TANZANIA and the African Development Bank (AfDB) yesterday signed a concessional loan agreement worth 1.14tril/-to finance implementation of three priority projects.
The projects are construction of Msalato International Airport in Dodoma Region, the Bagamoyo- Horohoro/Lungalunga-Malindi road project, and Good Governance and Private Sector Development Program (GGPSDP) phase II.
The agreements were inked in the commercial capital Dar es Salaam between Permanent Secretary in the Ministry of Finance and Planning, Doto James, and the AfDB Country Manager for Tanzania, Alex Mubiru.
Speaking after the signing ceremony, Mr James said the Msalato project will receive 271.63 million US dollars, Bagamoyo-Horohoro project to receive 168.76 million US dollars and GGPSDP will get 55.2 million US dollars.
“The signing of these agreements will enable the bank to provide funds to the government through the following windows: AFDB (US dollars 198.63 million), African Development Fund (US dollars 246.96 million) and African Growing Together Fund (Chinese government fund administered by the bank)– US Dollars 50 million),” he explained.
Mr James said the construction of Msalato Airport and upgrading of the Bagamoyo- Pangani road section to bitumen standard will help the government to bridge the infrastructure gap for accelerating socioeconomic development, poverty reduction and boost tourism.
He said the implementation of the projects will enhance transport connectivity and unleash gains from economic integration for Tanzania with neighbouring countries and beyond.
On GGPSDP, he highlighted that the program will address challenges identified in the Blueprint for regulatory reform to improve the business enabling environment, particularly in tax, business registration and licensing reforms.
“It will build on the on-going efforts to improve budget credibility, public sector oversight, accountability, transparency and institutional capacity to efficiently and effectively manage public resources,” he remarked.
On his part, Mr Mubiru said the three projects are also consistent with their corporate priorities of having a more integrated continent of modernizing the system of financial and economic governance of supporting the development of a resilient private sector and improve the quality of lives of the people.
“All of these three projects are aligned with Tanzania’s vision 2025 objective, which is to awaken, coordinate and direct 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,” said Mr Mubiru.
He said much like the government, the AfDB believes that an expanded air transport network in Dodoma, together with the on-going high-speed railway construction on the central corridor, is necessary infrastructure investment to help unlock and disperse spatial development in the countryside.
Mr Mubiru further said on the upgrading of the Bagamoyo-Horohoro/Lungalunga-Malindi road project that it is a key component of the East African transport corridors network, connecting Tanzania and Kenya, where producers, manufacturers and traders will be able to move goods more quickly and cheaply.
“Besides road construction, the project will provide complementary support, including the construction of a bus terminal and tree planting, training to unemployed youth, various advisory services, road accident emergency response and project management.”
Tanzania National Roads Agency (TANROADS) Chief Executive Officer (CEO), Eng Patrick Mfugale said the construction of Msalato Airport is expected to take three years, which upon completion will have an annual capacity of approximately 50,000 aircraft and about 1.5 million passengers.
