24,728,643,445.00; this is 140% of the annual target of Tshs 17,612,349,736.00 per year. Table 14 shows the details of each service provided from July, 2016 to June,. Table 14: Summary of revenue generated from production and maintenance works for the period of July, 2016 June, Activities Vehicle routine service and Minor Repairs Planned Revenue For FY 2016/ Actual Achievement 8,196,800,000 13,675,531,775 Variance 5,478,731,775 Achieve ment in % 2 Vehicle major repairs 4,387,500,000 5,723,576,571 1,336,076,571 130 3 Vehicles outsourced 346,980,000 671,363,305 324,383,305 193 4 Machine Shop Works 108,255,200 34,404,446 (73,850,754) 32 5 Other related works 154,031,876 262,628,788 108,596,912 171 6 New electrical installation 1,534,789,090 1,421,581,416 (113,207,674) 93 7 Major electrical rehabilitation 1,180,000,000 394,877,636 (785,122,364) 33 8 9 Electrical installation Public Building Electrical repairs Equipment & Appliances 167 408,000,000 526,942,685 118,942,685 129 33,900,000 93,195,339 59,295,339 275 10 Electrical repair of Machines 161,502,750 313,136,407 151,633,657 194 11 Major repairs of Air conditioners & refrigeration 151,950,000 121,686,582 (30,263,418) 80 12 13 14 15 16 Routine services and Maintenance for Air conditioners and Refrigeration New installation of new unit of Air conditioners & Refrigeration New installation Traffic Signal controller Maintenance and repairs Traffic signal controller Routine Maintenance and repair of Street Lights 225,400,000 466,085,789 240,685,789 207 361,190,800 532,787,534 171,596,734 148 80,000,000 91,623,220 11,623,220 115 92,000,000 137,180,415 45,180,415 149 162,000,000 235,810,593 73,810,593 146 17 Repair and maintenance of machines/appliances 28,050,020 26,230,944 (1,819,076) 94 Total 17,612,349,736 24,728,643,445 7,116,293,709 140 15

3.2 TECHNICAL ADVICE AND CONSULTANCY SERVICES DIVISION: 3.2.1 Physical Performance: In the period of July, 2016 to June,, the Division has managed to achieve the following:- Table 15 Summary of projects carried out for the period of July, 2016 June, S/No. 1 2 3 Activities 38 Electrical designs projects average of 204m value/project 24 Mechanical designs projects average of 184.8m value/project 28 Electronics (ICT) designs projects average of 170m value/project Planned Projects for FY 2016/ Actual Achievement 38 17 24 14 28 22 Variance (21) (10) (6) Achievement in % 45 58 79 4 Scrutinizing 4 Electrical drawings projects 4 2 (2) 50 5 Scrutinizing 4 Mechanical drawings projects 4 2 (2) 50 6 Scrutinizing 4 Electronics (ICT) drawings projects 4 1 (3) 25 7 Supervising 19 Electrical works projects 19 14 (5) 74 8 Supervising 12 Mechanical works projects 12 15 3 125 9 Supervising 14 Electronics (ICT) works projects 14 9 (5) 64 10 Preparation of 20 technical specification for plants, machines, generator sets and equipment projects 20 9 (11) 45 11 Supervision, installation, testing and commissioning of 10 plant, machines, Generator sets and equipment projects 10 3 (7) 30 16

