This is Kenyan newspaper, as usual you always try to show that Tanzania can't do what Kenya failed to do. Now between the Minister and the President of the country on one hand, and the newspaper from rival country, who is a reliable source?Tanzania secures $1.46b SGR loan from Stanchart
SATURDAY SEPTEMBER 15 2018
President John Magufuli inspects construction works of the SGR project in Dar es Salaam. PHOTO | NMG
In Summary
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- Funds will enable Tanzania to build the 430km line between Morogoro and Makutupora.
- Already, the government has allocated $700 million for its SGR projects in the 2018/2019 annual budget.
- Last year, President John Magufuli launched a 525km line between Dar es Salaam and Morogoro, which is being funded by the Turkey Exim Bank to the tune of $1.2 billion.
By ALLAN OLINGO
More by this Author
Tanzania has secured a $1.46 billion concessional loan from the Standard Chartered Bank's Group to fund its standard gauge railway line between Morogoro and Dodoma.
Finance Minister Dr Philip Mpango said the new loan was part of an agreement reached with Standard Chartered Bank Group executive director Bill Winters in Dar es Salaam, which would go to fund the 430km line between Morogoro and Makutupora.
The Stanchart loan means that the government has secured more than 75 per cent funding for the $1.9 billion project, which it awarded a joint venture of Portuguese and Turkish firms, Yapi Merkezi and Mota Engil.
It is also understood that it will be issuing a last contract for the third phase of the project this year, and other two contracts to be announced in the first quarter of 2019.
Related Stories
Last year, President John Magufuli launched a 525km line between Dar es Salaam and Morogoro, which is being funded by the Turkey Exim Bank to the tune of $1.2 billion.
Imports from Japan
Tanzania expects to spend close to $14 billion on the line from its capital to its border town with Rwanda at Rusumo, covering almost 2,600 kilometres.
On Wednesday, Dar said that it had already received the first consignment of 7,100 tonnes of rails for the first phase from Japan.
Tanzania’s SGR project manager Maizo Mgedzi said their country opted to import rail from Japan because of the quality and also business relationship the contractors have with their Japanese counterparts.
Mr Mgedzi also revealed that the first phase of the project was at 22 per cent completion, with the contractors already working on the production of the concrete sleepers, precast girder production and levelling of the track surface.
In 2016, Tanzania chose Portuguese-Turkish joint venture of Yapi Merkezi and Mota Engil to build the $1.2 billion first phase, the longest section of the project. The line is expected to be electric accommodating speeds of up to 160 kilometres per hour for passenger trains and 120 kilometres per hour for cargo trains.
Last week, Tanzania's Public Investment Committee expressed concern that the country’s power generation capability might not be enough to power the SGR project, asking the Tanzania Railways Corporation to table before it before the end of November, the electricity supply plan for the line, scheduled for completion in October 2019.
Dar is yet to award contract tender for the last two phases of the project, including the 300 kilometre Makutupora to Tabora, the 135 kilometres Tabora to Isaka and an offshoot from Isaka to Mwanza then the Rusumo border, which will cover close to 250 kilometres.
The news came as Tanzania’s neighbours Kenya and Uganda were going back to the drawing board over their SGR projects. A fortnight ago in Beijing, Kenya failed to sign a financing agreement for the third phase of its SGR line, citing commercial viability concerns from the Chinese.
“We had carried a pre-drawn contract to Beijing and everything was ready. However, we had a discussion with our Chinese counterparts and even though they support this project, we all agreed to do a feasibility study for the whole line so that we can establish its commercial viability,” said Transport Cabinet Secretary James Macharia.
President Uhuru Kenyatta had also requested China’s President Xi Jinping to consider having half of the project cost of $190 million as a grant instead of a loan, which could have changed the financial agreement terms of the Naivasha-Kisumu phase.
Before the Forum on China-Africa cooperation summit took place, officials in Kampala had said that firming up plans for financing the SGR, would be high up on President Museveni’s agenda.
This latest turn of events could portend further delays for the Ugandan phase of the project, which has been banking on Kenyan getting a financial commitment from Beijing for its last phase of Kisumu to Malaba so that it can secure a financial close on its first phase between Malaba and Kampala.
ngoma hii ni ngumu kumezaTanzania secures $1.46b SGR loan from Stanchart
SATURDAY SEPTEMBER 15 2018
President John Magufuli inspects construction works of the SGR project in Dar es Salaam. PHOTO | NMG
In Summary
ADVERTISEMENT
- Funds will enable Tanzania to build the 430km line between Morogoro and Makutupora.
- Already, the government has allocated $700 million for its SGR projects in the 2018/2019 annual budget.
- Last year, President John Magufuli launched a 525km line between Dar es Salaam and Morogoro, which is being funded by the Turkey Exim Bank to the tune of $1.2 billion.
By ALLAN OLINGO
More by this Author
Tanzania has secured a $1.46 billion concessional loan from the Standard Chartered Bank's Group to fund its standard gauge railway line between Morogoro and Dodoma.
Finance Minister Dr Philip Mpango said the new loan was part of an agreement reached with Standard Chartered Bank Group executive director Bill Winters in Dar es Salaam, which would go to fund the 430km line between Morogoro and Makutupora.
The Stanchart loan means that the government has secured more than 75 per cent funding for the $1.9 billion project, which it awarded a joint venture of Portuguese and Turkish firms, Yapi Merkezi and Mota Engil.
It is also understood that it will be issuing a last contract for the third phase of the project this year, and other two contracts to be announced in the first quarter of 2019.
