Africa Biz Construction and Business News
Standard Chartered Bank Group Loans US $1.46B to Tanzania for Railway Project
September 22, 2018
The Morogoro-Dodoma railway project in Tanzania can proceed further, thanks to a recently received $1.46 billion concession loan from London’s Standard Chartered Bank Group.
Tanzania’s Finance Minister, Dr. Philip Mpango, says the new funds will help pay for the 430 kilometer segment of the new standard gauge railway route connecting Morogoro and Makutupora. Other funds are still needed and being sought, Dr. Mpango said, “from other partners to fund the remaining sections that will see us extend the line to the Rwandan border.”
According to the government, the project is now over 75% funded out of its total estimated cost of US $1.9 billion. A joint venture between Mota Engil of Portugal and Yapi Merkezi of Turkey will be building the project.
Construction is already under way on the new segments funded by this new installment. Tanzania has also already received its first shipments of 7,100 tons of rails from Japan for the first phase. Contractors are also working on precast girders, leveling of railway track surfaces and building of concrete sleepers for the project.
When the railway is complete, it will be run as an electric route, with speeds up to 160 km per hour for passenger trains and 120 km per hour for cargo trains.
Copyright: North America Procurement Council Inc., PBC