Banks say are ready to support SGR III suppliers, contractors
22
Apr 2022
James Kandoya
Dar es Salaam
Business
The Guardian
Banks say are ready to support SGR III suppliers, contractors
TANZANIA banks are now ready to support suppliers, contractors and other dealers to participate in the phase III of the construction of the Standard Gauge Railway (SGR) - Makutopora-Tabora section.
SGR infrastructures are under construction. Banks have agreed to offer financing to contractors, suppliers of goods and services PHOTO/FILE
Tanzania Bankers Association Chairperson Abdulmajid Nsekela disclosed that recently at the official occasion of laying the foundation stone for the starting of the phase II of the project.
He said the project was very important to country development therefore the financial sector must fully be involved to enable local; suppliers and dealers to participate.
He assured them that they were ready to support them individually once they had submitted a performance invoice insisting that it was another opportunity for them.
Nsekela commended the government for prioritizing local content to enable local contractors and suppliers to participate in the ongoing contraction.
“Banks have been supporting contractors in different stages of construction and paid them when certificates are ready, ”he said
He, however, called on the banks to be creative by linking with contractors noting they had disbursed over 104bn/- in the ongoing construction project in the country.
“CRDB is the only bank operating in Burundi. Therefore, it is our hope that the bank will be in position to serve our fellow Tanzanians in Burundi and Democratic Republic of Congo (DRC) in the value chain,” he noted.
Tanzania Commercial Bank (TCB) managing director, Moshing Sabasaba said his bank has been collaborating with Tanzania Railway Corporation (TRC) to give working capital and importation of locomotives and wagons.
TRC director general Masanja Kadogosa said that there were over 32 local companies participating in the ongoing construction of the rail from Dar es Salaam-Morogoro up to Makutopora-Tabora section so far.
“There are plenty of opportunities for local suppliers and dealers to use the opportunities available to participate in the project,” he said
Kadogosa said the contractor was ready to trade with local suppliers and engineers but they must observe high quality of products supplied to the project in order to meet the standard recommended.
According to the director general, despite the fact that the demand was big, he called more local experts to utilize the opportunities available.
The phase III of the SGR –Makutopora-Tabora(368 kilometers) under the Turkish contractor, Yapi Merkezi worth 4.4trn/- will be completed by 2025.
Tanzania government has disbursed over 14.32trn/- so far for the fourth phases of the project, that once start operating, it will recoup after 25 years.
The railway system will link the country to the neighbouring countries of Rwanda and Uganda,and through these two, to Burundi and Democratic Republic of Congo,as part of East African Railway master plan.
The new Standard Gauge Railway (SGR) is intended to replace the old, inefficient meter-gauge railway system.
TANZANIA banks are now ready to support suppliers, contractors and other dealers to participate in the phase III of the construction of the Standard Gauge Railway (SGR) - Makutopora-Tabora section.