News Column

Dar Set for Bigger Loans As AfDB U.S Status

July 25, 2014



AFRICAN Development Bank (AfDB) has elevated the status of Tanzania to enable it get bigger and more prestigious loans than in the past.

The AfDB's Resident Representative in Tanzania, Ms Tonia Kandiero, announced saying that since Tanzania became members of the bank, it has been receiving small loans for supporting various projects in the region due to its economic strength.

She said the status of Tanzania in the bank has been upgraded due to its economic growth, creditworthiness and ability to pay and fulfil the conditions that go with this change of personality.

Ms Kandiero announced that at the ceremony to lay the foundation stone for the construction of the Mangaka- Mtambaswala Road to tarmac level, which is now complete.

All the roads are in Mtwara Region and the chief guest at the ceremony was President Jakaya Kikwete, who is in the region for a twoday tour, arriving from Ruvuma where he had been on a six-day visit.

AfDB is a regional multilateral development finance institution established to contribute to the economic development and social progress of African countries that are the institution's Regional Member Countries (RMCs).

The AfDB Representative said that before the status upgrading, Tanzania had been applying for loans from the bank's development fund and not huge development loans.

She said that since Tanzania became members, they have been able to secure loans worth one billion US dollars. AfDB and JICA are partnering with the government of Tanzania to construct roads under the road fund project.

Under that agreement, AfDB provides 64.79 per cent, JICA 31.83 per cent while the government provides 2.39 per cent. The project involves rehabilitation of a 55.1 kilometrelong road between Masasi and Mangaka and a portion of the Mtwara Corridor in southern Tanzania.

The road section is generally impassable during rainy seasons, impeding the movement of people and goods. The road, covering a 65.5 kilometre-distance between Mangaka and Mtambaswala on the Tanzania-Mozambique border, is constructed by a Chinese firm at the cost of 59.66bn/- for a period of 28 months.

The completed stretches are Mangaka-Masasi with 55.1 kilometres. The road was constructed by the company from Japan under three phases at cost of 54.8bn/-.

The road is part of Masasi- Mangaka-Tunduru Road. Earlier yesterday, President Kikwete launched a water project for Nalasi ward in Ruvuma, 12 kilometres from the Tanzania-Mozambique border.

The project is among those funded by the World Bank and is set to benefit 11,655 people in three villages. The project will provide 200,000 litres of water, which will be available in 37 water distribution stations for it to be distributed to large number of people.

More than 14.5 kilometres of water pipes have been put in place. The project was handled by the Tunduru Council at a cost of 445m/-.


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Source: AllAfrica


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