AFRICAN Development Bank (AfDB) has pledged to grant concessional loan to support the government in the construction of the standard gauge railway (SGR).
This was unveiled in Dar es Salaam
yesterday by AfDB Executive Director of the...
East Africa constituency,
representing seven countries including Seychelles Dr Nyamajeje Weggoro
after holding talks with the Deputy Finance and Planning Minister Dr
Ashatu Kijaji.
He said the bank, through its board of
directors have decided to support the SGR project that will spur the
country’s economic growth after being impressed by the performance of
the fifth phase government.
The Tanzania line will run from Dar es
Salaam port to Rwanda’s capital, Kigali. Two other lines will branch off
to Musongati in Burundi and to Mwanza port on the shores of Lake
Victoria to service Ugandan shippers.
The line to Kigali is expected to
ultimately connect to the eastern Democratic Republic of Congo. “The
bank is ready and awaits government proposal in order to find out how
much it could finance the project,” he said adding that also the bank
will find and work with other stakeholders to realise the project.
The 2561 km long SGR project will cost
7.6 billion US dollars where the first phase of the project from Dar es
Salaam to Morogoro Region kicked off recently.
Also, Dr Weggoro said the bank will
collaborate with the government to improve the state owned power firm,
(TANESCO), particularly on its structure and heavy debts for it to
contribute in building the industrial economy.
“AfDB will release funds to improve the
efficiency of the power firm. We will discuss and involve other
stakeholders in order to support the government initiative of
industrialisation,” he noted.
On her part, Dr Kijaji commended AfDB
for being Tanzania’s close development ally by supporting mega
infrastructure, energy, agriculture and social services projects.
She said AfDB investment in the country
has currently reached 1.8 billion US dollars with 75 per cent of being
on infrastructure development where roads projects constituted 51.4 per
cent, energy 10.1 per cent, water and sanitation 13 per cent and
financial sector 25.5 per cent.
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