By Katare Mbashiru in Dodoma
TANZANIA has received yet another boost after signing a Framework Arrangement with the government of the Republic of Korea to enable the former to access concessional loans to a maximum
of 300,000,000 US dollars (equivalent to 684.6bn/-).The loan will be sourced from Korea's Economic Development Cooperation Fund (EDCF), and it will help the government to finance five major strategic projects.
The two countries put pen to paper at a function held at Dodoma's Treasury Square with the Tanzanian government represented by Permanent Secretary in the Ministry of Finance, Doto James, while Korea was represented by Ambassador Cho Tae - Ick, who is representing his country in Tanzania.
Speaking after exchanging documents, Mr James who doubles as Paymaster General (PMG), said the loan will be used in implementing five major projects.
They include the construc tion of two substations for Kigoma - Nyakanazi Power Transmission Line (Northwest Grid), 45 million US dollars, (equivalent to 102.9bn/-).
"The objective of this project is to provide a reliable power source to the North - West region in Tanzania, reducing operation and maintenance costs of energy production by replacing the diesel generations with a cheaper national grid and reducing Greenhouse gas emission by decommissioning diesel generators," he noted.
The money will further be spent on construction of the new Selander Bridge, 32.6 million US dollars, equivalent to 74.5bn/-, (Supplementary Loan).
The loan is also part of the Government Budget Support (GBS) 40 million US dollars, equivalent to 91.4bn/- to provide the financial support to fill the Government budgetary gap caused by Covid-19.
The programme, he said, aims at improving the budgetary capacity of the public health system of the United Republic of Tanzania by enhancing the Tanzanian Government's capacity to respond more effectively to the negative impacts caused by Covid-19.
Others are improvement of sewerage services in Dodoma Capital City project, 70 million US dollars (160bn/-), "The project is highly needed as the big number of people are now shifting to Dodoma as a result of the Central Government decision to relocate the offices to the Capital City of Dodoma," he said.
The loan will also be used in improvement of National Land Data Infrastructure (LDI), USD 65 million, (148.6bn/-).
According to the PS, the project aims to strengthen and improve surveying and mapping infrastructure and aims to build the Government's sustainable capacity to prepare basic maps, speed up and reduce land survey costs.
"On behalf of the Tanzanian Government, I would like to express my sincere appreciation for this valuable contribution under the Framework Arrangement," said the PS.
Mr James added that the two nations have an outstanding relationship, which is growing as reflected by the increase in the number of bilateral development projects, both the ongoing and those in the pipeline.
So far, he noted, Tanzania had benefited and was expected to benefit from the EDCF's support mostly in Energy, Water, Transport infrastructure and Education.
Speaking at the occasion the ambassador of the Republic of Korea in Tanzania expressed his country's commitment to continuing supporting Tanzania in the implementation of its flagship projects.
"Am glad that the country is doing well in socio economic development and I wish to extend our continued support to this country's development," noted Mr Cho Tae - Ick.
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