Tanzania,China sign two key deals worth sh89bn

Foreign Affairs permanent secretary John Haule and Chinese Ambassador to Tanzania Liu Xinsheng cut a ribbon after the Chinese embassy handed over buses and other vehicles worth Sh9 billion in Dar es Salaam yesterday to facilitate the ministry’s activities. PHOTO | SILVAN KIWALE 

By Fariji Msonsa ,The Citizen Reporter

In Summary

However, one of the two signed exchange letters aims at donating some equipment valued at Sh40 million to the Prevention and Combating of Corruption Bureau (PCCB).

Dar es Salaam. The government through the ministries of Finance and Foreign Affairs, yesterday signed two agreements on economic and technical cooperation as well as two exchange letters for funding worth Sh89 billion with the government of China, in which the money will be channelled to development projects.

The ceremony held in the city yesterday was also accompanied by the handing over of 91 modern vehicles which will be distributed to government ministries. Some of them are set to be dedicated to the Nyerere International Convention Centre. The agreement includes a commitment by the Chinese to provide Tanzania with a Sh52 billion grant for development and the other offer of a Sh26 billion interest- free loan to the State.

Speaking after the signing of the documents, the permanent secretary in the ministry of Finance, Dr Servacius Likwalile, said the funds would be channelled to the water, education, energy and infrastructure sectors.

“Tanzania is committed to extending friendship with the people of the republic of China. And the funds for which we have signed agreements today will be used as intended in the development of education, water and infrastructure and improve the lives of Tanzanians,” said Dr Likwalile.

However, one of the two signed exchange letters aims at donating some equipment valued at Sh40 million to the Prevention and Combating of Corruption Bureau (PCCB). The other is meant for providing furniture to the Nyerere International Convention Centre which is also China-funded.

For his part, the permanent secretary in the ministry of Foreign Affairs and International Co-operation, Mr John Haule, said the vehicles which include buses, mini buses and MG saloon cars would help the government to reduce some transport challenges during national functions. He added that the vehicles would boost transport for govt visitors and ease movement for government officials.

The state-of-the-art buses have passengers sections, conference rooms with the capacity to accommodate 10 people and built-in latrines. He said the deal showed that the relationship between the two countries would last for a long time.

“We are so grateful for the donation from the people of the republic of China...this is a sign that the cooperation will last forever,” said Mr Haule.

However, the ambassador Lu Youqing chine has for long time cooperating with Tanzania in terms of finance and technology, yet, the relationship is not for that between a poor nation and a rich one, but if for brotherhood.

“Our relationship is between the poor and the rich. As to this, china is committed to continue offering a support to Tanzania. And after this signing, we hope soon we will arrange to sign another agreement for developing the Bagamoyo port,” he said.