THE government of Tanzania has signed a Shillings 231.3bn ($US 91m) loan agreement with the African Development Bank (AfDB) to finance construction of the Tabora – Kigoma and Uvinza – Malagarasi sections of the second phase of the country’s Standard Gauge Railway (SGR) network.
The agreement was signed at the Ministry of Finance in Dar es Salaam on February 23 and follows the approval by AfDB in December of a financing package totalling $US 696m for the project. Under the agreement, AfDB will provide $US 98.62m in grants to Burundi and $US 597.79m as loans and guarantees to Tanzania. AfDB will also continue to raise $US 3.2bn of the estimated total $US 3.93bn cost of the second phase.
The 411km Tabora – Kigoma line will extend the single-track, electrified SGR west to Lake Tanganyika, close to the southern border with Rwanda. A construction contract awarded by Tanzania Railways Corporation (TRC) was signed with China Civil Engineering Construction (CCECC) for the project in December 2022.
The 156km Uvinza – Malagarasi section will extend SGR north to the border into Burundi. TRC awarded the contract for construction to CCECC, working in association with China Railway Construction (CRCC). The contract also includes the 84km Malagarasi – Musongati section in Burundi, with the line set to serve the world’s 10th largest nickel deposit, which is located in the Musongati area.
Tanzania’s minister of finance, Dr Mwigulu Nchemba, who signed the agreement alongside AfDB country manager for Tanzania, Ms Patricia Laverley, says construction of Phase 2 of the SGR is important in developing transport in the country, as well as for strengthening relations between Tanzania and the Democratic Republic of Congo and Burundi.
Additional Phase 2 sections include the 317km Kaliua – Mpanda – Karema and 356km Isaka – Rusumo – Kigali lines. Feasibility studies and preliminary design of these sections have been completed.
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