3.2.2 Financial Performance: The Division in FY 2016/17 projected to generate Tshs. 1,204,914,000.00 which expected to contribute about 3% of the total revenue to be generated by the Agency from its own sources. The Division generated Tshs 846,349,987.00 which is 70% of the annual target of Tshs 1,204,914,000.00. This achievement is summarized as follows:- Table 16: Summary of revenue generated for the period of July, 2016 June, S/N Activities Planned Revenue For FY 2016/ Revenue Generated Variance Achieve ment in % 1 2 3 4 5 6 7 8 9 10 11 38 Electrical designs projects average of 204m value/project 24 Mechanical designs projects average of 184.8m value/project 28 Electronics (ICT) designs projects average of 170m value/project Scrutinizing 4 Electrical drawings projects Scrutinizing 4 Mechanical drawings projects Scrutinizing 4 Electronics (ICT) drawings projects Supervising 19 Electrical works projects Supervising 12 Mechanical works projects Supervising 14 Electronics (ICT) works projects Preparation of 20 technical specification for plants, machines, generator sets and equipment projects Supervision, installation, testing and commissioning of 10 plant, machines, Generator sets and equipment projects 364,800,000 194,267,200 (170,532,800) 53 211,200,000 355,850,267 144,650,267 168 240,800,000 140,831,424 (99,968,576) 58 4,000,000 3,372,000 (628,000) 84 4,000,000 2,038,400 (1,961,600) 51 4,000,000 2,000,000 (2,000,000) 50 91,200,000 45,609,365 (45,590,635) 50 52,800,000 28,412,288 (24,387,712) 54 60,200,000 20,010,093 (40,189,907) 33 84,000,000 38,099,319 (45,900,681) 45 21,000,000 15,859,631 (5,140,369) 76 Grand Total 1,138,000,000 846,349,987 (291,650,013) 74 17

3.3 EQUIPMENT HIRE AND FERRY SERVICES DIVISION: JULY, 2016 JUNE, 3.3.1 EQUIPMENT HIRE SECTION TEMESA operates on hire basis different types of equipment countrywide, During FY 2016/17 the services provided by Equipment Hire Section is expected to generate Tshs 2,889,530,500.00, the revenue generation is from construction equipment hire, stone crushers hire, car hire, drivers proficiency test and car park business. During the period of July, 2016 to June, equipment hiring services generated Tshs 1,574,053,118.00 which is 54% of the annual target of Tshs 2,889,530,500.00 as indicated in Table 17 below: S/No. Table 17 Summary of Equipment Hiring revenue generated for the period of July, 2016 - June, Region Planned Revenue for FY 2016/ Revenue Generated Variance Achieve ment in % 1 Arusha 10,000,000 42,832,000 32,832,000 428 2 Pwani 28,800,000 122,938,000 94,138,000 427 3 Iringa 7,800,000 11,291,576 3,491,576 145 4 Kagera 50,400,000 60,775,380 10,375,380 121 5 Tabora 48,000,000 53,272,600 5,272,600 111 6 Mtwara 7,200,000 5,450,000 (1,750,000) 76 7 Kigoma 24,000,000 16,810,000 (7,190,000) 70 11 Morogoro 550,480,000 348,149,840 (202,330,160) 63 13 Mwanza 33,000,000 18,364,000 (14,636,000) 56 9 Tanga 509,400,500 275,725,000 (233,675,500) 54 12 DSM GTA 467,000,000 223,953,500 (243,046,500) 48 8 Mbeya 642,000,000 301,444,679 (340,555,321) 47 10 Dodoma 25,000,000 11,400,000 (13,600,000) 46 14 Shinyanga 48,000,000 20,308,000 (27,692,000) 42 15 Katavi 11,400,000 3,000,000 (8,400,000) 26 16 Geita 110,000,000 19,280,543 (90,719,457) 18 18 Manyara 156,000,000 25,850,000 (130,150,000) 17 17 Lindi 114,250,000 13,208,000 (101,042,000) 12 19 Rukwa 46,800,000 0 (46,800,000) 0 Total 2,889,530,500 1,574,053,118 (1,315,477,382) 54 18

3.3.2 FERRY SERVICES 3.3.2.1 Physical performance TEMESA runs 28 ferries at 19 different crossings throughout the country. The physical functions performed as at June, were as follows:- FORM 17: CUMULATIVE QUARTERLY MTEF TARGET MONITORING REPORT VOTE: X8 VOTE NAME: TEMESA PERIOD COVERED: JULY, 2016 - JUNE, IN FINANCIAL YEAR: 2016/17 BUDGET COVERAGE: (DEVELOPMENT OR RECURRENT): DEVELOPMENT PROJECT CODE AND NAME: 4125 CONSTRUCTION OF FERRY RAMPS SUB-VOTE CODE AND NAME: EQUIPMENT HIRE AND FERRY SERVICES DIVISION OBJECTIVE CODE AND NAME: B: FERRY SERVICES IMPROVED CO+A1:O13+A1: O5DES AND LINKAGES ANNUAL PHYSICAL TARGET CUMULATIVE STATUS ON MEETING THE PHYSICAL TARGET EXPENDITURE STATUS REMARKS ON IMPLEMEN TATION Target Code F Y D P II P R Target Description Actual progress up to 30 th June, Estimated % Completed On Track At Risk Unknown Cumulative Budget Cumulative Actual Expenditure % Spent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 D02D To construct 3 out of 7 ferry ramps between Magogoni (Dar es Salaam) - Bagamoyo (Coastal) by June, BO4D To carry out expansion of Kigamboni ferry terminal side by June, Project postponed. Valuation of buildings in the area intended is on progress. 10 11,416,288,660 0 0 20 2,724,923,000 14,000,000.00 1 19

