AFRICAN Development Bank (AfDB) will advise the government on financial mechanism for construction of phase four of the standard gauge railway from Isaka in Shinyanga Region to Kigali, Rwanda.

The railway could possibly be extended to Burundi and DR Congo, according to Finance and Planning Minister Dr Phillip Mpango.

Minister Mpango told the ‘Daily News’ on the sidelines of the Africa Investment Forum in Johannesburg, South Africa last week that the bank would advise the government on the best possible way to finance construction of the as other important issues on the railway line that will extend to three other countries.

“AfDB will advise us on the financial mechanism. They are ready to use their financial leverage to secure funds for the project,” said the minister who had represented President John Magufuli in the investment forum billed a game changer to tilt the flow of investments to Africa.

Tanzania is constructing a standard gauge railway which will eventually link the Indian Ocean port of Dar es Salaam with Mwanza on Lake Victoria and Kigoma on Lake Tanganyika as well as neighbouring Rwanda and Burundi.

The first 202 kilometres from Dar es Salaam to Moro-goro, constructed by Turkish firm Yapi Merkezi in partnership with Portuguese firm Mota-Engil Africais, are in final stages and are expected for launch early next year Funding for the second phase from Morogoro to Makutupora in Singida Region is expected before the end of the month, according to the minister.

He had earlier told the `Daily News’ that the financial deals for the construction of the second phase of the project will be concluded by the end of the month as discussions with a consortium of development finance institutions were at advanced stages.

The minister said some of critical issues for advising in phase four of the project would include whether the phase four of the project would be financed under Public, Private Partnership or another means, how it would and DR Congo, cost and revenue sharing.

Other considerations were whether the project should also include Phase three from Makutupora in Singida Region to Isaka in Shinyanga Region, he said.

The detailed design for an extended line from Isaka in Tanzania to Kigali in Rwanda, covering 575km, was agreed on and both countries are going to finance the project at a cost of 2.5 billion US dollars, with Tanzania paying 1.3 billion US dollars and Rwanda 1.2 billion US dollars. Rwanda will incur another expense to cover the extended line to Rubavu.

AfDB Country Manager for Tanzania Alex Mubiru confirmed to ‘Daily News’ they were advising on the financial mechanism of the project but noted they had not yet been approached to finance the project.

He said they had so far financed a feasibility study for Isaka to Kigali stretch. “We are open to take part of the future financing of the project if the government invites us,” Mr Mubiru told the ‘Daily News’.

He said there was excitement about possibilities for DR Congo to join the project on plans by Tanzania and Rwanda to extend the joint standard gauge railway line to link Kigali and Rubavu on the border with the DR Congo.

“Tanzania and Rwanda are excited about possible DR Congo joining the project because that will mean a lot in its economic viability,” he said.

DR Congo had reportedly given the green light for a feasibility study to be carried out to pave the way for the stretch to its eastern border.

President Tshisekedi said in Dar es Salaam in June that the extension of the SGR to Rubavu would open up trade opportunities for the country which, according to a Trade- Mark East Africa report, depends entirely on the ports of Dar es Salaam and Mombas for its imports and exports.

Source: Daily News

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