Tanzania: Minister Advises Contractors On Bank Loans

INDUSTRY and Trade Minister, Innocent Bashungwa has challenged contractors to banks loans to start and complete the project implementation on time.

He said most contractors in the country depend on release of the initial payments to start, a reason for the delays in the completion of the projects.

Mr Bashungwa made the remarks in Shinyanya on Thursday while addressing a forum of contractors, suppliers and business people from Shinyanga, Geita, Tabora and K igoma regions organised by CRDB Bank.

The forum aimed at providing awareness on the correct us of the loan funds from banks for the execution of various construction projects.

He said contractors form an important segment in the implementation of various infrastructure projects in the country, thus enhancing their efficiency is of paramount by sourcing finances from lending facilities.

He added, lack of capital is one of the biggest challenges that contractors face in the country and failure to complete the projects on time.

"CRDB has brought closer the opportunity to access loans for you to start and complete the projects on time," he said adding that our expectation this forum is the change on the way contractors implement the projects by sourcing financing from CRDB.

He said CRDB has been supporting government initiatives in the implementation of various infrastructure projects necessary in speeding up economic growth.

For example, the participation of the bank in the implementation of the Standard Gauge Railway (SGR), the 2115 megawatts Nyerere Hydropower project and rural electrification through Rural Energy Agency (REA).

Tabora Regional Commissioner and chairman of the Lake Zone regions, Aggrey Mwanri urged contractors executing various development projects to use the CRDB loan facility in order to speed up project implementation.

The bank's Chief Commercial Officer (CCO), Dr Joseph Witts said the forum is an opportunity to bring together contractors, bidders and business people to give them tips on how to access loans to support their projects.

CRDB Bank also offers overdrafts and investment loans to finance the acquisition of construction equipment, vehicles, machines, buses and other assets and other financing facilities such as bid guarantees, advance payment guarantees, performance guarantee, and letter of credit.

"Our credit facilities are granted at attractive rates, shortest turnaround time with flexible conditions to suit suppliers/contractor's needs," he said.

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