BO4D To construct Bwina - ramps at Chato - Nkome crossings by June, Contractor procured and Tender awarded 10 108,240,000 0 0 BO4D To construct Lindi - Kitunda ferry ramps by June, HO1D To rehabilitate Kilombero ferry ramps (Ulanga) side by June, HO1D To carry out construction of Pangani Ferry buildings by June, Construction are continuing, we expect to be completed in Nov, Project postponed At stage of procuring a contractor 50 1,200,000,000 0 0 5 10 139,169,000 0 0 90,000,000 0 - TOTAL 15,678,620,660 14,000,000.00 0 20

TABLE 17: CUMULATIVE QUARTERLY MTEF TARGET MONITORING REPORT VOTE: X8 VOTE NAME: TEMESA PERIOD COVERED: JULY, 2016 - JUNE, IN FINANCIAL YEAR: 2016/17 BUDGET COVERAGE: (DEVELOPMENT OR RECURRENT): DEVELOPMENT PROJECT CODE AND NAME: 4144 REHABILITATION OF FERRIES SUB-VOTE CODE AND NAME: EQUIPMENT HIRE AND FERRY SERVICES DIVISION OBJECTIVE CODE AND NAME: B: FERRY SERVICES IMPROVED CODES AND LINKAGES ANNUAL PHYSICAL TARGET CUMULATIVE STATUS ON MEETING THE PHYSICAL TARGET EXPENDITURE STATUS REMARKS ON IMPLEMEN TATION Target Code F Y D P II P R Target Description Actual progress up to 30 th June, Estimated % Completed On Track At Risk Unknown Cumulative Budget Cumulative Actual Expenditure % Spent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 H01D To rehabilitate MV Pangani II by June, Rehabilitation completed by April, 100 697,690,000 297,729,480 42 H01D To rehabilitate MV Sengerema by June, At tender 10 preparation stage. Procurement of 250,000,000 0.00 0 new engine completed. TOTAL 947,690,000 297,729,480 31 21

TABLE 17: CUMULATIVE QUARTERLY MTEF TARGET MONITORING REPORT VOTE: X8 VOTE NAME: TEMESA PERIOD COVERED: JULY, 2016 - JUNE, IN FINANCIAL YEAR: 2016/17 BUDGET COVERAGE: (DEVELOPMENT OR RECURRENT): DEVELOPMENT PROJECT CODE AND NAME: 4139 PROCUREMENT OF FERRIES SUB-VOTE CODE AND NAME: EQUIPMENT HIRE AND FERRY SERVICES DIVISION OBJECTIVE CODE AND NAME: B: FERRY SERVICES IMPROVED CODES AND LINKAGES ANNUAL PHYSICAL TARGET CUMULATIVE STATUS ON MEETING THE PHYSICAL TARGET EXPENDITURE STATUS REMARKS ON IMPLEMENT ATION Target Code F Y D P II P R Target Description Actual progress up to 30 th June, Estimated % Completed On Track At Risk Unknown Cumulative Budget Cumulative Actual Expenditure % Spent 1 2 3 4 5 6 7 8 9 10 11 12 13 14 D01D To procure one ferry to ply between Magogoni - Kigamboni crossing by June, Procurement completed in June 100 7,407,150,000 3,607,609,950 49 HO2D To upgrade automated vending machines at Magogoni - Kigamboni and installing at Kisorya - Rugezi and Pangani - Bweni crossings by June, Implementation is on progress expected to be completed in August, Rugezi, Kisorya and Pangani is under tender preparation 40 1,999,213,000 47,299,120 2 22

