Friday 7 September 2012

Tanzania secures 1.8tri/- loans from China

Tanzania has secured a 1.2 billion US dollars loan to finance the construction of a 230-kms natural gas pipeline linking Mtwara gas fields and Dar es Salaam.


Prime Minister Mizengo Pinda

The agreement to that effect was signed in Dar es Salaam on Wednesday and witnessed by Prime Minister, Mr Mizengo Pinda and the visiting Chinese Vice Premier, Mr Hui Liangyu, at the Prime Minister’s Office in Dar es Salaam. The agreement was signed by the Finance Minister, Dr William Mgimwa and the Deputy President of EXIM Bank of China, Mr Li Jun.

Other documents initialed by the two parties are exchange of letters on the project of office building for Ministry of Foreign Affairs and International Cooperation and amemorandum of understanding (MoU) on agricultural cooperation. He fourth document was an MoU between the Government of Tanzania and China Merchants Holdings (International) Company.

Speaking before the signing, Mr Pinda said Tanzania wants to get advantage of the offer by China recently providing an outlay of 20 billion US dollars credit line to African countries to assist them in developing infrastructure, agriculture, manufacturing and medium-size enterprises.

The Chinese offer was announced by President Hu Jintao during ministerial meeting of the Fifth Forum on China-Africa Cooperation (FOCAC) held in Beijing from 19 – 20th July 2012. Prime Minister Pinda said Tanzania has drawn a list of priority projects and it will be delivered to China to be able to secure funds.


He thanked the Chinese government and the people of China for the invaluable support and assistance extended to Tanzania over the years. On his part, the Chinese Vice Premier described the relationship between the two countries as “all weather friendship” and pledged that his country will continue to provide financial support to Tanzania’s priority projects.

Mr Hu LIangyu arrived on Wednesday and paid a courtesy call on president Jakaya Kikwete. He is visiting Zanzibar on Friday and leaves on Saturday. He had come from Brazzaville. It is the first visit to Africa by a high ranking official after the FOCAC meeting.


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