THE World Bank has assured Tanzania that it is ready to release all concessional loans amounting to 1.7 billion USD (more than 3.9trl/-).
According to the international financial institution’s Executive Director representing 22 African countries, Ms Anne Kabagambe, the loan is part of the amount earmarked in the bank’s eighteenth replenishment managed by International Development Association (The IDA 18 replenishment). IDA is part of the World Bank which offers concessional loans and grants to developing countries.
The IDA 18 replenishment is the largest in IDA’s 56-year history and heralds a significant step change in its policy and financing framework.
It was finalised in December 2016 and aimed at financing projects over the threeyear period from July 1, 2017 to June 30, 2020.
The World Bank senior official gave the assurance yesterday in Dar es Salaam after holding talks with the Tanzania’s Minister for Finance and Planning, Dr Philip Mpango.
She noted that the amount would be dished out before commencement of the IDA’s nineteenth replenishment set for July 2020, upon completion of all procedures of obtaining the funds.
Ms Kabagambe noted that the money would, among other key projects, be spent on improving various sectors such as education, health and in projects under the Tanzania Social Action Fund (TASAF).
She commended the fifth phase leadership under President John Magufuli for leading the war against graft and for proper supervision and implementation of multi-billion shillings projects, including the Standard Gauge Railway (SGR) and Julius Nyerere Hydropower Project (JNHP).
On his part, Minister Mpango appealed to the World Bank to assist the East African nation by giving funds for various projects, including the historic JNHP, railway, water, agriculture, ports and human resources.
He said such projects are very important in economic growth, and their implementation would in turn help improve people’s welfare.
Dr Mpango hailed the Bank’s decision of giving the money (1.7 Billion USD) to Tanzania, hinting that it would be directed into the intended projects.
The World Bank has so far funded a total of 28 development projects in Tanzania worth 5 billion USD (about 11.5trl/-).