Tanzania receives $400m boost for SGR, natural gas projects

11Jul 2018
The Guardian Reporter
The Guardian
Tanzania receives $400m boost for SGR, natural gas projects

THE Trade and Development Bank, formerly PTA Bank, will give Tanzania $400 million (900 billion/-) to help finance the ongoing standard gauge railway (SGR) project and a liquefied natural gas (LNG) project in Kilwa, Lindi Region.

Speaking after holding talks with Finance and Planning Minister Dr Philip Mpango and Energy Minister Dr Medard Kalemani in Dar es Salaam yesterday, the bank’s chief executive officer Admassu Tadesse said the funds will be divided equally between the two projects.

According to Tadesse, Tanzania is one of the bank’s key stakeholders with its 6.4 percent shares ranking it 7th out of 37 countries with shares in the bank.

He said by March this year, the bank was financing a total of 11 development projects in regions across the country. The projects cover improvement of banking and financial services, energy provision, and industrial infrastructures, totaling $284.6 million in value.

“We will finance more projects worth $157 million, which have already been approved by the bank,” he added.
He also revealed that the bank will soon provide about $600 million for implementation of projects in the commercial agriculture, construction, energy, and oil sectors.

Dr Mpango said the bank’s support for strategic projects like the SGR and LNG plant in Kilwa is more than likely to boost economic growth.

The finance minister pledged to fast-track all official processes so that the funds are disbursed within three months.
According to energy minister Kalemani, once it becomes operational the LNG project will add 318 megawatts to the national electricity grid. The country’s total electricity output at present is 1500MW, he said.

He explained that 176 villages in the country don’t have electricity services, with 120 of them in islands.

“This bank has agreed to assist the government to take power services to the villages. New hydropower projects will be initiated with the capacity to produce 10MW each,” Kalemani said.

The Trade and Development Bank (TDB)’s mandate is to finance and foster trade, socio-economic development, and regional economic integration through trade finance, project and infrastructure finance, funds management, and business advisory services.

It is made up of 22 African countries and 13 investment institutions.