Related Stories
Last year, President John Magufuli launched a 525km line between Dar es Salaam and Morogoro, which is being funded by the Turkey Exim Bank to the tune of $1.2 billion.
Imports from Japan
Tanzania expects to spend close to $14 billion on the line from its capital to its border town with Rwanda at Rusumo, covering almost 2,600 kilometres.
On Wednesday, Dar said that it had already received the first consignment of 7,100 tonnes of rails for the first phase from Japan.
Tanzania’s SGR project manager Maizo Mgedzi said their country opted to import rail from Japan because of the quality and also business relationship the contractors have with their Japanese counterparts.
Mr Mgedzi also revealed that the first phase of the project was at 22 per cent completion, with the contractors already working on the production of the concrete sleepers, precast girder production and levelling of the track surface.
In 2016, Tanzania chose Portuguese-Turkish joint venture of Yapi Merkezi and Mota Engil to build the $1.2 billion first phase, the longest section of the project. The line is expected to be electric accommodating speeds of up to 160 kilometres per hour for passenger trains and 120 kilometres per hour for cargo trains.
Last week, Tanzania's Public Investment Committee expressed concern that the country’s power generation capability might not be enough to power the SGR project, asking the Tanzania Railways Corporation to table before it before the end of November, the electricity supply plan for the line, scheduled for completion in October 2019.
Dar is yet to award contract tender for the last two phases of the project, including the 300 kilometre Makutupora to Tabora, the 135 kilometres Tabora to Isaka and an offshoot from Isaka to Mwanza then the Rusumo border, which will cover close to 250 kilometres.
The news came as Tanzania’s neighbours Kenya and Uganda were going back to the drawing board over their SGR projects. A fortnight ago in Beijing, Kenya failed to sign a financing agreement for the third phase of its SGR line, citing commercial viability concerns from the Chinese.
“We had carried a pre-drawn contract to Beijing and everything was ready. However, we had a discussion with our Chinese counterparts and even though they support this project, we all agreed to do a feasibility study for the whole line so that we can establish its commercial viability,” said Transport Cabinet Secretary James Macharia.
President Uhuru Kenyatta had also requested China’s President Xi Jinping to consider having half of the project cost of $190 million as a grant instead of a loan, which could have changed the financial agreement terms of the Naivasha-Kisumu phase.
Before the Forum on China-Africa cooperation summit took place, officials in Kampala had said that firming up plans for financing the SGR, would be high up on President Museveni’s agenda.
This latest turn of events could portend further delays for the Ugandan phase of the project, which has been banking on Kenyan getting a financial commitment from Beijing for its last phase of Kisumu to Malaba so that it can secure a financial close on its first phase between Malaba and Kampala.
Tumeenda sawa au niongeze volume kidogo😀😀😀
View attachment 1341143
Anajua kila kitu, tatizo wanashindwa kukubaliana na ukweli kwamba Tanzania ni nchi ya kwanza hapa Afrika kujenga reli ya UMEME ndefu bila mkopo, Morroco yao ni 300Km tu, lakini 80% ni mkopo, pamoja kuwa na uchumi mkubwa, hapo ndio panapowachanganya wakenyaMimi najua hairuhusiwihi kuweka financed by Goverment of Tanzania kama ni Gov of .. turkey wamefinance lazima turkey watataka wajulikane wame finance ...
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Just wait an update from the world bank u will die [emoji3][emoji3]Hawa ccm sycophants wanatumia nguvu nyingi sana........Tanzania bado tu ldc.fanyeni catch up siyo mbaya ...
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Dah jirani mna roho ngumu yn bakora zote mlizochapwa kwa kuoneshwa miradi mikubwa miradi ambayo only developed countries can accommodate lkn bdo mnaleta uchafu apa Dah pathetic
Aisee wangegoma kutoa fedha! Ni kama upewe fedha na WB halafu useme ni za serikali ya Tanzania!Mimi najua hairuhusiwihi kuweka financed by Goverment of Tanzania kama ni Gov of .. turkey wamefinance lazima turkey watataka wajulikane wame finance ...
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Ungemalizia kwa kuandika hiviYour SGR is 100% loan.
Ati tanzanian government is funding their own sgr.......what more load of schmuck and hogwash aren't we expecting from these ccm sycophants.Aisee wangegoma kutoa fedha! Ni kama upewe fedha na WB halafu useme ni za serikali ya Tanzania!
We are just not as corrupt as you are so until you bring us proof of those "mine deals" put a sock in it.Ati tanzanian government is funding their own sgr.......what more load of schmuck and hogwash aren't we expecting from these ccm sycophants.
Those are secret deals in exchange for a few mine fields that the citizenry won't know anything about.its bemusing how stupid tanzanians swallow the hook line and sinker that easily. Maybe it's because they are ashamed of looking bad infront of kenyans.
I am sure if i start a thread with a pseudo account about the tanzanian sgr the beans will be spilt pronto..........drops mic..
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We are just not as corrupt as you are so until you bring us proof of those "mine deals" put a sock in it.
Dah jirani mna roho ngumu yn bakora zote mlizochapwa kwa kuoneshwa miradi mikubwa miradi ambayo only developed countries can accommodate lkn bdo mnaleta uchafu apa Dah pathetic
Wanatumia nguvu nyingi how hatujakusoma bado funguka 😀😀😀😀😀Hawa ccm sycophants wanatumia nguvu nyingi sana........Tanzania bado tu ldc.fanyeni catch up siyo mbaya ...
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