The Tanzanian government has secured financing for the standard gauge railway (SGR) link to Burundi, overseen by the Tanzania Railways Corporation (TRC). Funding will be provided by Standard Chartered, Sinosure, and the AfDB for construction between Uvinza and Musongati. Current operational and ongoing sections have varied completion rates, with expectations of increased revenue from freight operations following service commencement.
The Tanzanian government has announced that it has secured financing for the construction of a standard gauge railway (SGR) segment connecting Tanzania to Burundi. The Tanzania Railways Corporation (TRC) is in charge of constructing a 2,561-kilometer railway line that will connect the Indian Ocean port of Dar es Salaam to Mwanza, with future extensions to Burundi, the Democratic Republic of the Congo, Rwanda, and Uganda. Currently, the operational segment runs between Dar es Salaam and Dodoma, while subsequent phases are underway. On a recent occasion, Mateshi Tito, the acting director-general of TRC, stated that discussions with three international financial institutions have successfully concluded, securing funds for the railway section extending from Uvinza in Kigoma, Tanzania, to Musongati in Burundi. The financing will be provided by Standard Chartered, the China Export and Credit Insurance Corporation (Sinosure), and the African Development Bank (AfDB). Tito indicated that a contract signing to commence construction would occur soon, although he did not disclose the specific funding amount. During the remarks made at a training session for the parliamentary Public Investment Committee (PIC), Tito reported progress on other phases of the SGR project, outlining completion percentages across various sections. The Makutupora-Tabora stretch is currently 14.53 percent complete, while Tabora-Isaka is at 6.14 percent. The Isaka-Mwanza segment shows a promising 60.62 percent completion rate, and Tabora-Kigoma is at 6.68 percent. Mr. Tito also mentioned ongoing dialogues with firms interested in investing in the SGR, particularly concerning locomotive acquisition and the planned Mtwara-Mbamba Bay railway line. Augustine Vuma Holle, the PIC chairman, emphasized the significant investment of $10 billion in the railway project and expressed optimism about potential revenue increases from freight services once operations begin in February. Holle noted, “We have just seen the TRC report that since SGR started passenger operations, the corporation has collected over Tsh20 billion ($7.5 million).” He explained that the revenue generated from passenger services is typically low, with freight accounting for the majority. Deputy Minister for Transport David Kihenzile reassured stakeholders that the government intends to oversee the SGR project diligently, acknowledging the considerable investments involved.
The construction of the standard gauge railway (SGR) is a major infrastructure project in East Africa, aimed at enhancing trade and connectivity between various countries, including Tanzania and Burundi. This railway system is expected to facilitate not only passenger transport but also significantly boost freight transport capabilities across the region. The involvement of multiple international financial institutions highlights the project’s importance and the confidence in its potential economic impact. This railway will connect crucial economic hubs and ports, assisting in the transportation of goods and resources more efficiently. As sections of the railway reach completion, the expectation is that it will lead to increased revenue for the Tanzania Railways Corporation, which has previously reported positive financial outcomes from current operations.
In summary, the Tanzanian government has made significant strides in securing funding for the SGR railway link to Burundi, with construction projected to enhance trade and connectivity in the East African region. The completion status of various segments indicates steady progress in the project, and the financial backing from several international institutions demonstrates a collaborative effort toward improving regional infrastructure. Furthermore, anticipated revenue increases from freight operations present a compelling economic outlook as the project moves forward.
Original Source: www.theeastafrican.co.ke
