M a r k e t N e w s
Tanzania: Kuwait Grants $48 Million Loan for Central Corridor Road Project
Posted on : Thursday, 23rd March 2017
THE Kuwait government through Kuwait Fund for Arab Economic Development has released a loan of 109bn/- to finance Nyahua- Chanya road project, which will boost economic development through the central corridor.
Speaking to reporters shortly after the signing ceremony in Dar es Salaam yesterday, the Minister for Finance and Planning, Dr Philip Mpango, expressed gratitude to the Kuwait government, and said the road is important because it links Tanzania and other countries.
Upon its completion, the 85-kilometre section will ease transportation of cargoes from the Dar es Salaam port to nearby countries, and hence boost the country's economy.
"The road corridor starts in the Dar es Salaam city, passes through to Kigoma and link Tanzania with other landlocked countries surrounding Tanzania, therefore, upgrading of the section will increase traffic movement and capacity between Dar es Salaam port and Kigoma as well as Burundi and Eastern DRC," the minister said.
According to him, the objective of the project also is to increase multimodal transport options in the region and reduce transport time and cost along the entire central corridor. The loan agreement signed consists of three parts, including civil works, consultancy services and technical assistance.
Expounding further, Dr Mpango said the fund is another commitment of the management of the Kuwait fund for Arab Economic Development to continue supporting the fifth phase government in achieving its economic developments.
Deputy Director General of the Kuwait Fund for Arab Economic Development, Hamad Al-Omar was in line with the commitment of the Amir of the State of Kuwait, Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah made during the 3rd Africa-Arab Summit to grant concessionary loans to African countries to finance development projects.
Mr Al-Omar was optimistic that Nyahua-Chanya road will link Tanzanian products and markets in other countries.
"The project is designed to contribute to the increased demand for transport of passengers and goods on the central corridor, thereby, promoting trade activities with the neighbouring countries, and therefore contributing to the economic and social development," he said.
Source : allafrica.com
