TRADE and Development Bank (TDB) has pledged a 400 million US dollar (about 900bn/-) soft loan to the government for construction of the central Standard Gauge Railway (SGR) and gas plant in Kilwa District, Lindi Region.
TDB President Admassu Tadesse said yesterday that his bank has allocated 200 million dollars for the SGR and 200 million dollars for gas power plant.
Mr Tadesse met and discussed various issues related to the two projects with Finance and Planning Minister Dr Philip Mpango as well as Energy Minister Dr Medard Kalemani.
He said Tanzania is one of the bank's big stakeholders, adding that TDB is ready to cooperate in the execution of various development projects in the country.
"Tanzania is one of our main stakeholders, it's seventh in the list of 37 countries that own shares in TDB, with 6.4 percent stake," he noted.
According to Mr Tadesse, the bank is implementing various development projects in the country and that by 2018, 11 projects, which are associated to the bank, are being implemented.
He said some of the projects are implemented in the agriculture, financial and banking sectors as well as electricity, infrastructure and industries. So far, the projects under the bank are worth 284.6 million dollars.
"We have other projects worth 157 million dollars that the bank has already approved. Also other 660 million dollars have been allocated for Tanzania to boost agriculture, trade, infrastructure, energy, chemical and petrol sectors," he said.
Dr Mpango said Tanzania welcomes TDB decision to provide the soft loan to support development projects, which basically aim at boosting the country's economy and Tanzanians' welfare.
He said his office will ensure the negotiations on the soft loan between Tanzania and TDB are successfully concluded within the next three months.
Dr Kalemani said the Kilwa gas plant is designed to generate 318 MW and that it will increase availability of power in the country. He said so far, the country generates 1,500MW.
"We are still connecting villages to electricity, so far we have 176 villages that need electricity and 120 of them are located in islands, TDB has agreed to support the construction of hydropower projects and each will generate 10MW," said Dr Kalemani.
TDB also known as Eastern and Southern African Trade and Development Bank, is an African regional development financial institution established in 1985.
The Bank's mandate is to suppliersfinance and foster trade, socio-economic development and regional economic integration through trade financing, project and infrastructure, funds management and business advisory services. TDB is owned by 22 African countries, two countries outside African