TANZANIA, KOREA INK SH359 BILLION PACT TO FINANCE DEVELOPMENT PROJECTS

Permanent Secretary of the Ministry of Finance,
Servacius Likwelile.

Tanzania has signed a three-year framework agreement of concessional loans with the Republic of Korea through Exim Bank amounting to 359b/- (USD 200 million) to finance various development projects.

The projects range from revamping of the Dar es Salaam sewerage system, to construction of the new Salender Bridge along with maritime development projects and support for the health sector in particular, supply of ambulances.

Briefing journalists mid this week in Dar es Salaam after signing the loan agreement, Permanent Secretary of the Ministry of Finance, Servacius Likwelile, said the loan will among other things, support government efforts towards poverty reduction.

“It will augment efforts to secure sustainable economic and social development,” the Permanent Secretary added.

Detailing, he said construction of the new Salender Bridge will cost 197.5bn/- (USD 110.033 million) and 82 per cent (163.4bn/-) of the amount will be covered by the concessional loan while the rest, 34.1bn/- (USD 19.001million) or 17.3 per cent, will be provided by the government of Tanzania, he said.

“The government appreciates this assistance because implementation of this project will help solve the worsening traffic jams along Ali Hassan Mwinyi road,” Likwelile added.

“The government also appreciates S. Korea’s willingness to support us in these other three projects because each of them will contribute to the wellbeing of Tanzanians,” Likwelile said.

Noting that this is not the first time for S. Korea to support Tanzania but rather highlighted that, S. Korea has been consistently supporting change and development of the country.

He cited establishment of vocational training centres, construction of the Malagarasi river bridge and associated roads as well as set up of the Kilimanjaro – Arusha transmission line (TEDAP).

He also mentioned, construction of the Muhimbili University of Health and Associated Sciences (MUHAS), improvement of the Dodoma water supply system, Iringa – Shinyanga backbone transmission investment (BTIP), supply of equipment to MUHAS (second phase) and construction of data centres for the National Identification Authority (NIDA).

The Guardian