Mpendwa1
JF-Expert Member
- Dec 6, 2013
- 568
- 387
Good progress, sasa twendeni kazi wabongo kujenga nchi.
Tanzania secures US $1.46bn loan for SGR
Tanzania has secured a US $1.46bn concessional loan from the Standard Chartered Bank Group to fund its Morogoro-Dodoma standard gauge railway (SGR).
According to Dr. Philip Mpango, Finance Minister the new loan is part of an agreement reached with Standard Chartered Bank Group Executive Director Bill Winters in Dar es Salaam, which will go to fund the 430 km line between Morogoro and Makutupora.
The government has so far allocated US $700m for its SGR projects in the 2018/2019 annual budget.
“We are still seeking more funds from other partners to fund the remaining sections that will see us extend the line to the Rwandan border,” said Dr Mpango.
The Stanchart loan means that the government has secured more than 75% funding for the US $1.9bn project, which it awarded a joint venture of Portuguese and Turkish firms, Mota Engil and Yapi Merkezi respectively. It is also understood that it will be issuing a last contract for the third phase of the project this year, and other two contracts to be announced in the first quarter of 2019.
Last year, President John Magufuli launched a 525 km line between Dar es Salaam and Morogoro, which is being funded by the Turkey Exim Bank to the tune of US $1.2 bn.
However, Tanzania expects to spend close to US $14bn on the line from its capital to its border town with Rwanda at Rusumo, covering almost 2,600 km. Meanwhile, Tanzania has already received the first consignment of 7,100 tonnes of rails for the first phase from Japan.
Tanzania secures US $1.46bn loan for SGR
Tanzania has secured a US $1.46bn concessional loan from the Standard Chartered Bank Group to fund its Morogoro-Dodoma standard gauge railway (SGR).
According to Dr. Philip Mpango, Finance Minister the new loan is part of an agreement reached with Standard Chartered Bank Group Executive Director Bill Winters in Dar es Salaam, which will go to fund the 430 km line between Morogoro and Makutupora.
The government has so far allocated US $700m for its SGR projects in the 2018/2019 annual budget.
“We are still seeking more funds from other partners to fund the remaining sections that will see us extend the line to the Rwandan border,” said Dr Mpango.
The Stanchart loan means that the government has secured more than 75% funding for the US $1.9bn project, which it awarded a joint venture of Portuguese and Turkish firms, Mota Engil and Yapi Merkezi respectively. It is also understood that it will be issuing a last contract for the third phase of the project this year, and other two contracts to be announced in the first quarter of 2019.
Last year, President John Magufuli launched a 525 km line between Dar es Salaam and Morogoro, which is being funded by the Turkey Exim Bank to the tune of US $1.2 bn.
However, Tanzania expects to spend close to US $14bn on the line from its capital to its border town with Rwanda at Rusumo, covering almost 2,600 km. Meanwhile, Tanzania has already received the first consignment of 7,100 tonnes of rails for the first phase from Japan.