H02D To procure one ferry to ply between Kigongo - Busisi crossings by June, HO2D To procure three fiber boats for Pangani, Msangamkuu and KilambonaMoto by June, Contract signed. Construction will start in August, All fibre boats completed and delivered by April, 40 100 3,352,990,000 908,808,060 27 480,000,000 72,446,000 15 TOTAL 13,239,353,000 4,636,163,130 35 23

Table 19: Ferry services traffic count for the period of July, 2016 to June, No Item Description Planned Traffic count for FY 2016/ Actual Traffic Count per Period Percentage of traffic count per Period 1 Adults 30,482,844 24,918,590 82 2 Children up to 14 years 1,037,208 538,855 52 3 Bicycles 1,329,900 826,459 62 4 Motor cycles 765,984 423,138 55 5 Package between 30-50 Kg 165,780 205,827 124 6 Package above 50 Kg 161,328 119,011 74 7 Carts 16,220 5,293 33 8 Tri cycles 61,440 19,933 32 9 Passenger Tricycles 65,424 32,190 49 10 Cattle 66,960 12,866 19 11 Other domestic animals 14,688 3,751 26 12 Saloon cars 819,528 391,621 48 13 Pick-ups up to 1.5 tonnes 394,032 507,332 129 14 Station wagon 40,704 212,335 522 15 Mini buses up to 15 passengers 51,720 67,438 130 16 17 Vehicles above 2 tonnes up to 7 tonnes. Vehicles carrying above 15 up to 29 Passengers 73,789 50,351 68 49,908 36,953 74 18 Tractor without trailer 1,308 25,753 1969 19 Tractor with trailer 1,860 5,777 311 20 Vehicle carrying more than 29 passengers 19,080 12,225 64 21 22 Vehicles above 7 tonnes up to 15 tonnes. Vehicles above 15 tonnes up to 20 tonnes 16,896 9,693 57 11,772 8,477 72 23 Vehicles above 20 tonnes up to 30 tonnes 5,412 615 11 24 Semi-trailer 7,008 20,037 286 25 Trucks and Trailer 1,740 5,605 322 26 Plants & Earth movers 720 406 56 27 Abnormal load 192 80 42 24

Table 20: Annual Preventive Maintenance Schedule for Ferry Services of FY 2016/17 Na Ferry/Pontoon Planned scheduled services per period Number of scheduled services per period % of Achievement 1 Mv Magogoni 12 12 100 2 Mv Kigamboni 12 12 100 3 Mv Misungwi 12 12 100 4 Mv Sengerema 12 12 100 5 Mv Kilombero II 12 12 100 6 Mv Kilombero I 4 4 100 7 Mv Pangani II 12 12 100 8 Mv Ujenzi 12 12 100 9 Mv Nyerere 12 12 100 10 Mv Kome II 12 12 100 11 Mv Utete 4 4 100 12 Mv Ilagala 4 4 100 13 Mv Kyanyabasa 4 4 100 14 Mv Musoma 12 12 100 15 Mv Ruvuvu 12 12 100 16 Mv Kilambo 12 12 100 17 Mv Ukara 4 4 100 18 Mv Sabasaba 12 12 100 19 Mv Malagarasi 12 12 100 20 Mv TEMESA 9 9 100 21 Mv Mara 9 9 100 22 Mv Tegemeo 4 4 100 23 Mv Chato 12 12 100 24 Mv Ruhuhu 4 4 100 Table 21: Major Maintenance Schedule for Ferry Services for July, 2016 June, No Ferry/Pontoon Planned scheduled services per period Implementation status % of Achievement 1 Mv. Magogoni 1 Maintenance completed 100 2 Mv Pangani II 1 3 Mv Sengerema 1 Maintenance completed 100 To be Re- advertised 5 25

