The Tanzanian government has secured funding for the SGR section linking Tanzania and Burundi, involving three international financial institutions. The TRC oversees the construction, which is part of a larger railway project. Significant progress has been made on various sections, and the government anticipates increased revenues once operations commence.
The Government of Tanzania has successfully secured funding for the construction of a section of the Standard Gauge Railway (SGR) connecting Tanzania to Burundi. The Tanzania Railways Corporation (TRC) is managing the ambitious 2,561-kilometer project, which aims to link the Indian Ocean port of Dar es Salaam to various neighboring countries, including Burundi, DR Congo, Rwanda, and Uganda. The construction from Uvinza in Kigoma to Musongati in Burundi is set to receive financial backing from Standard Chartered, China Export and Credit Insurance Corporation (Sinosure), and the African Development Bank (AfDB). Acting TRC Director General, Mateshi Tito, announced on November 15 that contracts will soon be finalized to commence this segment of the railway. Moreover, he provided updates on other ongoing segments, revealing that the Makutupora-Tabora lot is approximately 14.53 percent complete, while the Isaka-Mwanza section has advanced significantly to 60.62 percent. In discussions regarding investment opportunities in the SGR project, Mr. Tito mentioned interest from both local and foreign entities in acquiring SGR locomotives and engaging in the Mtwara-Mbamba Bay SGR project. Public Investment Committee Chairman, Mr. Augustine Vuma Holle, expressed satisfaction regarding the expenses involved, noting that over $10 billion has been allocated thus far. Mr. Holle emphasized the revenue potential that will increase significantly once freight services become operational in February. The Deputy Minister for Transport, Mr. David Kihenzile, acknowledged the positive reception of the SGR project’s progress by the Public Investment Committee. He reaffirmed the government’s commitment to diligently implement this vital infrastructural project, underscoring its significance for the region’s economic development.
The Standard Gauge Railway (SGR) project is a pivotal infrastructure initiative in East Africa, aimed at enhancing rail transport connectivity within the region and facilitating trade. The railway line stretches from the Indian Ocean port of Dar es Salaam and intends to reach various inland destinations, including Burundi and other neighboring countries. The initiative is also designed to operate freight and passenger services, which are crucial for boosting the economy and improving transport efficiency. The financial backing from international institutions plays a vital role in progressing this large-scale project.
In conclusion, the Tanzanian government’s successful efforts in securing funding for the SGR extension to Burundi represent a significant advancement in regional infrastructure. The collaboration with international financial institutions demonstrates a commitment to enhancing connectivity and economic growth in East Africa. As construction progresses, the project’s potential to generate substantial revenue and support regional trade will be closely monitored, with high expectations for the upcoming operational freight services.
Original Source: www.thecitizen.co.tz
