DAR ES SALAAM: The government and the African Development Bank (AfDB) have signed a two-year deal that will see the latter providing $158.1 million US dollars (398.7bn/-) for the implementation of a Standard Gauge Railway project connecting Tanzania, Burundi, and the Democratic Republic of Congo (DRC), as well as boosting the capital of the Tanzania Agricultural Development Bank (TADB).
Out of the funds released by the financial institution, a total of 231.3bn/- will be injected into the strategic SGR project.
Phase II of the project will connect Tabora, Kigoma, Uvinza to Malagarasi, from where it will link Tanzania to other East African States, namely DRC and Burundi.
Following the signing of the deal at the Ministry of Finance offices in Dar es Salaam on Friday, Finance Minister Dr Mwigulu Nchemba noted that the project is beneficial for Tanzania as it will enhance transportation and strengthen diplomatic relations between the country and neighboring DRC and Burundi.
Prof Makame Mbarawa, Tanzania’s Minister for Transport, thanked AfDB for the deal, stating that the agreement was reached after President Samia Suluhu Hassan conducted a series of meetings to secure funding sources for the project.
On her part, the bank’s resident manager, Dr. Patricia Laverley, emphasized that connecting African countries economically is AfDB’s top priority; hence, they are pleased to take part in this crucial project in the bloc.
While the bank has financed various development projects in the country, this marks its first venture into the SGR project.
Tanzania Railway Corporation (TRC)’s Director-General, Mr. Masanja Kadogosa, mentioned at the event that preparations for Dar es Salaam to Dodoma transport using SGR continue as Tanzania and AfDB sign the deal, while Phase I of the project progresses well.
