Kuwait and Tanzania initial KD 15 mln loan agreement

Nyahua-Chaya Road Project to be finalized

22/03/2017 05:41 AST

A loan agreement was signed today in Dar es Salaam between the United Republic of Tanzania and Kuwait Fund for Arab Economic Development, whereby Kuwait fund will make a loan of Kuwaiti dinars 15 million (equivalent to about $51.0 million), to assist in financing Nyahua-Chaya Road Project in Tanzania. It is worth mentioning that the fund depends exclusively on its own resources in providing its loans and development assistance.

The loan was made in pursuance of an initiative by His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, the Amir of the State of Kuwait announced at the 3rd Africa-Arab Summit held in Kuwait during the period Nov 19-20, 2013 to grant concessionary loans to African countries to the tune of one (1) billion US dollars spread over the succeeding five years for financing development projects in the African countries.

The loan agreement was signed on behalf of the United Republic of Tanzania by the Honorable Dr Philip I. Mpango, Minister of Finance and Planning (MP) while Hamad Al-Omar, Deputy Director-General of the Kuwait Fund for Arab Economic Development signed the loan agreement on behalf of the Kuwait fund. H.E. Jassem Al Najem, Ambassador of the State of Kuwait to the United Republic of Tanzania and Ayad Al Gharaballi, Regional Manager for Central East & South African countries at the Kuwait fund attended the signing ceremony.

The project is designed to contribute to the increasing demand for transport of passengers and goods on the central corridor between Dar es Salaam and Kigoma, thereby promoting trade activities with the neighboring countries, and thus contributing to the economic and social development in the project area. The project also aims to reduce vehicle operation and road maintenance costs, as well as travel time.

The project involves the construction of Nyahua-Chaya Road Section of the Corridor Dar es Salaam-Kigoma with a length of about 85 kms, so as to be upgraded to bituminous standard, consisting of two lanes with a width of about 6.5 m, and a shoulder of 1.5 m in each side. The aforementioned loan represents the thirteenth loan made by the fund for financing of projects, as Kuwait fund has already made twelve loans to the United Republic of Tanzania in different sectors with a total amount of about KD 60.47 million, or about $205.6 million. Furthermore, the fund has extended technical assistances and grants with a total amount of KD 656,000, or about $2.2 million.

Arab Times