The government wants to avoid taking on new loans to build roads.
Residents fear pollution and noise from the proposed plant.
Legislators claim the BRT project offers no value to the country.
President Magufuli says the conditions set by the investor amount to selling Tanzania to China.
Light gauge steel structures save developers up to 20 per cent of the construction cost.
The facility is expected to offer many economic and social benefits.
From April 1, builders will only be allowed to use ribbed steel bars for reinforcement of concrete.
Decision was made after Kenya failed to raise 15% of the project cost.
Some of the major negative effects of the SGR on the Kenyan economy.
The railway is designed to enhance transport operations in the country.