Tanzania Secures Funding for Standard Gauge Railway to Burundi
The Tanzanian government has secured funding for the Standard Gauge Railway linking Tanzania to Burundi after concluding discussions with three international financial institutions. The Tanzania Railways Corporation oversees this extensive project, aiming to enhance connectivity in East Africa. The operational railway segment is expanding with plans to boost revenue significantly once freight services commence in February.
The government of Tanzania has announced that it has successfully secured funding for a section of the Standard Gauge Railway (SGR) that will connect Tanzania to Burundi. Recently, officials concluded negotiations with three international financial institutions that will provide financing for the construction from Uvinza in Kigoma, Tanzania, to Musongati in Burundi. The Tanzania Railways Corporation (TRC) is managing the overall construction of a 2,561-kilometer railway line intended to link the Indian Ocean port of Dar es Salaam with Mwanza on Lake Victoria and eventually extend to Burundi, the Democratic Republic of the Congo, Rwanda, and Uganda. Currently, the operational railway section runs between Dar es Salaam and Dodoma, passing through Morogoro, while additional segments are still under development. Mateshi Tito, the acting director-general of TRC, announced on November 15 that contracts with Standard Chartered, China Export and Credit Insurance Corporation (Sinosure), and the Africa Development Bank (AfDB) will soon be finalized to initiate construction of the Burundi link. While the exact funding amount has not been disclosed, it is anticipated that significant progress will follow this financing agreement. Mr. Tito also provided updates on other railway sections, noting that ongoing construction was progressing well. The Makutupora-Tabora section was estimated to be 14.53 percent complete as of October, while the Tabora-Isaka segment was at 6.14 percent completion. The Isaka-Mwanza section was reported at 60.62 percent complete, and the Tabora-Kigoma section was at 6.68 percent. Discussions continue with multiple local and international investors interested in participating further in SGR projects, including locomotives and the Mtwara-Mbamba Bay railway line. Augustine Vuma Holle, the chairperson of the Parliamentary Public Investment Committee, expressed satisfaction regarding the spending of approximately $10 billion on the SGR project thus far. Mr. Holle commented on the potential for tripling revenue once freight train services commence in February, citing a report indicating that over Sh20 billion had already been collected since the initiation of SGR passenger operations. He emphasized the dual-use nature of the railway, where freight transportation is expected to significantly contribute to revenue. Deputy Minister for Transport David Kihenzile conveyed his approval of the positive feedback received from the Public Investment Committee members, affirming the government’s commitment to diligently advancing this monumental SGR project.
The Standard Gauge Railway (SGR) is a significant infrastructure project in Tanzania aimed at modernizing railway transport and enhancing regional connectivity. This initiative will not only facilitate trade between Tanzania and its neighboring countries, including Burundi, but it also aims to boost economic growth through improved transportation efficiency. The construction and operation of the SGR are overseen by the Tanzania Railways Corporation (TRC), which is working towards establishing a comprehensive network that connects various key economic regions. The involvement of international financing institutions underscores the project’s importance and the collaborative efforts required to bring it to fruition.
In conclusion, the Tanzanian government’s recent announcement regarding the secured funding for the SGR section to Burundi marks an important milestone in the development of regional infrastructure. With the ongoing construction and eventual freight services set to enhance economic activity, the commitment of both local and international stakeholders bodes well for the realization of this ambitious rail network. The anticipated increase in revenue, especially from freight services, underlines the railway’s potential to transform transport logistics in the region.
Original Source: www.thecitizen.co.tz
