AfDB, Tanzania sign 495 mln USD loan agreements for mega projects

Source: Xinhua| 2020-03-14 00:27:49|Editor: yan
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DAR ES SALAAM, March 13 (Xinhua) -- The African Development Bank (AfDB) and Tanzania on Friday signed loan agreements to the tune of 495.59 million U.S. dollars for financing three mega projects.

The agreements were signed in the commercial capital Dar es Salaam between the AfDB Country Manager for Tanzania, Alex Mubiru and the Permanent Secretary in the Ministry of Finance and Planning, Doto James.

A statement issued by the Ministry of Finance and Planning said out of the total loan, 271.63 million dollars will finance the construction of Msalato international airport in the capital Dodoma, 168.76 million dollars for the Bagamoyo-Horohoro-Lungalunga-Malindi road project, and 55.2 million dollars for the good governance and private sector development program.

The statement said the construction of Msalato international airport and upgrading of the Bagamoyo-Pangani road section to bitumen standard will help the government to bridge the infrastructure gap for accelerating socio-economic development, poverty reduction and boost tourism.

The implementation of the projects will enhance transport connectivity and unleash gains from economic integration for Tanzania with the neighboring countries and beyond, said the statement.

The statement said the government will also implement good governance and private sector development program to enhance economic competitiveness and private sector investment in the country.

"The program will address challenges identified in the Blue Print for Regulatory Reform to improve the business-enabling environment, particularly in tax, business registration and licensing reforms," said the statement.

The statement added that the program will also build on the ongoing efforts to improve budget credibility, public sector oversight, accountability, transparency, and institutional capacity to efficiently and effectively manage public resources.

"All of these three projects for which we are signing various loan agreements are aligned with Tanzania's Vision 2025, the document currently guiding the country's socio-economic development efforts up to the year 2025," said Alex Mubiru, the AfDB Country Manager for Tanzania.

"As you are aware, the objective of that Vision is to awaken, coordinate and direct the Tanzanian people's efforts, minds and their national resources towards those core sectors that will enable the country to attain its development goals and withstand the expected intensive economic competition ahead," he added.