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The Tanzanian government current states that it has managed to secure the funding for the construction of the Tanzania-Burundi SGR link. This project comes in after the EAC sat down in a committee to discuss the joint East African SGR project. This ambitious project is expected to run in all the 8 member states
Currently the Tanzania Railway Corporation is overseeing the construction works of the 2,561-kilometer line. This railway will connect the construction of the railway line that is set to connect the Port of Dar es Salaam to the Port of Mwanza that is located on Lake Victoria. This railway section is expected to eventually spur to Burundi and even enter the DRC, Rwanda and, Uganda.
Similar Project to the Tanzania-Burundi SGR Project in the Region
Recently, Uganda signed a contract with the Turkish firm Yepi Merkezi that will foresee the construction of a 284-kilometre railway. This upcoming railway project is expected to boost regional trade.
According to the project coordinator of the Uganda Standard Gauge Railway, Perez Wamburu, stated that the agreement signed was just for the development of the first section of the planned 1,700 kilometer electric railway line. This railway section is expected to go at a whopping cost of $3 billion. The construction works of this standard gauge railway project are expected to commence November 2024.
AfDB Approves Funding for the Project
In December 2023, the Board of directors of the African Development Bank group did approve a funding package of $696.41 million for both Tanzania and Burundi to commence Phase II of the joint Tanzania-Burundi-DR Congo Standard Gauge Railway network project. According to the Bank’s group this funding was to be utilized for the development of the 651 kilometers on Tanzania to Burundi railway section.
Moreover, this funding by the AfDB group was expected to come in two packages. The first package was to be a $98.62 million package for Burundi and was to be accorded in form of grants. Additionally, a total of $597.79 million was to be granted to the Tanzania in the form of loans and guarantees.
As source reveal, the access to an efficient and cost-effective long haul bulk transport system via the SGR is key. This is because it is set to incentivize both large scale mining and commercial agriculture in the region. This is foreseen to greatly transform the Central Transport Corridor by boosting both trade and agricultural opportunities.
This standard gauge railway project is not only a priority to the East African Community. It is also the African Union Program for Infrastructure Development in Africa priority. It will be very crucial in enhancing both economic and social transformation in Tanzania and Burundi and eventually the entire region as a whole. |
