TANZANIA has signed two concessional loan agreements for 164 million US dollars (352.6bn/-) with the African Development Bank (AfDB) as General Budget Support (GBS) for the year 2016/17as well as capital boost for the Tanzania Agricultural Development Bank (TADB).
The two agreements were signed in Dar es
Salaam yesterday between the government, which was represented by the
Permanent Secretary (PS) in the Ministry of Finance and Planning, Mr
Doto James; and outgoing AfDB Country Representative, Dr Tonia Kandiero.
In the first agreement, AfDB gave a
commitment of 70 million US dollars (over 150bn/-) that will be
disbursed to the Tanzania Electric Supply Company Limited (TANESCO) to
increase efficiency in the state- owned power firm.
The second 94 million US dollars (over
200bn/-) agreement intends to increase capital to TADB so that it can be
able to provide soft loans to farmers -- to increase the value chain
from production, value for money and availability of reliable markets
for crops produced by farmers.
The lifespan of both agreements is 40
years whereas the government will start servicing the loan after ten
years from the date the money will be disbursed. Interest is less than 1
per cent, according to details of the agreements.
Speaking after exchanging documents of
the agreements, Mr James said the loan agreement came at the right time,
adding that it will help to increase efficiency within TANESCO as well
as improving the agricultural sector in the country. “Tanzania has been
benefiting more from concessional loans from AfDB compared to other
countries in the Southern African Region,’’ said Mr James.
His AfDB counterpart, Dr Kandiero, said
the bank had so far provided loans to Tanzania totalling 2 billion US
dollars that have been injected in the various development projects,
including improvement of infrastructure, water, electricity, education
and agriculture.
“I believe by increasing capital to the
agricultural bank the country will equally be able to bring agricultural
revolution, and we pledge to extend our continued support in future,’’
said Dr Kandiero.
In another development, Finance and
Planning Minister Dr Philip Mpango yesterday bid farewell Dr Kandiero,
who has been transferred to South Africa as Director General of the
Southern Africa Regional Development and Business Delivery Office. The
office is aimed at accelerating the bank’s business and development
impacts across Africa.
The minister hailed the efforts
undertaken by the outgoing AfDB Country Representative to protect the
interest of Tanzania for the past six years that she worked in the
country.
“During that period, Tanzania has
witnessed outstanding changes in various sectors especially the
infrastructure, agriculture, water, energy where as AfDB made sure that
the projects are implemented to the fullest,’’ she said.
Dr Mpango requested him to help the
country in mobilising funds for the construction of a Standard Gauge
railway that needs a lot of money. In her response, Dr Tonia said she
believed her successor will consider all the good initiatives that are
currently in place as well as making important follow-ups in the
agreements sealed between AfDB and Tanzania
No comments :
Post a Comment