Republic of Korea Signs US$1 Billion to Support Development Projects in Tanzania

By Prosper Makene, Dar es Salaam

Ministry of Finance and Planning Permanent Secretary Mr Emmanuel M. Tutuba (Right) and Kim Sun Pyo; Ambassador of the Republic of Korea to Tanzania exchanging the documents after the signing ceremony held in Dar 

Tanzania and Korea have signed Framework Arrangement to enable the Tanzanian Government to access concessional loans from Economic Development Cooperation Fund (EDCF) up to a maximum of USD 1 billion, equivalent to TZS 2.3 trillion to finance various development projects covering the period from 2021 to 2025.

Speaking shortly after the signing ceremony on Thursday in Dar es Salaam, Tanzania’s Ministry of Finance and Planning Permanent Secretary Mr Emmanuel M. Tutuba said:

“It is my great pleasure to have signed with you today, the Framework Arrangement between the Government of the United Republic of Tanzania and the Government of the Republic of Korea to enable the Tanzanian Government to access concessional loans from Economic Development Cooperation Fund (EDCF) up to a maximum of USD 1 billion, equivalent to TZS 2.3 trillion to finance various development projects covering the period from 2021 to 2025.”

The Permanent Secretary added: “Some identified projects are at various stages of preparation to be financed through the funds under this Framework Arrangement are the following: National Identification System Expansion (Phase II) (USD 70 million), equivalent to TZS 163.1 billion. Improvement of National Land Data Infrastructure (USD 65 million), equivalent to TZS 151.5 billion.

Others are water supply system and Wastewater Treatment System Development in Iringa (USD 70 million), equivalent to TZS 163.1 billion and Construction of Modernized Railway Training Center (USD 80 million), equivalent to TZS 186.4 billion.”

He further said that the list comprises of other pipeline projects of Construction including Binguni Hospital in Zanzibar (USD 100 million, equivalent to TZS 233 billion), and others in the sectors of ICT, Health, Energy and Infrastructure.

“Your Excellency Ambassador, on behalf of the Government of the United Republic of Tanzania, I wish to thank you personally and through you the Government of the Republic of Korea for this important contribution for development of our people,” he said.

Tanzania’s Ministry of Finance and Planning Permanent Secretary Mr Emmanuel M. Tutuba (Right) and Kim Sun Pyo; Ambassador of the Republic of Korea to Tanzania sign the Framework Arrangement in Dar es Salaam

Mr Tutuba noted: “Your Excellency Ambassador, as you may recall, this is the fourth Framework Arrangement between our two Governments since EDCF started its operations in Tanzania in 2004, whereby for the previous Framework Arrangements, a total of USD 640 million were committed.”

“In the first Framework Arrangement, the Government of Korea committed concessional loans worth USD 140 million for the period from 2011 through 2013; In the second Framework, the Government of Korea committed USD 200 million for the period from 2015 to 2018.

In the third Framework, the Government of Korea committed a total of USD 300 million for the period from 2018 to 2020,” he observed.

He pointed out that the commitments were utilized to finance projects under sectors of Transport Infrastructure, Education, Health, Energy and Water. Good examples are, New Selander Bridge whose name is now Tanzanite Bridge which has changed the image of Dar es Salaam and significantly reduced the traffic jam along Ali Hassan Mwinyi Road and the Construction of Irrigation Infrastructure in Zanzibar.

“Your Excellency Ambassador, the above commitments and today’s Framework will make the total support of EDCF to URT to be USD 1.64 billion which reflect the growth of our outstanding relationship for development of our people,” he said.

He stressed: “Prior to the listed Framework Arrangements, there were individual arrangements between our two Governments under which some projects like Mloganzila Hospital and Jakaya Mrisho Kikwete Bridge which has connected Tabora and Kigoma regions across Malagarasi river, Iringa – Shinyanga Backborne power project Investment and others were financed.”

“Your Excellency Ambassador, on behalf of the Government of the United Republic of Tanzania, once again I wish to extend my sincere thanks to the Government of the Republic of Korea for this continued support.

I wish to recognize and appreciate the dedication and efforts of our technical experts of our two Governments for the preparation of documents leading to the signing of this Framework Arrangement which involved many and long hours of hard work. It is my hope that this spirit will be sustained going forward,” he said.

The PS concluded: “Let me conclude by re-affirming the Government commitment of under the leadership of Her Excellency Samia Suluhu Hassan, the President of the United Republic of Tanzania to continue strengthening our valuable development cooperation for the benefit of our people. Further, be assured that the Government of the United Republic of Tanzania will take requisite steps to ensure successful implementation of the projects to be financed through the funds under this Framework Arrangement in order to achieve the intended objectives.”

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button