Tanzania: UBA Upbeat On Stiegler's Gorge Power Project

United Bank for Africa (UBA) Tanzania managing director Usman Isiaka responds to questions from Mwananchi Communications Limited (MCL) journalists during an interview at MCL headquarters in Dar es Salaam yesterday. On the right is the UBA Tanzania head of marketing and corporate communications, Brendansia Kileo. PHOTO | MICHAEL MATEMANGA 

By The Citizen Reporter @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam — United Bank for Africa (UBA) Tanzania managing director Usman Imam Isiaka says the bank group is confident about the construction of the $2.95 billion (Sh6.6 trillion) Rufiji Hydropower Project.

Mr Isiaka said the over-2000MW project was a significant investment for Tanzania, which would be

a major milestone in the power generation sector. He said UBA Bank was proud to be associated with the country's desire for the completion of the dam at what is commonly known as 'Stiegler's Gorge' along the Rufiji river.

He was speaking during a visit to Mwananchi Communications Limited (MCL) offices at Tabata Relini, Dar es Salaam, yesterday.

Mr Isiaka said the energy sector was among the main areas of financing for the Nigeria-headquartered UBA Group.

So far, UBA Tanzania and CRDB Bank Tanzania have provided Advanced Payment Guarantees (APG) of $516 million to JV partners (Arab Contractors and Elsewedy Electric of Egypt) on the back of a counter-guarantee provided by the Africa Export-Import Bank (Afreximbank) of Egypt for the project.

The guarantee was followed by disbursement of $309 million (Sh710 billion) of the foreign component of the APG by Tanzania Electric Supply Company (Tanesco).

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"We're committed to ensuring that the project materialises so it can stimulate industrialisation. As a major supporter of the Rufiji Project, UBA Tanzania has also developed various products specifically for the project to enable the contractors to obtain financial support in the areas of Bid Bond, Advance Payment Guarantee, Performance Bond, Invoice Discounting Facility, Contract Financing and overdraft as may be required for effective participation of local contractors in the project," said Mr Isiaka.

The Rufiji project offers significant value-chain business opportunities, he said, dismissing reports that its cost could triple. Construction of the project is in progress, with Sh1.44 trillion budgeted for in the 2019/20 financial year for it.

The bank - with total assets of $15 billion (Sh34.5 trillion) - is a leading pan-African financial services group, with operations in 20 African countries, the UK, USA and France.

It has been a major supporter and financier of infrastructural development projects in all its presence countries in Africa

The bank has also been participating in financing and issuing bank guarantees for the Power Africa Initiative spearheaded by former US President Barack Obama.