Trade and Development Bank chief hints at another mega loan for Dar

27Nov 2019
The Guardian Reporter
Dodoma
The Guardian
Trade and Development Bank chief hints at another mega loan for Dar

TRADE and Development Bank President, Dr Admassu Tadesse has hinted that the regional financier will soon released another multi-billion shillings concessional loan to Tanzania to finance its ongoing mega infrastructure projects.

Dr Tadesse said in the new capital on Tuesday evening after meeting with Minister for Finance and Economic Planning, Dr Philip Mpango that the Nairobi based regional bank (formerly known as PTA Bank), has confidence in President John Magufuli’s administration hence a new round of loan is on its way.

“Tanzania’s economy continues to perform better which encourages us to support the growth trajectory with funding targeting major infrastructure projects,” Dr Tadesse noted. TDB gave the country a U$1 billion soft loan earlier this year to back construction of the ongoing standard gauge railway from Dar es Salaam to Mwanza which is already approaching Dodoma.

He said the funding will also help implement a hydro-electric power project along River Ruhudji in Njombe region. “We will soon release more funding to Tanzania because we are encouraged by the progress being made,” he added.

Speaking after his meeting with the TDB President, Dr Mpango said the regional financier has been a good development partner for the country thanks to its soft loans. “In addition to the U$1 billion that we received in August this year, we expect to get another U$300 million,” Dr Mpango said.

He said the new loan will finance construction work of SGR along the Central Railway Line but also finance the Njombe and other power projects as the country gears towards becoming energy self sufficient.

Permanent Secretary at Ministry of Energy, Dr Hamis Mwinyimvua said the TDB’s loan will help bridge the gap of U$460.2 million Ruhudji power project with capacity of 358 megawatts. “Of the amount, U$407 million will be spent on buying and installing generation equipment while U$53 million will go towards construction of 170 kilometres of transmission lines,” Dr Mwinyimvua stated while stressing that the government’s target is to generate 10,000MW of power by 2025.

Tanzania Railways Limited’s CEO, Masanja Kadogosa said construction work of the Dar es Salaam to Morogoro SGR line has reached 72 percent. He thanked TDB for showing willingness to provide funding to cover construction of the SGR line from Mwanza to Isaka.Tanzania is one of the 31 TDB shareholders with 8.33 percent of shares.