11 July 2018

Tanzania: Nairobi-Based Bank to Lend Tanzania $400m for SGR Railway, Gas Plant

Dar es Salaam — The Trade and Development Bank (TDB) will give a $400 million soft loan (about Sh900 billion) to Tanzania for the construction of the standard gauge railway (SGR) and a gas power generation project in Kilwa.

This was disclosed in Dar es Salaam on Tuesday by Mr Admassu Tadesse, president of the bank headquartered in Nairobi, Kenya, when he met and held talks with the minister for Finance and Planning, Dr Philip Mpango, and the minister for Energy, Dr Medard Kalemani.

Mr Tadesse clarified that his bank had allocated $200 million for the construction of SGR and the same amount for the Kilwa gas power plant in Lindi Region.

"Tanzania is a big stakeholder of this bank as it holds the seventh position from among 37 countries and institutions with shares in the bank, whereby it has 6.4 per cent of its share," said Mr Tadesse.

He elaborated that until March, 2018, his bank had implemented 11 development projects in Tanzania in the sectors of trade, banking and finance services, energy and improving infrastructures and industries worth over $284.6 million.

"We have other projects endorsed by the bank. Those projects are estimated to be valued at $157 million and another $660 million that is planned to be given to Tanzania for implementing various projects in the sectors of trade, works, petroleum chemicals and energy," he added.

For his part, Dr Mpango lauded the bank for continuing to strengthen itself in terms of capital and performance, saying Tanzania had received with open hands the bank's pledge to participate in the construction of the nation's prioritized projects including the construction of SGR and the Kilwa gas power generation project that would speed up the country's economic growth.

The minister for Energy, Dr Medard Kalemani, said the Kilwa gas power generation project would have a capacity of generating 318 megawatts and would increase the country's power generation rate that had currently reached to 1500 megawatts.

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