Tanzania signs a US $64.4m grant with China for two major infrastructure projects in the country.Finance and Planning Ministry Permanent Secretary Dotto James inked the deal on behalf of the Tanzanian government while China’s ambassador to Tanzania Wang Ke signed on behalf of China.
Speaking after signing event, Mr James clarified that the cash was a grant and not a loan. The funds are meant to be spent on two infrastructure projects, that includes the construction of a national university of transport to be constructed at Mabibo in Dar es Salaam at a cost of US $62m.
On the second project, a feasibility study worth US $1.4m will be conducted on a new Standard Gauge Railway (SGR) project.
According to James construction of SGR has already kicked start and the project will be done in two phases. Phase I of the project will begin from Dar es Salaam to Morogoro while phase II will cover from Morogoro to Makutopora in Dodoma.
According to Mr James, China will conduct the feasibility study. The study will involve other phases of the SGR construction including starting from Dodoma to Tabora to Mwanza and from Tabora to Kigoma via Kaliua.
“China has assisted us in many projects including the Chalinze Water Project, the National Stadium, Morogoro Agricultural Centre, the Centre for Training and Cardiac Surgery, Mwalimu Nyerere International Conference Centre, drug aids and medical equipment,” said Dotto James.
According to Ms Wang Ke said her government hoped to see that the grant helped strengthen development and assist Tanzania in getting development quickly.
“China will keep cooperating with Tanzania in implementing various development projects that would benefit the country and sustain bilateral relations between the two,” said Ms Wang Ke.