Tanzania, Hungary sign 55.1m US dollars loan for Water Project in Kagera

DODOMA: TANZANIA and Hungary have signed a concessional loan agreement worth 55.1m US dollars to support the implementation of the Biharamulo Water Project in Kagera Region.

The agreement was signed in Dodoma by the Permanent Secretary of the Ministry of Finance, Dr Natu El-maamry Mwamba, on behalf of the Tanzanian government, witnessed by Hungary’s newly appointed Ambassador to Tanzania, Katalin Nyirati.

Speaking after the signing ceremony, Dr Mwamba explained that the project implementation agreement was initially signed by the Hungarian Secretary of State responsible for Bilateral Relations in the Ministry of Foreign Affairs and Trade, Boglárka Illés, and the remaining formalities required Tanzania’s legal endorsement.

Dr Mwamba further clarified that Tanzania’s signing of the agreement enables the country to access the loan through Hungary’s Exim Bank, which will be directly utilized for the execution of the water project.

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“The implementation of this project is expected to significantly improve access to safe and clean water for the residents of Biharamulo, aligning with the national development priorities outlined in the Third Five-Year National Development Plan (2021/22–2025/26), Tanzania Development Vision 2025, and the new Tanzania Development Vision 2050,” Dr Mwamba stated.

He added that, while appreciating concessional loans, it is equally important to expand bilateral cooperation to include grant support in other areas such as capacity building, education, and social sectors to ensure inclusive and sustainable benefits for the citizens.

Dr Mwamba emphasized the Tanzanian government’s firm commitment to continue strengthening and expanding bilateral cooperation with Hungary under the leadership of President Dr. Samia Suluhu Hassan, to promote the well-being of citizens in both countries.

He also congratulated Ambassador Nyirati on her appointment, noting that her selection reflects the Hungarian government’s intent to deepen and strengthen historical ties with Tanzania. Dr Mwamba assured the ambassador of full support from the Tanzanian government in advancing bilateral relations.