Tanzania mulls Plan B for its SGR project as Turkish firm derailed
MONDAY OCTOBER 02 2023
Finance ministers from Tanzania and Zanzibar have embarked on fundraising for the standard gauge railway (SGR) project in the wake of the main contractor, Turkish firm Yapi Merkezi, showing signs of financial distress.
This has raised concerns of further delays on the first three phases of the 2,100-km railway seen as crucial to place Tanzania in position as a key trade corridor for East and Central Africa.
Tanzania’s Finance Minister Mwigulu Nchemba was on a European tour over the past fortnight, during which he held talks with officials in several countries regarding their possible involvement in the SGR project, whose estimated total cost upon completion is $10.4 billion.
Read: Tanzania gets funds to clean SGR line
The EastAfrican has learnt that Nchemba’s efforts drew tentative pledges from Spain and Sweden.
Zanzibar Finance Minister Saada Mkuya managed to canvass a similar commitment from the African Development Bank (AfDB), which is willing to provide over $3 billion for the project.
MONDAY OCTOBER 02 2023
Finance ministers from Tanzania and Zanzibar have embarked on fundraising for the standard gauge railway (SGR) project in the wake of the main contractor, Turkish firm Yapi Merkezi, showing signs of financial distress.
This has raised concerns of further delays on the first three phases of the 2,100-km railway seen as crucial to place Tanzania in position as a key trade corridor for East and Central Africa.
Tanzania’s Finance Minister Mwigulu Nchemba was on a European tour over the past fortnight, during which he held talks with officials in several countries regarding their possible involvement in the SGR project, whose estimated total cost upon completion is $10.4 billion.
Read: Tanzania gets funds to clean SGR line
The EastAfrican has learnt that Nchemba’s efforts drew tentative pledges from Spain and Sweden.
Zanzibar Finance Minister Saada Mkuya managed to canvass a similar commitment from the African Development Bank (AfDB), which is willing to provide over $3 billion for the project.
