Prof Palamagamba Kabudi, the minister for Foreign Affairs and East African Co-operation signed for the government while Zhou Liujun, vice-chairman of the China International Development Cooperation Agency (CIDCA) signed for his country.
A Foreign Ministry statement asserted that the signing was done in Beijing shortly after discussions between Prof Kabudi and Wang Yi, State Councillor and Foreign Minister of the People's Republic of China.
Priority areas to be covered by the loan include conducting feasibility study on expansion of the Jakaya Kikwete Cardiac Institute (JKCI) with the aim of making it a center of excellence in cardiac treatment in Sub-Saharan Africa.
The list also includes construction of power dams—Ruhudji (358MW) and Rumakali (222MW) in Njombe and Iringa regions, a feasibility study for the construction of the central railway at international standard gauge and repairing the Tanzania Zambia Railway (TAZARA).
China has also pledged to support construction of relevant infrastructures in the country’s capital—Dodoma.
Prof Kabudi commended the Chinese government, underlining that Tanzania is determined to cement existing bilateral ties for mutual benefit.
He applauded the government of China in its collaboration with African countries for coming up with a working strategy that identifies ten priority areas to be developed, including the industrial sector, infrastructures, improving the business environment as well as cooperation in security matters.
Prof Kabudi commended China for setting up plans to implement the Beijing Agreement 2019 – 2021 which includes construction of industrial parks, transport and communication, energy and establishment of a special program for construction of vocational training colleges.
He said the colleges are essential for producing skilled workforce for the needs of industries that are now coming up.
Minister Wang hailed existing bilateral relations with Tanzania, noting that Tanzania is a true and all time friend of China.
Earlier, Prof Kabudi attended a conference which brought together 53 foreign ministers from African countries and Chinese financial institutions, including the China-Africa Development Fund (CADFund), Exim Bank of China and the China Development Bank.
Delegates discussed how the countries will spent more than US $ 60 billion promised by China during the Forum on China-Africa Cooperation (FOCAC) in Beijing, September 2018.
The chief economist at the China Development Bank, Liu Yong said China is optimistic that African countries will enhance their rates of economic growth. The Chinese authorities are ready to support economic development in Africa, the financial adviser underlined.