Africa-Press – Tanzania. THE government and African Development Bank Group (AfDB) have signed a soft loan agreement of 268.18bn/- to finance road upgrading projects at the Mtwara Corridor.
Permanent Secretary in the Ministry of Finance and Planning Mr Emmanuel Tutuba and AfDB Deputy Director General East Africa Region, Dr Abdul Kamara signed the deal in Dar es Salaam yesterday, both insisting that once the project is completed, it will bring major economic growth in the country.
Speaking shortly after the signing ceremony, Mr Tutuba said the fund will be used for the construction of the Mnivata, Newala -Masasi road in Mtwara region.
Tutuba said the signed loan agreement is in line with the Third Five-Year Development Plan (FYDP III) and part of broad agenda of the sixth phase government, that seeks to build a competitive and industrial economy for human development through improving productive infrastructures, reliable access to energy, strengthening the business and investment enabling environment as well as education and training systems.
Further, he said the project will integrate and open regional markets between Tanzania, Mozambique and Malawi and facilitate various economic activities for the southern regions.
In addition, Tutuba said through the project Tanzania will become a trade and logistical hub for Eastern and Southern Region.
He said the overall development objective of the Mnivata–Newala-Masasi Road Project is to enhance accessibility of the Mtwara Development Corridor, and foster capital development of the region through improved access to the Mtwara Port and improved transport connection with the hinterland via Masasi.
“Specifically the project will provide all-weather transport connection of the Mtwara Port with the hinterland to facilitate timely export of cement, cashew nuts and other agricultural produce.
It will enhance access by road to the mineral rich Mtwara region to facilitate exploration of gas, production and transportation of industrial manufactured goods to the market,” said Tutuba.
He added that the project will contribute to the country’s social and economic development by reducing travel time and vehicle operating costs as well as improving road traffic safety along the Mtwara Development Corridor.
PS said the signing ceremony will increase the value of the existing African Development Bank’s public sector portfolio in Tanzania from approximately 2.27 billion US dollars to 2.39 billion US dollars, which indicated the continuous cooperation between Tanzania and the AfDB, since 1971.
He said since that time, a large number of projects focusing on reducing poverty, modernising the systems of financial and economic governance, supporting the development of a resilient private sector and improving the quality of life for people in Tanzania have been implemented.
“The bank remains a reliable partner even during the most challenging times and we are looking forward to continuing working together for our mutual benefit,” said Tutuba.
However, Tutuba said the total cost of the project is about 119.65 million US dollars, which will be jointly financed by the AfDB and the government. The bank will provide 116.34 million US dollars and the government will contribute the 3.31 million US dollars.
On his part, AfDB Deputy DG, Dr Kamara said the implementation of the project will involve construction of 160 kilometres of Mnivata – Newala – Masasi Road including construction of 84m bridge at river Mwiti.
Dr Kamara said beside road construction the project design has included provision of complementary activities such as the construction of three bus terminals and supply of two ambulances and two X-ray equipment for health centres in three districts along the project area.
Further he said the project will provide various advisory services including on road accident emergency response and project management.
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