3.3.2.2 Financial Performance: During FY 2016/17 ferry operations are expected to generate a total of Tshs 16,390,181,510.00, this is equal to 43% of the total revenue to be generated from TEMESA own sources of revenue for FY 2016/17. In the period of July, 2016 to June, the revenue collected is amounting to Tsh 13,515,303,458.00 which is 82% of the annual projected revenue. Expenditure during the same period amounts to Tsh 13,553,292,498.00. Table 22, 23 and 24, details revenue and expenditure for each ferry station per period. S/No. Table 22 Summary of revenue generated for the period of July, 2016 June, Station Planned Revenue for FY 2016/ Revenue Generated Variance Achieve ment in % 1 Ilagala - Kajeje 160,000,000 197,108,632 37,108,632 123 2 Kigongo - Busisi 4,540,302,000 4,996,029,875 455,727,875 110 3 Pangani - Bweni 333,214,800 322,936,866 (10,277,934) 97 4 Msanga Mkuu - Msemo 158,182,000 151,435,700 (6,746,300) 96 5 Kahunda - Maisome 300,140,400 287,323,910 (12,816,490) 96 6 Kisorya - Rugezi 404,184,000 374,829,000 (29,355,000) 93 7 Kasharu Buganguzi (Kyanyabasa) 39,213,600 35,953,899 (3,259,701) 92 8 Nyakalilo - Kome 258,468,000 224,376,600 (34,091,400) 87 9 Musoma - Kinesi 262,980,000 225,478,500 (37,501,500) 86 10 Iramba - Majita 64,806,000 55,398,100 (9,407,900) 85 11 Chato - Nkome 133,110,000 109,207,269 (23,902,731) 82 12 Rusumo Nyakaziba 70,040,400 52,634,400 (17,406,000) 75 13 Magogoni - Kigamboni 7,856,442,810 5,480,616,498 (2,375,826,312) 70 14 Bugolola - Ukara 325,418,400 212,829,400 (112,589,000) 65 15 Kilambo - Namoto 96,859,300 60,676,860 (36,182,440) 63 16 Kilombero - Ulanga 1,102,911,000 646,385,534 (456,525,466) 59 17 Kirumba - Luchelele 281,904,000 82,082,415 (199,821,585) 29 18 Ilunga Kipingu (Ruhuhu) 2,004,800 0 (2,004,800) 0 19 Utete - Mkongo 0 0 - - Grand Total 16,390,181,510 13,515,303,458 (2,874,878,052) 82 26

Table 23: Summary of Ferry Stations Expenditure for the period of July, 2016 June, S/No. Station Planned Expenditure for FY 2016/ Actual Expenditure Ferry Station Transfer HQ % of total spent 1 Iramba - Majita 64,806,000 121,987,839 0 188 2 Ilagala - Kajeje 160,000,000 149,722,159 28,926,790 112 3 Kigongo - Busisi 4,540,302,000 3,424,222,653 1,571,807,222 110 4 Pangani - Bweni 333,214,800 309,409,007 13,669,359 97 5 Msanga Mkuu - Msemo 158,182,000 145,395,753 7,495,647 97 6 Kahunda - Maisome 300,140,400 286,363,910 1,500,000 96 7 Kisorya - Rugezi 404,184,000 359,191,591 15,637,409 93 8 Kasharu Buganguzi (Kyanyabasa) 39,213,600 30,971,359 4,812,540 91 9 Nyakalilo - Kome 258,468,000 222,646,600 1,730,000 87 10 Musoma - Kinesi 262,980,000 225,478,000 0 86 11 Chato - Nkome 133,110,000 108,322,669 1,000,000 82 12 Rusumo Nyakaziba 70,040,400 48,634,960 3,999,440 75 13 Magogoni - Kigamboni 7,856,442,810 3,993,005,811 1,487,610,687 70 14 Bugolola - Ukara 325,418,400 212,829,400 0 65 15 Kilambo - Namoto 96,859,300 56,525,220 2,597,140 61 16 Kilombero - Ulanga 1,102,911,000 359,251,699 277,210,818 58 17 Kirumba - Luchelele 281,904,000 81,336,815 0 29 18 Ilunga Kipingu (Ruhuhu) 2,004,800 0 0 0 19 Utete - Mkongo 0 0 0 0 Grand Total 16,390,181,510 10,135,295,445 3,417,997,053 83 27

