Tanzania signs a USD 1.9 billion contract to complete the third phase of the SGR Railway.

Posted on : Tuesday, 1st February 2022

Tanzania's President, Samia Suluhu Hassan, observed the signing of the agreement for the building of the third section of the Standard Gauge Railway (SGR) linking Makutupora to Tabora on December 28, 2021.

 

Tanzania Railways Corporation (TRC) and Yapi Merkezi of Turkey inked the deal during a ceremony at the State House in Dar es Salaam.

 

The section's construction, which includes 294 kilometers of mainline and 74 kilometers of intersections for a total of 368 kilometers, will cost TZS 4.41 trillion.

 

President Samia stated that the administration would look into every feasible option to get concessional loans to finance the project, pointing out that such projects cannot be funded just through local taxes.

 

She emphasised that the government has already invested TZS 14.7 trillion in the SGR project and that the money spent will be useless until the government borrows to complete the project.

 

Furthermore, President Samia directed the Ministry of Works and Transport, through TRC, to finish the procurement process for the building of the remaining portions of the Tabora-Isaka and Tabora-Kigoma railway lines.

 

She also encouraged numerous financial organisations from across the world to participate in financing the building, which would assist connect Tanzania with adjacent countries by using the Port of Dar es Salaam to carry cargo goods.

 

Tanzanian Railways Standard Gauge (SGR) Tanzania's government is actively extending the country's rail network by building the Standard Gauge Railway (SGR) along the central corridor.