Tanzania Secures Funding for Standard Gauge Railway Section to Burundi

Tanzania has secured funding for the Standard Gauge Railway (SGR) section connecting to Burundi, concluding discussions with three international financial institutions. The TRC reports that the SGR project, spanning 2,561 kilometers, is progressing well, with several segments under construction. As of now, $10 billion has been invested, and revenue expectations from freight services are promising, with services set to commence next February.

The Tanzanian government has announced the successful acquisition of funding for the construction of a section of the Standard Gauge Railway (SGR) that will connect Tanzania to Burundi. This follows discussions with three international financial institutions: Standard Chartered, China Export and Credit Insurance Corporation (Sinosure), and the African Development Bank (AfDB), which are set to facilitate the financing of the Uvinza to Musongati segment. The overall SGR project aims to establish a 2,561-kilometer railway line linking the Indian Ocean port of Dar es Salaam to Mwanza on Lake Victoria and extending towards neighboring countries. Currently, the SGR line between Dar es Salaam and Dodoma is operational, while other segments are under construction. Mateshi Tito, the acting director general of the Tanzania Railways Corporation (TRC), emphasized the positive trajectory of the project during recent discussions with the parliamentary Public Investment Committee (PIC). Although Mr. Tito refrained from disclosing the specific funding amounts, he noted that a contract would soon be signed to commence construction on the new section. The TRC has reported progress on other sections, with completion estimates indicating 14.53 percent for the Makutupora-Tabora lot, 6.14 percent for Tabora-Isaka, and 60.62 percent for Isaka-Mwanza, whereas the Tabora-Kigoma section stands at 6.68 percent. Furthermore, ongoing discussions are highlighting the interest of both local and foreign investors in the SGR project. The PIC chairman, Augustine Vuma Holle, reflected on the substantial investment to date, with $10 billion already spent on the SGR, and expressed optimism regarding increased revenue generation from freight services expected to commence in February.

The Standard Gauge Railway (SGR) project in Tanzania is a key infrastructure initiative intended to enhance connectivity within the East African region and expand trade opportunities. The railway network is being developed to facilitate efficient transportation of goods and passengers, with a focus on linking vital ports and neighboring countries. The involvement of significant financial institutions highlights the international interest in supporting Tanzania’s infrastructural development efforts and illustrates the potential economic benefits that improved rail connectivity could yield for the region. The government’s commitment to the SGR project is further evidenced by the operational status of certain sections and ongoing construction efforts across various other segments.

In conclusion, Tanzania’s government has successfully secured funding for the construction of a section of the SGR connecting to Burundi, indicating significant progress in the ongoing infrastructure project. The involvement of major financial institutions underscores confidence in the project, which aims to enhance regional connectivity and stimulate economic growth. Future developments, particularly in freight services, are anticipated to further elevate the revenue potential of the railway system, benefiting both the local and regional economy as the SGR project continues to evolve.

Original Source: www.thecitizen.co.tz