S/No. Table 24: Summary of Income statement for Ferry stations in the period of July, 2016 June, FERRY STATION REVENUE COLLECTED EXPENDITURE INCURRED NET/LOSS INCOME 1 Ilagala - Kajeje 197,108,632 178,648,949 18,459,683 2 Kilombero - Ulanga 646,385,534 636,462,517 9,923,017 3 Kilambo - Namoto 60,676,860 59,122,360 1,554,500 4 Kirumba - Luchelele 82,082,415 81,336,815 745,600 5 Kasharu Buganguzi (Kyanyabasa) 35,953,899 35,783,899 170,000 6 Musoma - Kinesi 225,478,500 225,478,000 500 7 Kigongo - Busisi 4,996,029,875 4,996,029,875-8 Kisorya - Rugezi 374,829,000 374,829,000-9 Nyakalilo - Kome 224,376,600 224,376,600-10 Rusumo Nyakaziba 52,634,400 52,634,400-11 Magogoni - Kigamboni 5,480,616,498 5,480,616,498-12 Bugolola - Ukara 212,829,400 212,829,400-13 Chato - Nkome 109,207,269 109,322,669 (115,400) 14 Pangani - Bweni 322,936,866 323,078,366 (141,500) 15 Kahunda - Maisome 287,323,910 287,863,910 (540,000) 16 Msanga Mkuu - Msemo 151,435,700 152,891,400 (1,455,700) 17 Iramba - Majita 55,398,100 121,987,839 (66,589,739) 18 Ilunga Kipingu (Ruhuhu) 0 0-19 Utete - Mkongo 0 0 - Grand Total 13,515,303,458 13,553,292,498 (37,989,040) 3.4 BUSINESS SUPPORT SERVICES DIVISION: JULY, 2016 JUNE, During the period of July, 2016 to June, the Division collected Tshs 61,906,105.00 from its own sources of revenue, which is 129% of the annual target of Tshs. 47,840,000.00 and Tshs 13,838,983,035.00 from Government subvention against a target of Tshs 27,579,725,500.00 this is equal to 50%. Table below shows the details: 28

Table 25: Summary of revenue collected in the period of July, 2016 June, S/No. Source of Revenue Planned Revenue for FY 2016/ Actual Variance % Achieved 1 Grants for PE 7,580,695,500 7,216,212,335 2 Development Funds 19,999,030,000 6,622,770,700 3 4 Sub-total (Govt. subvention) Advertisement Services Sale of TenderDocuments (364,483,165) (13,376,259,300) 27,579,725,500 13,838,983,035 (13,740,742,465) 50 2,200,000 0 18,000,000 8,550,000 5 Canteen Rent 4,800,000 4,800,000 6 Miscellaneous Revenue Sub-total (own sources) 22,840,000 48,556,105 (2,200,000) (9,450,000) - 25,716,105 95 33 0 48 100 213 47,840,000 61,906,105 14,066,105 129 Grand Total 27,627,565,500 13,900,889,140 (13,726,676,360) 50 4.0 RECURRENT BUDGET PHYSICAL PERFORMANCE, JULY, 2016 JUNE The physical performance in the implementation of planned targets under recurrent budget varied from one Division/Unit to another. Generally, the physical performance is good. However, some of targets were not implemented due to lack of funds. Implementation status for recurrent budget from July, 2016 to June, for each Division/Unit is shown in Annex E (1) on page 61 onwards of this report. 5.0 CHALLENGES/PROBLEMS EXPERIENCED IN THE PERIOD OF JULY, 2016 JUNE, (i) Delay of payments from clients Most of the Government institutions and Ministries have experienced shortage of funds to pay their dues. This has affected TEMESA services provisions, which affected the performance of the Agency. (ii) Operation of ferries which cannot sustain themselves financially Some of ferry stations including Ruhuhu, Iramba/Majita and Utete perform below the expected targets and thus cannot sustain 29

themselves. This has necessitated injecting fund to support their operations. (iii) Low release of development funds The Agency experienced low release of development funds from Government. Only 33% was received during the period under review which affected the implementation of most projects. 6.0 THE WAYFORWARD (i) (ii) (iii) To continue with the effort to request Government Institutions and Ministries to pay their debts. To set new ferry tolls that can meet operational cost of those ferries which cannot perform to the expected targets. To improve the general performance to meet objectives and targets. 30