The Tanzanian government has secured funding for the construction of the Standard Gauge Railway (SGR) connecting Tanzania to Burundi. Funded by Standard Chartered, Sinosure, and AfDB, the project, overseen by TRC, aims to enhance transport links and is anticipated to boost revenue from freight services once operational.
The Tanzanian government has announced the procurement of funding for the construction of a crucial section of the Standard Gauge Railway (SGR) that will connect Tanzania to Burundi. This funding was secured following discussions with three international financial institutions, namely Standard Chartered, China Export and Credit Insurance Corporation (Sinosure), and the African Development Bank (AfDB). The Tanzania Railways Corporation (TRC) is managing the overall SGR project, which aims to create a 2,561-kilometer railway line from Dar es Salaam to Mwanza, with eventual connections to Burundi and beyond. According to the acting director general of TRC, Mateshi Tito, the upcoming contract signing will facilitate the commencement of construction from Uvinza in Kigoma, Tanzania, to Musongati in Burundi. Mr. Tito highlighted the progress of other segments, noting that various sections of the railway have recorded significant construction milestones. For instance, the Isaka-Mwanza section is reported to be 60.62% complete, while the Makutupora-Tabora lot stands at 14.53% completion. In a meeting with members of the parliamentary Public Investment Committee (PIC), Mr. Tito remarked on the ongoing interest from both local and foreign investors in various SGR projects. He revealed that a total of $10 billion has already been invested in the construction, leading to optimistic forecasts of a threefold increase in revenue once the freight train services begin in February. The dual-purpose railway system is expected to enhance the revenue generation, with freight transportation projected to account for the majority of the income.
The Standard Gauge Railway (SGR) project in Tanzania is an ambitious infrastructure initiative aimed at improving the country’s transportation network and enhancing trade links with neighboring countries. The railway line will radically shorten transit times and increase cargo capacity, which is vital for economic development in the region. With sections of the railway already operational between Dar es Salaam and Dodoma, ongoing development reflects the government’s commitment to facilitating regional trade and connectivity. The construction efforts are widely supported by international financial institutions which recognize the long-term economic benefits such projects can yield.
In summary, the Tanzanian government’s securing of funding for the SGR section to Burundi represents a significant step in enhancing regional connectivity and economic growth. With international financial institutions backing the construction, the TRC is poised to advance its railway infrastructure projects effectively. The expectation of increased revenue from freight transportation underscores the importance of such projects for both national and regional economies, demonstrating the government’s commitment to diligent implementation of the SGR initiative.
Original Source: www.thecitizen.co.tz
