Tanzania says secures $7.6 bln loan from China's Exim Bank for railway
Wed Jul 20, 2016 3:05pm GMT
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DAR ES SALAAM, July 20 (Reuters) - Tanzania has secured a $7.6 billion loan from China's Export-Import Bank to build a standard gauge railway, President John Magufuli's office said on Wednesday.
"The Export-Import Bank of China has agreed to provide a concessional loan of $7.6 billion to finance construction of a major standard gauge railway line, which will start in this financial year (2016/17), Magufuli's office said in a statement. (Reporting by Fumbuka Ng'wanakialala; Editing by George Obulutsa, editing by David Evans)
Tanzania says secures $7.6 bln loan from China's Exim Bank for railway | News by Country | Reuters
UPDATE 1-Tanzania gets $7.6 bln loan from China's Exim Bank for railway
Wed Jul 20, 2016 4:18pm GMT
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(Adds details on loan)
By Fumbuka Ng'wanakilala
DAR ES SALAAM, July 20 (Reuters) - Tanzania has secured a $7.6 billion loan from China's Export-Import Bank (Exim) to build a railway line that will link it to its neighbours, President John Magufuli's office said on Wednesday.
Tanzania wants to profit from its long coastline and upgrade its rickety railways and roads to serve growing economies in the landlocked heart of Africa.
Magufuli's office said in a statement Exim had agreed to provide the concessional loan to finance construction of a major standard gauge railway line, which will start in this financial year.
The announcement follows talks between Magufuli and Exim Bank President Liu Liange in Tanzania's administrative capital Dodoma on Wednesday.
"The planned standard gauge railway line will improve regional trade links and help to boost the economies of Tanzania and its landlocked neighbours including Uganda, Rwanda, Burundi and the Democratic Republic of the Congo (DRC)," the statement said.
Natural gas discoveries in Tanzania and oil finds in Kenya and Uganda have turned East Africa into an exploration hotspot for oil firms but transport infrastructure in those countries has suffered from decades of neglect and under-investment.
Tanzania said last year it had awarded contracts to Chinese firms to build new railway lines, expanding Beijing's presence in East Africa's second-biggest economy.
In 2014 it signed an agreement with China Merchant Holding International to build a mega port and economic zone at Bagamoyo that is expected to cost at least $10 billion.
Exim Bank is also financing a $1.2 billion, 532 km (330 mile) natural gas pipeline in Tanzania.
Tanzania's finance and planning ministry said in a separate statement on Wednesday the country had secured a $200 million loan from the African Development Bank (AfDB) to finance transport infrastructure projects. (Reporting by Fumbuka Ng'wanakialala; Editing by George Obulutsa and Susan Thomas)
UPDATE 1-Tanzania gets $7.6 bln loan from China's Exim Bank for railway | News by Country | Reuters
President JPM and China's Exim Bank President in Chamwino Statehouse Dodoma.
High delegation meeting btn Tanzanian Government and Exim Bank team plus China diplomats in Tanzania.
Never seen JPM in such a jovial mood!
Here again
Group picture of the participants of the meeting.
More pictures
Pictures source: Michuzi blog
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