Tanzania gets Sh110bn loan for road

What you need to know:

  • The money will be for the upgrading of the 85.5km road linking Nyahua to Chaya.
  • The minister for Finance and Planning, Dr Phillip Mpango, represented Tanzania at the signing ceremony while the Kuwait Fund for Arab Economic Development was represented by its deputy director general, Mr Hamad Al-Omar.

Dar es Salaam. The government and the Kuwait Fund for Arab Economic Development yesterday signed an agreement in which the latter will give Sh109.69 billion in loan to Tanzania.

The money will be for the upgrading of the 85.5km road linking Nyahua to Chaya.

The minister for Finance and Planning, Dr Phillip Mpango, represented Tanzania at the signing ceremony while the Kuwait Fund for Arab Economic Development was represented by its deputy director general, Mr Hamad Al-Omar.

The Nyahua to Chaya road in Kigoma is part of the 1,539-kilometre road network linking Dar es Salaam to Kigoma and running across three regions.

“The goal of the project is to increase traffic movement and capacity between Dar es Salaam port and Kigoma as well as to Burundi and Eastern Democratic Republic of Congo,” said Dr Mpango.

It will also increase multimodal transport options in the region and reduce transport time and cost along the entire central corridor.

Specifically, the Sh109.69 billion will be spent on demonstrating civil works of the project including site preparation, earth works, drainage, pavement layers, bridges, safety provision and signage.

It will also be used in consultancy services for the supervision of construction works and technical assistance for feasibility studies and updating detailed design and tender document.

“I am quite sure that the loan agreement will generate a smile for the people and business community along the corridor thus linking production areas to markets,” he noted.

In his remarks, Mr Al-Omar said the loan will be repaid in a period of 27 years. The maturity time has a grace period of five years.