Sh146bn Chinese grant to boost infrastructure

Finance and Planning ministry permanent secretary Dotto James

What you need to know:

  • Finance and Planning ministry’s permanent secretary signs agreement with Chinese envoy to Tanzania in the city

Dar es Salaam. Tanzania has signed a Sh146.47 billion grant for two major infrastructure projects.

Finance and Planning ministry permanent secretary Dotto James inked the deal on behalf of the Tanzanian government while China’s ambassador to Tanzania Wang Ke on signed on behalf of her country.

Speaking after signing event, Mr James clarified that the cash was a grant and not a loan and that it would be spent on two infrastructure projects, including the construction of a national university of transport to be constructed at Mabibo in Dar es Salaam at a cost of $62 million, equivalent to Sh138.3 billion.

In the second project, a total of Sh3.2 billion will be spent on a feasibility study of a new Standard Gauge Railway (SGR) project.

Mr James explained that currently the construction of SGR had already started and would be done in two phases--starting from Dar es Salaam to Morogoro and from Morogoro to Makutopora in Dodoma.

According to Mr James, the feasibility study, which would be carried out by China, would involve other phases of the SGR construction including starting from Dodoma to Tabora to Mwanza and from Tabora to Kigoma via Kaliua.

“China has assisted us in many projects including the Chalinze Water Project, the National Stadium, Morogoro Agricultural Centre, the Centre for Training and Cardiac Surgery, Mwalimu Nyerere International Conference Centre, drug aids and medical equipment,” said Mr James

For her part, Ms Wang Ke said her government hoped to see that the grant helped strengthen development and assist Tanzania in getting development quickly.

She added that China would keep cooperating with Tanzania in implementing various development projects that would benefit Tanzanians and sustain bilateral relations between the two.